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Goodwill and Intangible Assets | 12 Months Ended
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Mar. 31, 2012
Goodwill and Intangible Assets [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS 6. GOODWILL AND INTANGIBLE ASSETS Agilysys allocates the cost of its acquisitions to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the cost over the fair value of the identified net assets acquired is recorded as goodwill. Goodwill Agilysys tests goodwill for impairment at the reporting unit level upon identification of impairment indicators, or at least annually. A reporting unit is the operating segment or one level below the operating segment (depending on whether certain criteria are met). Goodwill was allocated to our reporting units that are anticipated to benefit from the synergies of the business combinations generating the underlying goodwill. As discussed in Note 16, Business Segments, Agilysys has two operating segments. We conducted our annual goodwill impairment test on February 1, 2012, 2011 and 2010. As a result of this analysis, we concluded that no impairment indicators existed. The changes in the carrying amount of goodwill for the years ended March 31, 2012 and 2011 are as follows:
(In thousands) |  | HSG |  |  | RSG |  |  | Total |
Balance at March 31, 2010 |  | $ | 135,097 |  |  | $ | 24,912 |  |  | $ | 160,009 |
Accumulated impairment losses as of March 31, 2010 |  |  | (120,087 | ) |  |  | (24,912 | ) |  |  | (144,999 | )
|  |  | 15,010 |  |  |  | — |  |  |  | 15,010 |
Impact of foreign currency translation |  |  | 201 |  |  |  | — |  |  |  | 201 |
Balance at March 31, 2011 |  | $ | 15,211 |  |  | $ | — |  |  | $ | 15,211 |
Impact of foreign currency translation |  |  | (13 | ) |  |  | — |  |  |  | (13 | )
Balance at March 31, 2012 |  | $ | 15,198 |  |  | $ | — |  |  | $ | 15,198 |
Intangible Assets The following table summarizes our intangible assets at March 31, 2012, and 2011:
|  | 2012 |  |  | 2011 |
(In thousands) |  | Gross carrying amount |  |  | Accumulated amortization |  |  | Net carrying amount |  |  | Gross carrying amount |  |  | Accumulated amortization |  |  | Net carrying amount |
Amortized intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 12,475 |  |  | $ | (9,979 | ) |  | $ | 2,496 |  |  | $ | 12,475 |  |  | $ | (9,060 | ) |  | $ | 3,415 |
Non-competition agreements |  |  | 2,910 |  |  |  | (2,162 | ) |  |  | 748 |  |  |  | 2,910 |  |  |  | (1,901 | ) |  |  | 1,009 |
Developed technology |  |  | 19,578 |  |  |  | (10,683 | ) |  |  | 8,895 |  |  |  | 16,312 |  |  |  | (9,027 | ) |  |  | 7,285 |
Patented technology |  |  | 80 |  |  |  | (80 | ) |  |  | — |  |  |  | 80 |  |  |  | (80 | ) |  |  | — |
Project expenditures not yet in use |  |  | 945 |  |  |  | — |  |  |  | 945 |  |  |  | 1,685 |  |  |  | — |  |  |  | 1,685 |
Accumulated impairment |  |  | (9,493 | ) |  |  | 1,344 |  |  |  | (8,149 | ) |  |  | (59 | ) |  |  | — |  |  |  | (59 | )
|  |  | 26,495 |  |  |  | (21,560 | ) |  |  | 4,935 |  |  |  | 33,403 |  |  |  | (20,068 | ) |  |  | 13,335 |
Unamortized intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade names |  |  | 10,100 |  |  |  | N/A |  |  |  | 10,100 |  |  |  | 10,100 |  |  |  | N/A |  |  |  | 10,100 |
Accumulated impairment |  |  | (900 | ) |  |  | N/A |  |  |  | (900 | ) |  |  | (900 | ) |  |  | N/A |  |  |  | (900 | )
|  |  | 9,200 |  |  |  | N/A |  |  |  | 9,200 |  |  |  | 9,200 |  |  |  | N/A |  |  |  | 9,200 |
Total intangible assets |  | $ | 35,695 |  |  | $ | (21,560 | ) |  | $ | 14,135 |  |  | $ | 42,603 |  |  | $ | (20,068 | ) |  | $ | 22,535 |
During the fourth quarter of 2012, it was determined that certain developed technologies would no longer be offered for sale. As a result, we have impaired the entire remaining assets of $8.6 million, including $0.5 million of tangible assets, and accrued the estimated costs associated with a transition plan for all of the existing customers off of this platform of $1.1 million. During the second quarter of fiscal 2011, we concluded that certain software developed technology within HSG was no longer being sold. As a result we recorded an impairment charge of $0.1 million, which impacted HSG. During the fourth quarter of fiscal 2011, we concluded that it was no longer using certain indefinite-lived intangible assets related to an HSG trade name. Accordingly, we recorded an impairment charge of $0.9 million, which impacted HSG. The total asset impairments and related charges during fiscal 2012, 2011, and 2010 of $9.7 million, $1.0 million and $0.2 million, respectively, were classified within “Asset impairments and related charges” in our Consolidated Statements of Operations. Amortization expense relating to intangible assets was $1.2 million for the fiscal years ended March 31, 2012 and 2011 and $1.4 million for the fiscal year ended March 31, 2010. Amortization expense relating to developed technology software intangible assets was $1.7 million for the fiscal years ended March 31, 2012 and 2011, respectively, and $1.3 million for the fiscal year ended March 31, 2010, and is classified in Products cost of goods sold. The remaining estimated amortization expense relating to intangible assets is $1.9 million, $1.2 million and $0.9 million for fiscal 2013, 2014 and 2015, respectively. There is currently no amortization expense relating to intangibles for fiscal 2016 and 2017. Project expenditures not yet in use are not amortized until the underlying project is completed.

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- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6905597&loc=d3e13816-109267 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6905858&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 42, 43, 44, 45, 46, 47 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6905858&loc=d3e16373-109275 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6905858&loc=d3e16323-109275 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6905597&loc=d3e13854-109267 + Details
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