XML 26 R15.htm IDEA: XBRL DOCUMENT
v3.20.2

Identifiable Intangible Assets and Goodwill | 9 Months Ended
--- | ---
Sep. 30, 2020
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 acquisition of Brink Software Inc., the Drive-Thru Acquisition and the Restaurant Magic Acquisition, 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 ("R&D") costs. The technological feasibility of a software product is established when the Company has completed all planning, designing, coding, and testing activities necessary to establish that the software product meets its design specifications, including functionality, features, and technical performance requirements. Software development costs incurred after establishing the technological feasibility of 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 identifiable intangible assets are approximately $5.3 million and $2.5 million of costs related to software products that have not satisfied the general release threshold as of September 30, 2020 and December 31, 2019, respectively. These software products are expected to satisfy the general release threshold within the next 12 months. Software development costs capitalized during the three months ended September 30, 2020 and September 30, 2019 were $2.4 million and $0.7 million, respectively. Software development costs capitalized during the nine months ended September 30, 2020 and September 30, 2019 were $6.7 million and $2.3 million, respectively. Annual amortization, charged to cost of sales is computed using the straight-line method over the remaining estimated economic life of software products, generally three to five years. Amortization of capitalized software development costs from continuing operations for the three months ended September 30, 2020 and September 30, 2019 were $1.7 million and $0.5 million, respectively. Amortization of capitalized software development costs from continuing operations for the nine months ended September 30, 2020 and September 30, 2019 were $4.9 million and $1.5 million, respectively. For the three month period ended September 30, 2020, $1.6 million and $0.3 million of amortization of identifiable intangible assets was recorded in cost of service and amortization of intangible assets, respectively, compared to $0.7 million in cost of service for the three months ended September 30, 2019. For the nine month period ended September 30, 2020, $4.7 million and $0.7 million of amortization of identifiable intangible assets was recorded in cost of service and amortization of intangible assets, respectively, compared to $2.4 million in cost of service for the nine months ended September 30, 2019. There was no comparable amortization recorded in amortization of intangible assets for the three or nine months ended September 30, 2019. The components of identifiable intangible assets are:
(in thousands) | September 30, 2020 |  | December 31, 2019 |  |  |  | Estimated Useful Life
Acquired and internally developed software costs | $ | 40,011 |  |  | $ | 36,137 |  |  |  |  | 3 - 5 years
Customer relationships | 4,860 |  |  | 4,860 |  |  |  |  | 7 years
Non-competition agreements | 30 |  |  | 30 |  |  |  |  | 1 year
| 44,901 |  |  | 41,027 |  |  |  |  |
Less accumulated amortization | (17,806) |  |  | (12,389) |  |  |  |  |
| $ | 27,095 |  |  | $ | 28,638 |  |  |  |  |
Internally developed software costs not meeting general release threshold | 5,342 |  |  | 2,500 |  |  |  |  |
Trademarks, trade names (non-amortizable) | 1,810 |  |  | 1,810 |  |  |  |  |
| $ | 34,247 |  |  | $ | 32,948 |  |  |  |  |
The expected future amortization of intangible assets, assuming straight-line amortization of capitalized software development costs and acquisition related intangibles, excluding software costs not meeting the general release threshold, is as follows (in thousands):
2020, remaining | $ | 1,818 |
2021 | 6,808 |
2022 | 5,582 |
2023 | 3,581 |
2024 | 3,186 |
Thereafter | 6,120 |
Total | $ | 27,095 |
The Company operates in two reporting segments, Restaurant/Retail and Government, which are also the Company's identified reporting units for purposes of evaluating goodwill impairment. 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. Goodwill is assigned to a specific reporting unit at the date the goodwill is initially recorded; once assigned, goodwill no longer retains its association with a particular acquisition and all of the activities within the reporting unit, whether acquired organically or from a third-party, are available to support the value of the goodwill. The amount of goodwill carried by the Restaurant/Retail and Government segments were $41.2 million and $41.4 million at September 30, 2020 and December 31, 2019, respectively. The Company recognized additions to goodwill as part of the Drive-Thru Acquisition and the Restaurant Magic Acquisition as indicated in Note 3 - Acquisitions; in June 2020, a $0.2 million favorable working capital adjustment was recognized related to the Restaurant Magic Acquisition. No impairment charges were recorded for the periods ended September 30, 2020 or September 30, 2019.

X
- References No definition available. + 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 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
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration