GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2012

GOODWILL AND OTHER INTANGIBLE ASSETS

There were no changes in the carrying amount of goodwill during the first nine months of 2012.

Intangible assets are recorded at cost and are amortized using the straight-line method over their estimated useful life, which range from 5 to 9 years.


(in thousands)	Cost		Accumulated Amortization		Net Book Value
As of September 30, 2012

Customer related intangibles	$	44,355	$	(11,910)	$	32,445
Technology		43,446		(14,891)		28,555
Trade name		248		(248)		—
Technology designs		490		(490)		—
Non-compete agreements		100		(91)		9
Intellectual property		1,400		(1,400)		—

Total	$	90,039	$	(29,030)	$	61,009


	Cost		Accumulated Amortization		Net Book Value
As of December 31, 2011

Customer related intangibles	$	44,355	$	(8,214)	$	36,141
Technology		43,446		(10,269)		33,177
Trade name		248		(248)		—
Technology designs		490		(463)		27
Non-compete agreements		100		(76)		24
Intellectual property		1,400		(1,400)		—

Total	$	90,039	$	(20,670)	$	69,369

For the third quarter and first nine months of 2012 and 2011, amortization of intangibles was reflected in the Company’s unaudited condensed consolidated statements of income as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2012		2011		2012		2011
Cost of software license	$	1,541	$	1,571	$	4,649	$	4,713
Selling and marketing		1,232		1,232		3,696		3,696
General and administrative		5		5		15		98

Total amortization expense	$	2,778	$	2,808	$	8,360	$	8,507

Amortization of intangibles is estimated to be recorded over their remaining useful lives as follows:


(in thousands) As of September 30, 2012	Future estimated amortization expense
Remainder of 2012	$	2,777
2013		11,095
2014		9,489
2015		8,688
2016		8,688
2017		8,688
Thereafter		11,584

	$	61,009

- 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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