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42
6. Goodwill and Intangible Assets
The following table presents the changes in the carrying amount of goodwill by segment during
the year ended December 31, 2006 (in thousands):
Public
Sector Berbee Total
Balance as of January 1, 2006 $ - $ - $ -
Acquisition of businesses 1,944 117,547 119,491
Balance as of December 31, 2006 $ 1,944 $ 117,547 $ 119,491
The goodwill assigned to the Berbee segment resulted from the acquisition of Berbee in October
2006, as described in Note 3. The goodwill assigned to the public sector segment resulted from
the acquisition of Technology Resource Center, Inc., an education software reseller, in July 2006,
for a total purchase price of $3.2 million.
The following table presents a summary of intangible assets at December 31, 2006 and 2005 (in
thousands):
Gross
Carrying
Amount
Accumulated
Amortization Net
December 31, 2006
Customer relationships $ 56,760 $ 3,984 $ 52,776
Packaged technology 5,000 184 4,816
License agreement 3,000 55 2,945
Trade name 3,000 331 2,669
Other 1,175 778 397
Total $ 68,935 $ 5,332 $ 63,603
December 31, 2005
Customer relationships $ 6,205 $ 2,097 $ 4,108
Other 1,175 516 659
Total $ 7,380 $ 2,613 $ 4,767
Amortization expense related to intangible assets for the years ended December 31, 2006, 2005,
and 2004 was $2.7 million, $1.1 million, and $1.2 million, respectively.
Estimated amortization expense related to intangible assets for the next five years is as follows
(in thousands):
Years Ended December 31, Amount
2007 $ 8,041
2008 7,634
2009 6,305
2010 6,089
2011 5,440
Total $ 33,509