Long-Lived Assets

9 Months Ended

Sep. 30, 2013

7. LONG-LIVED ASSETS

Goodwill. The changes in the carrying amount of goodwill for the nine months ended September 30, 2013, were as follows (in thousands):

January 1, 2013 balance	$	233,365
Adjustments related to prior acquisitions		(149	)
Adjustment for the disposition of business operations		(1,417	)
Effects of changes in foreign currency exchange rates		(564	)
September 30, 2013 balance	$	231,235

On July 1, 2013, we sold one of our small print and mail facilities and certain of its business operations, which resulted in an adjustment to our goodwill balance of $1.4 million. The net proceeds from this disposition were $1.7 million and the gain from the sale was not material.

Other Intangible Assets. Our intangible assets subject to ongoing amortization consist primarily of client contracts and software. As of September 30, 2013 and December 31, 2012, the carrying values of these assets were as follows (in thousands):

	September 30, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Amount		Gross Carrying Amount		Accumulated Amortization			Net Amount
Client contracts	$	135,324	$	(74,137	)	$	61,187	$	257,485	$	(182,182	)	$	75,303
Software		118,205		(77,106	)		41,099		106,868		(68,496	)		38,372
Total	$	253,529	$	(151,243	)	$	102,286	$	364,353	$	(250,678	)	$	113,675

The decrease in the gross carrying amount and accumulated amortization of our client contracts between December 31, 2012 and September 30, 2013 is due primarily to the removal of fully-amortized assets related to client incentives for the Comcast Corporation (“Comcast”) and Time Warner Cable, Inc. (“Time Warner”) contracts that came to end of term during the first quarter of 2013.

The total amortization expense related to intangible assets for the third quarters of 2013 and 2012 were $9.1 million and $11.5 million, respectively, and for the nine months ended September 30, 2013 and 2012 were $26.6 million and $31.2 million, respectively. Based on the September 30, 2013 net carrying value of our intangible assets, the estimated total amortization expense for each of the five succeeding fiscal years ending December 31 are: 2013 – $35.0 million; 2014 – $28.6 million; 2015 – $17.7 million; 2016 – $13.2 million; and 2017 – $10.6 million.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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