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66
goodwill, will be updatedas additionalinformation becomes available. We did not present proforma
information as these acquisitions were immaterial to our financial position and results of operations.
In fiscal 2007 we paid theformershareholders of ValuSoft additionalconsideration of $1.8 million for
reaching certainpre-taxincometargets pursuant to the purchase agreement. In 2002,weacquired
ValuSoft, Inc. for a total cost of $14.2 million, which was paid primarily in cash. In addition, we have since
paid theformer shareholders of ValuSoft additional consideration in the amount of $9.2 million because
ValuSoft reached certain pre-tax incometargets in the four years subsequent to the acquisition. They are
still eligible for additional consideration of up to $1.8 million, which may be paid by us in cash or stock,if
they reach certain pre-tax income targets in the last annual period ending on June 30, 2007. Anyadditional
consideration determined to be payable will increase goodwill in theperiod such pre-tax income targetsare
reached. Goodwill recognized in the originaltransaction andin thepayments of theadditional
considerationhas amounted to $21.2 million and is expected to be deductibleforincome taxpurposes.
6. Goodwill
Thechanges in the carrying amount of goodwill for thefiscal years ended March 31,2007 and 2006 were as
follows (inthousands):
BalanceatMarch31,2005...........................................$83,440
Goodwill acquired................................................4,801
Additional considerationpaidforValuSoft ..........................2,800
Effect of foreign currencyexchangeratesandother. ..................(169)
BalanceatMarch31,2006...........................................90,872
Sale of 50%interest in Minick Holdings AG (“Minick”)...............(9,598)
Goodwill acquired................................................3,753
Additional considerationpaidforValuSoft ..........................1,800
Effect of foreign currencyexchangeratesandother. ..................1,861
BalanceatMarch31,2007...........................................$88,688
We performed an annual review of goodwill impairment in each of thefiscal years endedMarch 31, 2007,
2006 and 2005 and found no impairment.
7. Other Intangible Assets
Intangible assetsincludelicenses, software developmentandotherintangible assets.Intangibleassets are
included in other long-term assets, net, except licenses and software development, which arereported
separately in the consolidated balance sheets. Other intangible assets are as follows(in thousands):
March 31, 2007 March 31, 2006
Useful
Lives
Gross
Carrying
Amount
Accumulated
Amortization
Net
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Amount
Softwaretechnology. .. 2-3 years $ 953$(715)$238$3,055 $(2,085) $970
Tradesecrets. ........ 5years1,800 (1,800) —1,800 (1,530) 270
Customer list.........4-5 years— ——1,414(550) 864
Trade names......... 3-10 years 2,100(922) 1,1783,196 (739) 2,457
Non-compete /
Employment
contracts .......... 1-6.5 years 1,048(828) 2201,055 (656) 399
Total ................$5,901$(4,265)$1,636$10,520$(5,560)$4,960