Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets finite life

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Intangible Assets finite life
 3 Months Ended
Dec. 31, 2011
Intangible Assets - finite life [Abstract]  
Intangible Assets - finite life
10. Intangible Assets – finite life

As of December 31, 2011
(In Thousands)
  
Cost
    
Accumulated
Amortization and
Impairment
    
Net
Book Value
  
                   
Non-Compete
   $ 89     $ 28     $ 61  
Customer Relationships
     2,913       391       2,522  
Management Agreement
     1,396       1,396       -  
Trade Name
     17       1       16  
                         
    $ 4,415     $ 1,816     $ 2,599  

As of September 30, 2011
(In Thousands)
  
Cost
    
Accumulated
 Amortization and
Impairment
    
Net
Book Value
  
                   
Non-Compete
   $ 89     $ 24     $ 65  
Customer Relationships
     2,913       296       2,617  
Management Agreement
     1,396       1,396       -  
Trade Name
     17       -       17  
                         
    $ 4,415     $ 1,716     $ 2,699  

Finite life intangible assets are comprised of a non-compete agreement, management agreement, trade name and customer relationships.  The non-compete agreement and trade name are amortized on a straight – line basis over the estimated useful lives of 5 years.  The customer relationships are amortized based on the future undiscounted cash flows over estimated remaining useful lives of three to 10 years.  The management agreement intangible was being amortized over the five year term of the agreement.  Over the next five years, annual amortization expense for these finite life intangible assets will be $394,000 in fiscal 2012, $376,000 in fiscal 2013, $359,000 in fiscal 2014, $340,000 in fiscal 2015 and $1,230,000 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.
 
The Company recorded an impairment charge of $1,126,000 in September 2011 for the remaining unamortized amount of the Management Services Agreement intangible asset.  The impairment charge represents the difference between the fair value and the carrying value of the intangible asset.  No future cash flows associated with the Management Services Agreement are expected as the management agreement was effectively terminated as a result of the managed entity, RFFG, LLC, ceasing operations in July 2011.