Identifiable intangible assets

3 Months Ended

Mar. 31, 2013

Identifiable intangible assets [Abstract]

Identifiable intangible assets

The Company capitalizes certain costs related to the development of computer software sold by its Hospitality segment. Software development costs incurred prior to establishing technological feasibility are charged to operations and included in research and development costs in the period the costs are incurred.  Software development costs incurred after establishing technological feasibility (as defined within ASC 985-20) are capitalized and amortized on a product-by-product basis when the product is available for general release to customers.  Software costs capitalized during the three months ended March 31, 2013 were $661,000.  Capitalized software for the three months ended March 31, 2012 was $679,000.

Annual amortization, charged to cost of sales when the product is available for general release to customers, is computed using the greater of (a) the straight-line method over the remaining estimated economic life of the product, generally three to seven years or (b) the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product. Amortization of capitalized software costs for the three months ended March 31, 2013 was $92,000.  Amortization for the three months ended March 31, 2012 was $366,000.

The Company acquired identifiable intangible assets in connection with its acquisitions in prior years.  Amortization for the three months ended March 31, 2012 was $153,000.  The related intangible assets were fully amortized in 2012.

The components of identifiable intangible assets are:

	(in thousands)
	March 31,			December 31,
	2013			2012
Acquired and internally developed software costs	$	12,649		$	11,988
Trademarks (non-amortizable)		1,800			1,800
		14,449			13,788
Less accumulated amortization		(2,133	)		(2,041	)
	$	12,316		$	11,747

The future amortization of these intangible assets assuming straight-line amortization of capitalized software costs is as follows (in thousands):

2013	$	1,241
2014		1,667
2015		1,567
2016		1,539
2017		1,514
Thereafter		2,988
Total	$	10,516