Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill represents the excess of the fair value of the consideration transferred over the value of net tangible and identifiable intangible assets of acquired businesses. Identifiable intangible assets acquired in business combinations are recorded based upon their fair values on the date of acquisition.

During the first quarter of 2012, the Company completed the annual impairment test for goodwill and indefinite-lived intangible assets and determined that these assets had not been impaired as of the test date, January 1, 2012. The Company performed a qualitative assessment to test goodwill for impairment, and as of the test date, there was sufficient evidence that it was not more likely than not that the fair values of its reporting units were less than their carrying amounts.

The Company tested the indefinite-lived intangible assets utilizing estimated cash flow methodologies and market-based information to estimate the fair value of the assets, and determined the assets were not impaired as of the test date.

No events occurred or circumstances changed during the year ended December 31, 2012 that would indicate that the fair values of the Company’s reporting units and indefinite-lived intangible assets are below their carrying amounts.

As of December 31, 2012 and December 31, 2011, the Company’s intangible assets and estimated useful lives are classified as follows:



	December 31, 2012					December 31, 2011
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Developed software and core technologies (7 – 10 years)	$	298,802	$	(175,988	)	$	287,392	$	(144,836	)
Customer lists and contract backlog (3 – 15 years)	241,721		(100,702		)	223,037		(76,630		)
Trade names (6 – 10 years)	102,629		(40,436		)	102,580		(30,380		)
Total	$	643,152	$	(317,126	)	$	613,009	$	(251,846	)
Unamortized intangible assets:
Trade names	$	25,147				$	22,257

The increase in the intangible assets reflected above was due to the August 1, 2012 acquisition of Esterel. Amortization expense for the intangible assets reflected above was $67.3 million, $51.7 million and $48.7 million for the years ended December 31, 2012, 2011 and 2010, respectively.

As of December 31, 2012, estimated future amortization expense for the intangible assets reflected above is as follows:



(in thousands)
2013	$	59,952
2014	53,832
2015	50,232
2016	43,079
2017	39,483
Thereafter	79,448
Total intangible assets subject to amortization	326,026
Indefinite-lived trade names	25,147
Other intangible assets, net	$	351,173

The changes in goodwill during the years ended December 31, 2012 and 2011 are as follows:



	Year Ended December 31,
(in thousands)	2012		2011
Beginning balance – January 1, 2012	$	1,225,375	$	1,035,083
Acquisitions of Esterel and Apache, respectively	20,866		190,947
Currency translation and other	5,006		(655		)
Ending balance – December 31, 2012	$	1,251,247	$	1,225,375

- 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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