Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Intangible Assets

The changes in the carrying amount of goodwill for the six months ended June 30, 2018 and 2017 were as follows (in thousands):

Goodwill
Balance as of January 1, 2018	$	2,832
Foreign currency translation adjustment		(49	)
Goodwill impairment		(675	)
Balance as of June 30, 2018	$	2,108

Balance as of January 1, 2017	$	2,734
Foreign currency translation adjustment		42
Balance as of June 30, 2017	$	2,776

The Company recorded a full goodwill impairment of $675,000 for its DDS segment as of June 30, 2018.

The Company periodically analyzes whether any indicators of impairment have occurred. As part of these periodic analyses, the Company compares its estimated fair value, as determined based on its stock price, to its net book value. The continued decline in the Company’s stock price was viewed by the Company as a triggering event under ASU 2017-04 which required an assessment for possible goodwill impairment as of June 30, 2018. Under the provisions of ASU 2017-04, which the Company opted to early adopt, goodwill impairment is recognized based on Step 1 of the current guidance, which calculates the carrying value in excess of the reporting unit’s fair value.

The Company performed this assessment as of June 30, 2018 and determined that the fair value of the Agility segment exceeded its carrying value, but the fair value of the DDS segment was below its carrying value. As a result, the Company recorded a full goodwill impairment of $675,000 for the DDS segment reporting unit as of June 30, 2018. In addition, the Company also recorded an adjustment to reverse the deferred tax liability that was previously recorded as a result of amortizing goodwill for tax purposes.

The fair value measurement of goodwill was classified within Level 3 of the fair value hierarchy because the income approach was used, which utilizes significant inputs that are unobservable in the market. The Company believes it made reasonable estimates and assumptions to calculate the fair value of the reporting unit as of the impairment test measurement date.

Information regarding the Company’s acquisition-related intangible assets is as follows (in thousands):

							Trademarks						Media
	Developed			Customer			and trade						Contact
	technology			relationships			names			Patents			Database			Total
Gross carrying amounts:
Balance as of January 1, 2018	$	3,204		$	2,264		$	884		$	46		$	3,647		$	10,045
Foreign currency translation		(107	)		(104	)		(13	)		(2	)		(21	)		(247	)
Balance as of June 30, 2018	$	3,097		$	2,160		$	871		$	44		$	3,626		$	9,798

					Trademarks				Media
	Developed		Customer		and trade				Contact
	technology		relationships		names		Patents		Database		Total
Gross carrying amounts:
Balance as of January 1, 2017	$	3,019	$	2,112	$	865	$	43	$	3,510	$	9,549
Foreign currency translation		84		65		4		1		75		229
Balance as of June 30, 2017	$	3,103	$	2,177	$	869	$	44	$	3,585	$	9,778

							Trademarks					Media
	Developed			Customer			and trade					Contact
	technology			relationships			names			Patents		Database			Total
Accumulated amortization:
Balance as of January 1, 2018	$	902		$	645		$	330		$	15	$	547		$	2,439
Amortization expense		159			93			61			2		181			496
Foreign currency translation		(39	)		(33	)		(5	)		-		(3	)		(80	)
Balance as of June 30, 2018	$	1,022		$	705		$	386		$	17	$	725		$	2,855

					Trademarks				Media
	Developed		Customer		and trade				Contact
	technology		relationships		names		Patents		Database		Total
Accumulated amortization:
Balance as of January 1, 2017	$	545	$	425	$	203	$	10	$	175	$	1,358
Amortization expense		153		89		60		2		181		485
Foreign currency translation		18		15		2		1		2		38
Balance as of June 30, 2017	$	716	$	529	$	265	$	13	$	358	$	1,881

Amortization expense relating to acquisition-related intangible assets was $0.2 million for each of the three months ended June 30, 2018 and 2017. Amortization expense relating to acquisition-related intangible assets was $0.5 million for each of the six months ended June 30, 2018 and 2017.

Estimated amortization expense for intangible assets after June 30, 2018 is as follows (in thousands):

Year	Amortization
2018	$	521
2019		945
2020		912
2021		912
2022		912
Thereafter		2,741
	$	6,943