Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets finite life

 v2.3.0.11
Intangible Assets finite life
 9 Months Ended
Jun. 30, 2011
Intangible Assets finite life [Abstract]  
Intangible Assets finite life
11. Intangible Assets – finite life

As of June 30, 2011
 
(In thousands)
  
Cost
    
Accumulated
Amortization
    
Net Book
Value
  
                   
Non-Compete Agreement
   $ 89     $ 19     $ 70  
Customer Relationships
     2,336       221       2,115  
Management Agreement
     1,396       216       1,180  
                         
    $ 3,821     $ 456     $ 3,365  
 
Finite life intangible assets are comprised of a non-compete agreement, the Management Agreement and customer relationships.  The non-compete agreement is amortized on a straight – line basis over its estimated life of 5 years.  The customer relationships are amortized based on the estimated future undiscounted cash flows over ten years.  The Management Agreement is amortized over four years based on the estimated future undiscounted cash flows.  The future amortization expense for these finite life intangibles is as follows:  $194,000 for 2011, $615,000 in 2012, $615,000 in 2013, $616,000 in 2014, $222,000 in 2015, and $1,103,000 thereafter.

Long-lived assets, such as purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates, regularly, whether events and circumstances have occurred that indicate possible impairment and relies on a number of factors, including operating results, business plans, economic projections, and anticipated future cash flows. The Company uses an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether the assets are recoverable.