Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2011

Goodwill and Intangible Assets

Goodwill and Intangible Assets

4. Goodwill and Intangible Assets

Goodwill

There was no change in goodwill during the six months ended June 30, 2011. Goodwill totaled $25.5 million as of June 30, 2011 and December 31, 2010, all of which related to our MME segment.

Intangible Assets

The following table sets forth the amounts recorded for intangible assets as of the periods presented (in thousands):

	Weighted
	Average
	Estimated	At June 30, 2011							At December 31, 2010
	Useful Lives	Gross			Accumulated		Net		Gross			Accumulated		Net
	(years)	Amount			Amortization		Amount		Amount			Amortization		Amount
Patent, trademarks & URLs	8	$	6,509	(1)	$	279	$	6,230	$	5,925	(1)	$	203	$	5,722
Customer relationships	6	10,600			5,544		5,056		10,100			4,672		5,428
Non-compete agreements	4	1,070			607		463		1,070			471		599
Total intangible assets		$	18,179		$	6,430	$	11,749	$	17,095		$	5,346	$	11,749

(1)  Included in the total amount for “Patent, trademarks, & URLs” at June 30, 2011 and December 31, 2010 are $5.2 million of trademarks with indefinite useful lives acquired in the SARCOM acquisition that are not amortized.

On February 18, 2011, we acquired certain intangible assets of eCost.com, a subsidiary of PFSweb, Inc., as well as approximately $1 million of inventory and $0.3 million of software, for $2.3 million. Based on a preliminary analysis of the purchase price, as of June 30, 2011, the intangible assets, which are included in the table above under “Patent, trademarks & URLs” and “Customer relationships” were valued at $1.0 million.

Amortization expense for intangible assets was approximately $0.6 million and $0.4 million for the three months ended June 30, 2011 and 2010, respectively and approximately $1.1 million and $0.8 million for the six months ended June 30, 2011 and 2010.

Estimated amortization expense for intangible assets in each of the next five years and thereafter is as follows: $1.1 million in the remainder of 2011; $2.0 million in 2012; $1.0 million in 2013; $0.6 million in 2014; $0.5 million in 2015; and $1.3 million thereafter.