GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2014

9.	GOODWILL AND OTHER INTANGIBLE ASSETS

As discussed in Note 18 “Geographic Information and Major Clients”, the Company operates in one reportable segment, Digital Enterprise Business Solutions, and has one reporting unit.

The following table presents the changes in the carrying amount of goodwill:


	Year Ended December 31,
(in thousands)	2014			2013		2012
Balance as of January 1,	$	43,469		$	20,451	$	20,451
Purchase price adjustments to goodwill retroactively applied (1)		—			6,006		—
Goodwill acquired during the year		3,431			17,012		—
Translation adjustments		(40	)		—		—

Balance as of December 31,	$	46,860		$	43,469	$	20,451

(1)	The purchase price adjustments identified during 2014 have been retroactively applied as of December 31, 2013.

Intangible assets are recorded at cost and are amortized using the straight-line method over their estimated useful lives.


(in thousands)	Range of Useful Lives		Cost		Accumulated Amortization			Net book value
December 31, 2014
Customer related intangibles		4-9 years	$	49,590	$	(24,338	)	$	25,252
Technology		3-9 years		48,342		(28,890	)		19,452
Other intangibles		1-3 years		5,361		(4,401	)		960

Total			$	103,293	$	(57,629	)	$	45,664

December 31, 2013
Customer related intangibles		4-9 years	$	48,634	$	(18,317	)	$	30,317
Technology		3-9 years		47,102		(22,873	)		24,229
Other intangibles		1-5 years		4,658		(2,630	)		2,028

Total			$	100,394	$	(43,820	)	$	56,574

Amortization expense of acquired intangibles was reflected in the Company’s consolidated statements of operations as follows:


	Year Ended December 31,
(in thousands)	2014		2013		2012
Amortization expense:
Cost of revenue	$	6,017	$	6,443	$	6,189
Selling and marketing		6,022		5,174		4,928
General and administrative		1,770		396		20

Total amortization expense	$	13,809	$	12,013	$	11,137

As of December 31, 2014, future estimated amortization expense is as follows:


(in thousands)	Future estimated amortization expense
2015	$	12,210
2016		11,523
2017		9,824
2018		8,825
2019 and thereafter		3,282

	$	45,664

- 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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