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SEC Filings

10-K
LIQUIDITY SERVICES INC filed this Form 10-K on 11/21/2014
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Table of Contents


Liquidity Services, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

6. Goodwill

        The goodwill of acquired companies is primarily related to the acquisition of an experienced and knowledgeable workforce. The following summarizes our goodwill activity for the periods indicated:

 
  Goodwill  
 
  (in thousands)
 

Balance at September 30, 2012

  $ 185,771  

New acquisitions

    27,009  

Translation adjustments

    (1,069 )
       

Balance at September 30, 2013

    211,711  

Translation adjustments

    (2,055 )
       

Balance at September 30, 2014

  $ 209,656  
       
       

        Accumulated goodwill impairment losses as of September 30, 2014, were $13.4 million and were the result of ceasing operations of the Company's business in the United Kingdom.

7. Intangible Assets

        Intangible assets at September 30, 2014 and September 30, 2013 consisted of the following:

 
   
  September 30, 2014   September 30, 2013  
 
  Useful
Life
(in years)
  Gross
Carrying
Amount
  Accumulated
Amortization
  Net
Carrying
Amount
  Gross
Carrying
Amount
  Accumulated
Amortization
  Net
Carrying
Amount
 
 
  (dollars in thousands)
 

Contract intangibles

    2 - 5   $ 33,300   $ (21,796 ) $ 11,504   $ 37,236   $ (16,696 ) $ 20,540  

Brand and technology

    3 - 5     5,947     (2,852 )   3,095     5,965     (1,666 )   4,299  

Covenants not to compete

    3 - 5     4,330     (2,245 )   2,085     4,440     (1,439 )   3,001  

Patent and trademarks

    3 - 10     672     (257 )   415     509     (144 )   365  
                                         

Total intangible assets, net

                    $ 17,099               $ 28,205  
                                         
                                         

        Future expected amortization of intangible assets at September 30, 2014 was as follows:

Years ending September 30,
  Amortization  
 
  (in thousands)
 

2015

  $ 8,378  

2016

    6,278  

2017

    1,435  

2018

    875  

2019 and after

    133  
       

Total

  $ 17,099  
       
       

        Amortization expense related to intangible assets for the years ended September 30, 2014, 2013 and 2012 was $10,972,000, $11,678,000, and $9,451,000, respectively.

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