5. GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 5 - GOODWILL AND OTHER INTANGIBLE ASSETS

Combined goodwill of the Group at December 31, 2012 totaled $9.9 million. Goodwill is recorded as a result of business combinations. Activity in goodwill for the years ended December 31, 2011 and 2012 is provided below (in thousands):

Balance as of January 1, 2011 (unaudited)	$	223
Goodwill acquired through GBDIP's acquisition of MIB Partnership, LLP		7,593
Balance as of December 31, 2011 (unaudited)		7,816
Goodwill acquired through Carroll County Radiology's acquisition of Westminster from RadNet, Inc.		2,107
Balance as of December 31, 2012	$	9,923

Other intangible assets are primarily related to the value of management service contracts on the books of MRI at St. Joseph Medical Center, LLC and covenant not to compete contracts acquired through GBDIP’s acquisition of a controlling interest of a previously held non-consolidated joint venture investment and totaled $522,000 on the date of acquisition. Accumulated amortization of the management service contract and covenant not to compete contract intangible assets through December 31, 2012 was $79,000 and $104,000, respectively. Amortization expense for the year ended December 31, 2012 was $120,000.  The value of these covenant not to compete contracts are amortized using the straight-line method over five years.  Management service contracts are amortized over 25 years.

The following table shows annual amortization expense, by asset classes that will be recorded over the next five years (in thousands):

	2013		2014		2015		2016		2017		Thereafter		Total		Weighted average amortization period remaining in years
Management service contracts		16		16		16		16		16		226		306		19.0
Covenant not to compete contracts		104		104		105		105		–		–		418		4.0
Total annual amortization	$	120	$	120	$	121	$	121	$	16	$	226	$	724