Management Contracts

12 Months Ended

Dec. 31, 2011

Management Contracts [Abstract]

Management Contracts

Note E - Management Contracts

During the second quarter of 2011, as part of the Company's combination with Eola, Parkway purchased the management contracts associated with Eola's property management business.  At the purchase date, the contracts were valued by an independent appraiser at $51.8 million.  The value of the management contracts is based on the sum of the present value of future cash flows attributable to the management contracts, in addition to the value of tax savings as a result of the amortization of intangible assets.  During the year ended December 31, 2011, the Company recorded amortization expense of $2.2 million on the management contracts.  Also, in conjunction with the valuation of the management company, the Company recorded $26.2 million of goodwill, an initial $31.0 million liability related to contingent consideration and an initial deferred tax liability of $14.8 million.