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Goodwill and Intangible Assets
9 Months Ended
Sep. 30, 2011
Goodwill and Intangible Assets 
Goodwill and Intangible Assets

4. Goodwill and Intangible Assets

 

Goodwill

 

There was no change in goodwill during the nine months ended September 30, 2011. Goodwill totaled $25.5 million as of September 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 September 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

 

$

6,515

(1)

$

325

 

$

6,190

 

$

5,925

(1)

$

203

 

$

5,722

 

Customer relationships

 

6

 

10,600

 

5,987

 

4,613

 

10,100

 

4,672

 

5,428

 

Non-compete agreements

 

4

 

1,070

 

675

 

395

 

1,070

 

471

 

599

 

Total intangible assets

 

 

 

$

18,185

 

$

6,987

 

$

11,198

 

$

17,095

 

$

5,346

 

$

11,749

 

 

(1)    Included in the total amount for “Patent, trademarks & URLs” at September 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 an analysis of the purchase price, as of September 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.

 

Total amortization expense for intangible assets was approximately $0.6 million and $0.5 million for the three months ended September 30, 2011 and 2010, respectively and approximately $1.6 million and $1.4 million for the nine months ended September 30, 2011 and 2010.

 

Estimated amortization expense for intangible assets in each of the next five years and thereafter is as follows: $0.6 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.