GVHR » Topics » 5. INTANGIBLE ASSETS

This excerpt taken from the GVHR 10-Q filed May 11, 2009.
             INTANGIBLE ASSETS

 

At December 31, 2008, intangible assets consisted of purchased client service agreements. These intangible assets were fully amortized as of March 31, 2009.

 

Amortization expense from continuing operations for the three months ended March 31, 2009 and 2008 was $1,825 and $2,410, respectively. Amortization expense from discontinued operations for the three months ended March 31, 2009 and 2008 was $0 and $69 respectively. There is no estimated amortization expense for the remainder of 2009.

 

11



These excerpts taken from the GVHR 10-K filed Mar 16, 2009.

Intangible Assets

 

The Company has recorded significant intangible assets as a result of acquisitions. The intangible assets related to the client service agreements acquired were initially valued with the assistance of a third party, are considered to have a finite life, and are being amortized straight-line over a 5-year period based upon the estimated rate of client attrition. The original estimate of client attrition was based upon the previous experience of the Company. The Company reviews the remaining life of the intangible assets periodically and reviews for impairment if events and circumstances warrant. Changes to the estimated economic life, if any, may result in an increase in amortization expense that may be significant.

 

Goodwill is tested for impairment annually and between annual tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired. During the fourth quarter of 2008, the Company’s market capitalization dropped below the net book value of its equity.  In addition, forecasted cash flows decreased reflecting continued deterioration of macroeconomic conditions which accelerated and became apparent during the fourth quarter of 2008.  As a result and in connection with the Company’s annual test for goodwill impairment, the Company determined that the fair value of the Company was less than its carrying value and that the implied fair value of the goodwill was zero. Accordingly, the Company recorded a goodwill impairment loss of $8.7 million which eliminated goodwill in its entirety. The fair value of the Company was based on a combination of the discounted cash flow method, the guideline company method, and the similar transaction method. In conjunction with the goodwill impairment testing, the Company analyzed the valuation of its other long-lived and intangible assets (including deferred tax assets) and, based upon the weighted probability of alternative scenarios that existed as of December 31, 2008, concluded that the carrying value of long-lived assets was recoverable and that no other impairments or valuation allowances were required.

 

Intangible
Assets



 



The Company has
recorded significant intangible assets as a result of acquisitions. The
intangible assets related to the client service agreements acquired were
initially valued with the assistance of a third party, are considered to have a
finite life, and are being amortized straight-line over a 5-year period based
upon the estimated rate of client attrition. The original estimate of client
attrition was based upon the previous experience of the Company. The Company
reviews the remaining life of the intangible assets periodically and reviews
for impairment if events and circumstances warrant. Changes to the estimated
economic life, if any, may result in an increase in amortization expense that
may be significant.



 



Goodwill is tested
for impairment annually and between annual tests if an event occurs or
circumstances change that would indicate the carrying amount may be impaired. During the fourth quarter of 2008, the
Company’s market capitalization dropped below the net book value of its
equity.  In addition, forecasted cash flows
decreased reflecting continued deterioration of macroeconomic conditions which
accelerated and became apparent during the fourth quarter of 2008.  As a result and in connection with the
Company’s annual test for goodwill impairment, the Company determined that the
fair value of the Company was less than its carrying value and that the implied
fair value of the goodwill was zero. Accordingly, the Company recorded a
goodwill impairment loss of $8.7 million which eliminated goodwill in its
entirety. The fair value of the Company was based on a combination of
the discounted cash flow method, the guideline company method, and the similar
transaction method. In conjunction with the goodwill impairment testing, the
Company analyzed the valuation of its other long-lived and intangible assets
(including deferred tax assets) and, based upon the weighted probability of
alternative scenarios that existed as of December 31, 2008, concluded that
the carrying value of long-lived assets was recoverable and that no other
impairments or valuation allowances were required.



 



Intangible
Assets



 



The Company has
recorded significant intangible assets as a result of acquisitions. The
intangible assets related to the client service agreements acquired were
initially valued with the assistance of a third party, are considered to have a
finite life, and are being amortized straight-line over a 5-year period based
upon the estimated rate of client attrition. The original estimate of client
attrition was based upon the previous experience of the Company. The Company
reviews the remaining life of the intangible assets periodically and reviews
for impairment if events and circumstances warrant. Changes to the estimated
economic life, if any, may result in an increase in amortization expense that
may be significant.



 



Goodwill is tested
for impairment annually and between annual tests if an event occurs or
circumstances change that would indicate the carrying amount may be impaired. During the fourth quarter of 2008, the
Company’s market capitalization dropped below the net book value of its
equity.  In addition, forecasted cash flows
decreased reflecting continued deterioration of macroeconomic conditions which
accelerated and became apparent during the fourth quarter of 2008.  As a result and in connection with the
Company’s annual test for goodwill impairment, the Company determined that the
fair value of the Company was less than its carrying value and that the implied
fair value of the goodwill was zero. Accordingly, the Company recorded a
goodwill impairment loss of $8.7 million which eliminated goodwill in its
entirety. The fair value of the Company was based on a combination of
the discounted cash flow method, the guideline company method, and the similar
transaction method. In conjunction with the goodwill impairment testing, the
Company analyzed the valuation of its other long-lived and intangible assets
(including deferred tax assets) and, based upon the weighted probability of
alternative scenarios that existed as of December 31, 2008, concluded that
the carrying value of long-lived assets was recoverable and that no other
impairments or valuation allowances were required.



 



Intangible Assets

 

 Intangible assets represent client service agreements acquired from independent parties. Acquired intangible assets were determined to have finite lives and are amortized on a straight-line basis over their estimated economic lives of 5 years. Intangible assets with finite lives are tested for impairment whenever events or circumstances indicate that the carrying amount of the asset exceeds the estimated undiscounted cash flows used in determining the fair value of the asset. The Company has determined that no impairment of the intangible assets existed as of December 31, 2008.  See Note 2 for the discussion of intangible asset impairment related to the discontinued operations of Gevity Edge Select.

 

Intangible Assets



 



 Intangible
assets represent client service agreements acquired from independent parties.
Acquired intangible assets were determined to have finite lives and are
amortized on a straight-line basis over their estimated economic lives of
5 years. Intangible assets with finite lives are tested for impairment
whenever events or circumstances indicate that the carrying amount of the asset
exceeds the estimated undiscounted cash flows used in determining the fair value
of the asset. The Company has determined that no impairment of the intangible
assets existed as of December 31, 2008. 
See Note 2 for the discussion of intangible asset impairment related to
the discontinued operations of Gevity Edge Select.



 



Intangible Assets



 



 Intangible
assets represent client service agreements acquired from independent parties.
Acquired intangible assets were determined to have finite lives and are
amortized on a straight-line basis over their estimated economic lives of
5 years. Intangible assets with finite lives are tested for impairment
whenever events or circumstances indicate that the carrying amount of the asset
exceeds the estimated undiscounted cash flows used in determining the fair value
of the asset. The Company has determined that no impairment of the intangible
assets existed as of December 31, 2008. 
See Note 2 for the discussion of intangible asset impairment related to
the discontinued operations of Gevity Edge Select.



 



This excerpt taken from the GVHR 10-Q filed Nov 10, 2008.
             INTANGIBLE ASSETS

 

At September 30, 2008 and December 31, 2007, intangible assets consisted of the following:

 

 

 

September 30,
2008

 

December 31,
2007

 

Purchased client service agreements

 

$

48,097

 

$

48,097

 

Accumulated amortization

 

(44,108

)

(36,711

)

Intangible assets, net

 

$

3,989

 

$

11,386

 

 

Amortization expense for the three months ended September 30, 2008 and 2007 was $2,410 and $2,524, respectively. Amortization expense for the nine months ended September 30, 2008 and 2007 was $7,397 and $7,516, respectively. Estimated amortization expense for the remainder of 2008 and for 2009 is $2,164 and $1,825, respectively.

 

This excerpt taken from the GVHR 10-Q filed Aug 11, 2008.
                                     INTANGIBLE ASSETS

 

At June 30, 2008 and December 31, 2007, intangible assets consisted of the following:

 

 

 

June 30, 
2008

 

December 31, 
2007

 

Purchased client service agreements

 

$

48,097

 

$

48,097

 

Accumulated amortization

 

(41,698

)

(36,711

)

Intangible assets, net

 

$

6,399

 

$

11,386

 

 

Amortization expense for the three months ended June 30, 2008 and 2007 was $2,508 and $2,525, respectively. Amortization expense for the six months ended June 30, 2008 and 2007 was $4,987 and $4,992, respectively. Estimated amortization expense for the remainder of 2008 and for 2009 is $4,574 and $1,825, respectively.

 

This excerpt taken from the GVHR 10-Q filed May 12, 2008.

6.             INTANGIBLE ASSETS

 

At March 31, 2008 and December 31, 2007, intangible assets consisted of the following:

 

 

 

March 31,
2008

 

December 31,
2007

 

Purchased client service agreements

 

$

48,097

 

$

48,097

 

Accumulated amortization

 

(39,190

)

(36,711

)

Intangible assets, net

 

$

8,907

 

$

11,386

 

 

Amortization expense for the three months ended March 31, 2008 and 2007 was $2,479 and $2,467, respectively. Estimated amortization expense for the remainder of 2008 and for 2009 is $7,082 and $1,825, respectively.

 

These excerpts taken from the GVHR 10-K filed Mar 17, 2008.

8. INTANGIBLE ASSETS

        At December 31, 2007 and 2006, intangible assets consisted of the following:

 
  December 31, 2007
  December 31, 2006
 
Client service agreements   $ 48,097   $ 47,929  
Accumulated amortization     (36,711 )   (27,073 )
   
 
 
Intangible assets, net   $ 11,386   $ 20,856  
   
 
 

        Amortization expense for the year ended December 31, 2007, 2006 and 2005 was $10,041, $9,638, and $9,639 respectively. Estimated amortization expense for each of the remaining 5 years is $9,433, $1,866, $41, $41 and $5 respectively. As a result of the $1,729 impairment loss related to the HRA client service agreements as discussed above in Note 7, the client service agreements and the related accumulated amortization have been reduced by $2,131 and $402, respectively, as of December 31, 2007.

        For the years ended December 31, 2007 and 2006, the rollforward of goodwill by operating segment is as follows:

 
  Gevity Edge
  Gevity Edge Select
  Total
 
Goodwill balance at December 31, 2005   $ 8,692   $   $ 8,692  
   
 
 
 
Goodwill balance at December 31, 2006     8,692         8,692  
Acquisition of HRA         5,966     5,966  
HRA goodwill impairment         (5,434 )   (5,434 )
   
 
 
 
Goodwill balance at December 31, 2007   $ 8,692   $ 532   $ 9,224  
   
 
 
 

8. INTANGIBLE ASSETS



        At December 31, 2007 and 2006, intangible assets consisted of the following:



























































 
 December 31, 2007
 December 31, 2006
 
Client service agreements $48,097 $47,929 
Accumulated amortization  (36,711) (27,073)
  
 
 
Intangible assets, net $11,386 $20,856 
  
 
 




        Amortization
expense for the year ended December 31, 2007, 2006 and 2005 was $10,041, $9,638, and $9,639 respectively. Estimated amortization expense for each of the remaining
5 years is $9,433, $1,866, $41, $41 and $5 respectively. As a result of the $1,729 impairment loss related to the HRA client service agreements as discussed above in Note 7, the client
service agreements and the related accumulated amortization have been reduced by $2,131 and $402, respectively, as of December 31, 2007.




        For
the years ended December 31, 2007 and 2006, the rollforward of goodwill by operating segment is as follows:














































































































 
 Gevity Edge
 Gevity Edge Select
 Total
 
Goodwill balance at December 31, 2005 $8,692 $ $8,692 
  
 
 
 
Goodwill balance at December 31, 2006  8,692    8,692 
Acquisition of HRA    5,966  5,966 
HRA goodwill impairment    (5,434) (5,434)
  
 
 
 
Goodwill balance at December 31, 2007 $8,692 $532 $9,224 
  
 
 
 




This excerpt taken from the GVHR 10-K filed Mar 16, 2007.
Intangible Assets
 
The Company has recorded significant intangible assets as a result of the EPIX and other acquisitions. The intangible assets related to the client service agreements acquired were valued by a third party, are considered to have a finite life, and are being amortized over a 5-year period based upon the estimated rate of client attrition. The original estimate of client attrition was based upon the previous experience of the Company. The Company reviews the remaining life of the intangible assets periodically and reviews for impairment if events and circumstances warrant. Changes to the estimated economic life, if any, may result in an increase in amortization expense that may be significant.
 
Goodwill is tested for impairment annually and between annual tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired.
 
This excerpt taken from the GVHR 10-Q filed Oct 27, 2005.

5.       INTANGIBLE ASSETS

        At September 30, 2005 and December 31, 2004, intangible assets consisted of the following:

  September 30,
2005

December 31,
2004

Purchased client service agreements     $ 47,929   $ 47,929  
Accumulated amortization    (15,025 )  (7,796 )


Intangible assets, net   $ 32,904   $ 40,133  


        Amortization expense for the three months ended September 30, 2005 and 2004 was $2,410 and $2,381, respectively, and for the nine months ended September 30, 2005 and 2004 was $7,229 and $5,221, respectively. Estimated amortization expense for the remainder of 2005 and for each of the next four succeeding years is $2,409, $9,638, $9,638, $9,638 and $1,581, respectively.

This excerpt taken from the GVHR 10-Q filed Jul 28, 2005.

5. INTANGIBLE ASSETS

        At June 30, 2005 and December 31, 2004, intangible assets consisted of the following:

  June 30,
2005

December 31,
2004

Purchased client service agreements     $ 47,929   $ 47,929  
Accumulated amortization    (12,615 )  (7,796 )


Intangible assets, net   $ 35,314   $ 40,133  


        Amortization expense for the three months ended June 30, 2005 and 2004 was $2,410 and $2,380, respectively, and for the six months ended June 30, 2005 and 2004 was $4,819 and $2,840, respectively. Estimated amortization expense for the remainder of 2005 and for each of the next four succeeding years is $4,819, $9,638, $9,638, $9,638 and $1,581, respectively.

This excerpt taken from the GVHR 10-Q filed May 9, 2005.

5.       INTANGIBLE ASSETS

        At March 31, 2005 and December 31, 2004, intangible assets consisted of the following:

  March 31,
2005

December 31,
2004

Purchased client service agreements     $ 47,929   $ 47,929  
Accumulated amortization       (10,206 )   (7,796 )


Intangible assets, net     $ 37,723   $ 40,133  


        Amortization expense for the three months ended March 31, 2005 and 2004 was $2,410 and $459, respectively. Estimated amortization expense for the remainder of 2005 and for each of the next four succeeding years is $7,228, $9,638, $9,638, $9,638 and $1,581, respectively.

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