XML 103 R14.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Goodwill and Intangible Assets | 12 Months Ended
--- | ---
Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill, Intangible Assets and Software Development Costs 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. Agilysys has one operating segment. We conducted our annual qualitative assessment (Step Zero Analysis) test on February 1, 2015 and 2014 to determine whether it would be necessary to perform the two-step goodwill impairment test. Among other things, we considered the i) excess in fair value of the reporting unit over its carrying amount from the most recent step one calculation, ii) macroeconomic conditions, iii) industry and market trends, and iv) overall financial performance. It was determined based on the Step Zero Analysis that it is more likely than not that the fair value of the operations exceeded its carrying amount. The changes in the carrying amount of goodwill for the years ended March 31, 2015 and 2014 are as follows:
(In thousands) |
Balance at March 31, 2013 | $ | 14,128 |
Acquisitions | 3,444 |
Impact of foreign currency translation | 196 |
Allocation of goodwill to UK entity | (610 | )
Balance at March 31, 2014 | 17,158 |
Acquisitions | 2,464 |
Balance at March 31, 2015 | $ | 19,622 |
Intangible Assets and Software Development Costs The following table summarizes our intangible assets at March 31, 2015, and 2014:
| 2015 |  | 2014
| Gross |  | Net |  | Gross |  | Net
| carrying | Accumulated | carrying |  | carrying | Accumulated | carrying
(In thousands) | amount | amortization | amount |  | amount | amortization | amount
Amortized intangible assets: |  |  |  |  |  |  |
Customer relationships | $ | 10,775 |  | $ | (10,775 | ) | $ | — |  |  | $ | 10,775 |  | $ | (10,080 | ) | $ | 695 |
Non-competition agreements | 2,700 |  | (2,700 | ) | — |  |  | 2,700 |  | (2,473 | ) | 227 |
Developed technology | 10,660 |  | (10,277 | ) | 383 |  |  | 10,660 |  | (10,156 | ) | 504 |
Trade names | 230 |  | (7 | ) | 223 |  |  | — |  | — |  | — |
Patented technology | 80 |  | (80 | ) | — |  |  | 80 |  | (80 | ) | — |
| 24,445 |  | (23,839 | ) | 606 |  |  | 24,215 |  | (22,789 | ) | 1,426 |
Unamortized intangible assets: |  |  |  |  |  |  |
Trade names | 9,200 |  | N/A |  | 9,200 |  |  | 9,200 |  | N/A |  | 9,200 |
Accumulated impairment | (570 | ) | N/A |  | (570 | ) |  | — |  | N/A |  | — |
Finite life reclassification | (230 | ) | N/A |  | (230 | ) |  | — |  | N/A |  | — |
| 8,400 |  | N/A |  | 8,400 |  |  | 9,200 |  | N/A |  | 9,200 |
Total intangible assets | $ | 32,845 |  | $ | (23,839 | ) | $ | 9,006 |  |  | $ | 33,415 |  | $ | (22,789 | ) | $ | 10,626 |
Software development costs | $ | 6,359 |  | $ | (1,443 | ) | $ | 4,916 |  |  | $ | 5,094 |  | $ | (270 | ) | $ | 4,824 |
Project expenditures not yet in use | 28,293 |  | — |  | 28,293 |  |  | 12,397 |  | — |  | 12,397 |
Accumulated impairment | (1,391 | ) | N/A |  | (1,391 | ) |  | — |  | N/A | — |
Total software development costs | $ | 33,261 |  | $ | (1,443 | ) | $ | 31,818 |  |  | $ | 17,491 |  | $ | (270 | ) | $ | 17,221 |
Indefinite-lived intangible assets, comprised of two purchased trade names InfoGenesis™ and Eatec®, are tested for impairment upon identification of impairment indicators, or at least annually. An impairment loss is recognized if the carrying amount is greater than fair value. The income approach using "the relief from royalty method" was used to value the trade names as of February 1, 2015 and 2014. This methodology assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to exploit the related benefits of these types of assets. This approach is dependent on a number of factors, including estimates of future cash flows, royalty rates, discount rates and other variables. During the fourth quarter of fiscal 2015, certain restructuring activities incurred to better align product development, sales and marketing and general and administrative functions impacted the expected remaining useful life of the products under the Eatec® trade name. The trade name was determined to have a finite life and subsequently written down to its fair value to be amortized over five years. The fair value of this trade name was calculated based on future cash flows over the remaining useful life resulting in an impairment charge of $0.6 million as of March 31, 2015. This charge is classified within "Asset write-offs and other fair value adjustments" in the Consolidated Statements of Operations. The InfoGenesis™ indefinite-lived purchased trade name was tested for impairment as of February 1, 2015 and 2014, resulting in a fair value exceeding the carrying amount each year. At each balance sheet date, the unamortized capitalized software development costs for external use is compared to the net realizable value of that product. The amount by which unamortized software costs exceeds the net realizable value, if any, is recognized as a charge to income in the period it is determined. As of March 31, 2015, we determined that the remaining net book value of our InfoGenesis Mobile (IG Mobile) software exceeded its net realizable value resulting in an impairment charge of $1.4 million. This charge is classified within "Asset write-offs and other fair value adjustments" in the Consolidated Statements of Operations. The following table summarizes our remaining estimated amortization expense relating to in service intangible assets.
| Estimated
| Amortization
(In thousands) | Expense
Fiscal year ending March 31, |
2016 | $ | 1,068 |
2017 | 1,067 |
2018 | 1,067 |
2019 | 844 |
2020 | 85 |
Total | $ | 4,131 |
Amortization expense related to software development costs related to assets to be sold, leased, or otherwise marketed was $1.3 million, $0.3 million and $0.8 million for the fiscal years ended March 31, 2015, 2014 and 2013, respectively. These charges are included as Products cost of goods sold within the Consolidated Statements of Operations. Amortization expense relating to other definite-lived intangible assets was $0.9 million, $1.2 million, and $1.2 million for the fiscal years ended March 31, 2015, 2014 and 2013, respectively. These charges are classified as operating expenses within the Consolidated Statements of Operations. Capitalized software development costs are carried on our balance sheet at net realizable value, net of accumulated amortization. We capitalized approximately $17.2 million, $13.7 million and $4.9 million during fiscal 2015, 2014 and 2013, respectively.

X
- Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275 Reference 2: 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=35741047&loc=d3e13816-109267 Reference 3: 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=26713463&loc=d3e16265-109275 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=26713463&loc=d3e16373-109275 Reference 5: 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=35741047&loc=d3e13854-109267 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration