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Identifiable Intangible Assets and Goodwill | 9 Months Ended
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Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
Identifiable Intangible Assets and Goodwill | Identifiable Intangible Assets and Goodwill Identifiable intangible assets represent intangible assets acquired by the Company in connection with its acquisitions of Brink Software Inc. in 2014 ("Brink Acquisition"), the 3M Transaction, and software development costs. The Company capitalizes certain software development costs for software used in its Restaurant/Retail reporting segment. Software development costs incurred prior to establishing technological feasibility are charged to operations and included in research and development costs. The technological feasibility of a software product is established when the Company has completed all planning, designing, coding, and testing activities that are necessary to establish that the software product meets its design specifications, including functionality, features, and technical performance requirements. Software development costs incurred after establishing technological feasibility for software sold as a perpetual license, as defined within ASC 985-20, Software – Costs of Software to be sold, Leased, or Marketed, are capitalized and amortized on a product-by-product basis when the software product is available for general release to customers. Included in "Acquired and internally developed software costs" in the table below is approximately $3.8 million and $3.0 million of costs related to software products that have not satisfied the general release threshold as of September 30, 2019 and December 31, 2018, respectively. These software products are expected to satisfy the general release threshold within the next 12 months. Software development costs are also capitalized in accordance with ASC 350-40, “Intangibles - Goodwill and Other - Internal - Use Software,” and are amortized over the expected benefit period, which generally ranges from three to five years. Software development costs capitalized during the three and nine months ended September 30, 2019 were $0.7 million and $2.3 million, respectively. Software development costs capitalized during the three and nine months ended September 30, 2018 were $1.0 million and $3.1 million, respectively. Annual amortization, charged to cost of sales is computed using the straight-line method over the remaining estimated economic life of the product, generally three to five years. Amortization of capitalized software development costs from continuing operations for the three and nine months ended September 30, 2019 were $0.5 million and $1.5 million, respectively. Amortization of capitalized software development costs from continuing operations for the three and nine months ended September 30, 2018 were $0.9 million and $2.6 million, respectively. Amortization of intangible assets acquired in the Brink Acquisition amounted to $0.2 million and $0.7 million, respectively, for each of the three and nine month periods ended September 30, 2019 and 2018. Certain intangible assets were acquired on September 30, 2019 in connection with the 3M acquisition, and as a result no amortization expense was taken on these intangibles for the period ended September 30, 2019. The components of identifiable intangible assets are (in thousands):
| September 30, 2019 |  | December 31, 2018 |  | Estimated Useful Life
Acquired and internally developed software costs | $ | 15,103 |  |  | $ | 18,972 |  |  | 3 - 5 years
Customer relationships | 3,760 |  |  | 160 |  |  | 7 years
Non-competition agreements | 30 |  |  | 30 |  |  | 1 year
| 18,893 |  |  | 19,162 |  |  |
Less accumulated amortization | (9,755 | ) |  | (11,708 | ) |  |
| $ | 9,138 |  |  | $ | 7,454 |  |  |
Internally developed software costs not meeting general release threshold | 3,847 |  |  | 3,005 |  |  |
Trademarks, trade names (non-amortizable) | 910 |  |  | 400 |  |  | N/A
| $ | 13,895 |  |  | $ | 10,859 |  |  |
The expected future amortization of intangible assets, assuming straight-line amortization of capitalized software development costs and acquisition related intangibles, is as follows (in thousands):
2019, remaining | $ | 830 |
2020 | 2,889 |
2021 | 2,068 |
2022 | 1,002 |
2023 | 754 |
Thereafter | 1,595 |
Total | $ | 9,138 |
The Company tests goodwill for impairment on an annual basis, or more often if events or circumstances indicate that there may be impairment of goodwill. The Company operates in two reporting segments, Restaurant/Retail and Government. Goodwill impairment testing is performed at the reporting unit level. Goodwill is assigned to a specific reporting unit at the date the goodwill is initially recorded. Once goodwill has been assigned to a specific reporting segment, it no longer retains its association with a particular acquisition, and all of the activities within the reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. The amount of goodwill carried by the Restaurant/Retail and Government reporting segments was $13.4 million and $11.1 million at September 30, 2019 and December 31, 2018, respectively. The Company recognized additions to goodwill as part of the 3M acquisition as indicated in Note 3. No impairment charges were recorded for the period ended September 30, 2019 and year ended December 31, 2018. Approximately $2.8 million in net software costs were reclassified on the balance sheet to "Asset held for sale" as indicated in Note 4 during the second quarter of 2019.
(in thousands) |  | Goodwill
December 31, 2018 |  | $ | 11,051 |
Additions |  |  | 2,367 |
September 30, 2019 |  | $ | 13,418 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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