Mercury Insurance 2009 Annual Report Download - page 105

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MERCURY GENERAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(1) Excludes intercompany transactions with the Company’s insurance subsidiaries.
(2) Includes net premiums earned, net investment income, net realized investment gains/losses and commission
revenues.
(3) 2008 pro forma net income for the combined entity is not available as AIS was previously consolidated into
its parent company and separate financial statements were not available.
9. Goodwill and Other Intangible Assets
Goodwill
The changes in the carrying amount of goodwill for the year ended December 31, 2009 are as follows
(amounts in thousands):
Balance as of January 1 ...................................................... $41,557
Purchase price adjustments ............................................... 1,293
Balance as of December 31 ................................................... $42,850
There were no changes in the carrying amount of goodwill for the year ended December 31, 2009 except the
purchase price adjustments which were the result of additional information obtained in conjunction with the
finalization of the purchase price allocation as of March 31, 2009. Goodwill is reviewed for impairment on an
annual basis and between annual tests if potential impairment indicators exist. No impairment indications were
identified during any of the periods presented.
Other Intangible Assets
The following table reflects the components of intangible assets as of December 31, 2009. There were no
intangible assets as of December 31, 2008.
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
(Amounts in thousands)
Customer relationships ..................................... $51,640 $(4,872) $46,768
Trade names ............................................. 15,400 (642) 14,758
Software and technology .................................... 4,850 (705) 4,145
Favorable leases .......................................... 1,725 (573) 1,152
$73,615 $(6,792) $66,823
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