XML 21 R10.htm IDEA: XBRL DOCUMENT
v3.8.0.1

NOTE 5 - GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended
--- | ---
Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 5 – GOODWILL AND OTHER INTANGIBLE ASSETS We accounted for our historical acquisitions in accordance with ASC 805, Business Combinations. We recorded the amount exceeding the fair value of net assets acquired at the date of acquisition as goodwill. We recorded intangible assets apart from goodwill if the assets had contractual or other legal rights or if the assets could be separated and sold, transferred, licensed, rented or exchanged. Our goodwill relates to the following acquisitions: ADI and Legiant in 2011, PeopleCube in 2012, FotoPunch and Roomtag in 2014, Mangrove in 2016, PMSI, CPI and PSNW in January 2017, iSystems and Compass in May 2017, ADS in October 2017, and TelePayroll, Pay Systems, and Savers Admin in January 2018. In accordance with ASC 350, Intangibles-Goodwill and Other, we review and evaluate our long-lived assets, including intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that we may not recover their net book value. We test goodwill for impairment on an annual basis in the fourth fiscal quarter of each year, and between annual tests, if indicators of potential impairment exist, using a fair-value-based approach. There has been no impairment of goodwill for the periods presented. We amortize intangible assets not considered to have an indefinite useful life using the straight-line method over their estimated period of benefit, which generally ranges from one to nine years. Each reporting period, we evaluate the estimated remaining useful life of intangible assets and assess whether events or changes in circumstances warrant a revision to the remaining period of amortization or indicate that impairment exists. We have not identified any impairments of finite-lived intangible assets during any of the periods presented. The following table summarizes the changes in our goodwill:
Balance at December 31, 2017 |  | $ | 77,348 |
Goodwill recognized upon acquisitions of Telepayroll, Pay Systems and Savers Admin |  |  | 13,566 |
Adjustment to Goodwill associated with acquisitions of Compass, ADS, iSystems and PMSI |  |  | 81 |
Foreign exchange adjustment to goodwill |  |  | 3 |
Balance at March 31, 2018 |  | $ | 90,998 |
The gross carrying amount and accumulated amortization of our intangible assets as of March 31, 2018 and December 31, 2017 are as follows:
|  |  |  |  | March 31, 2018 |
Intangible Assets |  | Weighted Average Amortization Period (in Years) |  |  | Gross |  |  | Accumulated Amortization |  |  | Net |
Developed Technology |  |  | 6.7 |  |  | $ | 11,925 |  |  | $ | (5,446 | ) |  | $ | 6,479 |
Customer Relationships |  |  | 9.4 |  |  |  | 52,896 |  |  |  | (14,394 | ) |  |  | 38,502 |
Reseller Relationships |  |  | 7.00 |  |  |  | 853 |  |  |  | (792 | ) |  |  | 61 |
Trade Names |  |  | 11.4 |  |  |  | 3,765 |  |  |  | (953 | ) |  |  | 2,812 |
Noncompete |  |  | 5.1 |  |  |  | 1,022 |  |  |  | (211 | ) |  |  | 811 |
|  |  | 8.9 |  |  | $ | 70,461 |  |  | $ | (21,796 | ) |  | $ | 48,665 |
|  |  |  |  | December 31, 2017 |
Intangible Assets |  | Weighted Average Amortization Period (in Years) |  |  | Gross |  |  | Accumulated Amortization |  |  | Net |
Developed Technology |  |  | 6.7 |  |  | $ | 11,925 |  |  | $ | (5,010 | ) |  | $ | 6,915 |
Customer Relationships |  |  | 9.5 |  |  |  | 37,096 |  |  |  | (13,142 | ) |  |  | 23,954 |
Reseller Relationships |  |  | 7.0 |  |  |  | 853 |  |  |  | (761 | ) |  |  | 92 |
Trade Names |  |  | 10.4 |  |  |  | 2,915 |  |  |  | (884 | ) |  |  | 2,031 |
Noncompete Agreements |  |  | 6.1 |  |  |  | 692 |  |  |  | (130 | ) |  |  | 562 |
|  |  | 8.8 |  |  | $ | 53,481 |  |  | $ | (19,927 | ) |  | $ | 33,554 |
We record amortization expenses using the straight-line method over the estimated useful lives of the intangible assets, as noted above. Amortization expenses for the three months ended March 31, 2018 and 2017 were $1,597 and $847, respectively, included in Operating Expenses. Amortization expenses recorded in Cost of Sales were $297 and $106 for the three months ended March 31, 2018 and 2017, respectively. The following table summarizes the future estimated amortization expense relating to our intangible assets as of March 31, 2018:
Calendar Years |  |  |
2018 (April to December) |  | $ | 5,542 |
2019 |  |  | 6,697 |
2020 |  |  | 5,862 |
2021 |  |  | 5,420 |
2022 |  |  | 5,328 |
2023 |  |  | 4,496 |
Thereafter |  |  | 15,320 |
|  | $ | 48,665 |

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