7.	GOODWILL AND INTANGIBLE ASSETS:

The changes in the carrying amount of goodwill are as follows:

 

		Goodwill
		(In Thousands)
Balance at January 1, 2012		$	12,049
Adjustments to goodwill in 2012			-
Balance at December 31, 2012			12,049
Adjustments to goodwill in 2013			-
Balance at December 31, 2013		$	12,049

Cumulative goodwill impairment charges of $54.6 million (related to impairments recognized in 2002 and 2008) are reflected in the ending goodwill balance at December 31, 2013.

 

As of December 31, 2013, the net carrying amount of intangible assets consists of amounts related to business combination transactions consummated by the Company in 2009 and 2010 and capitalized internally developed software costs.

Other net intangibles amounted to $956 thousand and $1.2 million as of December 31, 2013 and 2012, respectively. Below is a summary of the Company’s identifiable intangible assets that are subject to amortization:

 

		December 31, 2013
		Gross Carrying Amount				Impairment Charges				Accumulated Amortization				Net Carrying Amount
		(In Thousands)
Identifiable intangibles:
Non-compete agreements		$	3,860			$	-			$	3,634			$	226
Customer relationships			10,378				-				10,239				139
Asset purchase agreement			1,400				-				1,400				-
Trade name and trademark			600				-				586				14
Capitalized product development costs			1,099				-				522				577
		$	17,337			$	-			$	16,381			$	956

 

		December 31, 2012
		Gross Carrying Amount				Impairment Charges				Accumulated Amortization				Net Carrying Amount
		(In Thousands)
Identifiable intangibles:
Non-compete agreements		$	3,860			$	-			$	3,434			$	426
Customer relationships			10,378				-				10,065				313
Asset purchase agreement			1,400				-				1,400				-
Trade name and trademark			600				-				554				46
Capitalized product development costs			603				-				194				409
		$	16,841			$	-			$	15,647			$	1,194

The intangible assets were identified and valued by the Company. The original estimated useful lives of the acquired identifiable intangible assets are as follows:

 

Non-compete agreements		4 to 5 years
Customer relationships		4 to 7.5 years
Asset purchase agreement		1.5 years
Trade name and trademark		5 years
Capitalized product development costs		3 years

Intangible assets are amortized assuming no expected residual value over the periods in which the economic benefit of these assets is consumed. The weighted average amortization period for all intangible assets subject to amortization was 1.5 years, 2.5 years and 3.0 years as of December 31, 2013, 2012 and 2011, respectively. Amortization expense related to all intangible assets was $738 thousand, $1.1 million and $2.0 million in 2012, 2011 and 2010, respectively.

 

Amortization of $327 thousand, $156 thousand and $39 thousand related to capitalized software development costs were included within cost of revenue (specifically within software expense) on the consolidated statements of comprehensive income for the year ended December 31, 2013, 2012 and 2011, respectively.

Estimated annual amortization expense for the next five years ending December 31, which encompasses the remaining useful life of the intangible assets, is as follows:

 

		Amortization Expense
		(In Thousands)
2014		$	470
2015			266
2016			174
2017			46
2018			-