Identifiable intangible assets

6 Months Ended

Jun. 30, 2014

Identifiable intangible assets [Abstract]

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 months and six months ended June 30, 2014 were $532,000 and $1,526,000, respectively. Software costs capitalized during the three and six months ended June 30, 2013 were $965,000 and $1,626,000, 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, 2014 were $ 468,000 and $932,000, respectively. Amortization for the three and six months ended June 30, 2013 were $400,000 and $492,000, respectively.

The components of identifiable intangible assets are:

	(in thousands)
	June 30,			December 31,
	2014			2013
Acquired and internally developed software costs	$	18,165		$	16,640
Trademarks (non-amortizable)		1,800			1,800
		19,965			18,440
Less accumulated amortization		(4,301	)		(3,369	)
	$	15,664		$	15,071

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

2014	$	1,061
2015		2,268
2016		2,237
2017		2,137
2018		2,034
Thereafter		4,127
Total	$	13,864