Identifiable intangible assets

6 Months Ended

Jun. 30, 2013

Identifiable intangible assets [Abstract]

Identifiable intangible assets

Note 4 — 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 and six months ended June 30, 2013 were $965,000 and $1,626,000, respectively.  Capitalized software for the three and six months ended June 30, 2012 was $942,000 and $1,622,000, respectively

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 and six months ended June 30, 2013 was $400,000 and $492,000, respectively.  Amortization for the three and six months ended June 30, 2012 was $398,000  and $764,000.

The Company acquired identifiable intangible assets in connection with its acquisitions in prior years.  Amortization for the three and six months ended June 30, 2012 was $150,000 and $303,000, respectively.  The related intangible assets were fully amortized in 2012.

The components of identifiable intangible assets are:

	(in thousands)
	June 30,			December 31,
	2013			2012
Acquired and internally developed software costs	$	13,614		$	11,988
Trademarks (non-amortizable)		1,800			1,800
		15,414			13,788
Less accumulated amortization		(2,533	)		(2,041	)
	$	12,881		$	11,747

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

2013	$	783
2014		1,626
2015		1,547
2016		1,518
2017		1,493
2018		1,419
Thereafter		2,695
Total	$	11,081