GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2015

7.	GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill:


(in thousands)	2015
Balance as of January 1,	$	46,860
Translation adjustments		22

Balance as of June 30,	$	46,882

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
As of June 30, 2015
Customer related intangibles		4-9 years	$	49,601	$	(27,402	)	$	22,199
Technology		3-9 years		48,342		(31,580	)		16,762
Other intangibles		3 years		5,361		(4,903	)		458

Total			$	103,304	$	(63,885	)	$	39,419


(in thousands)	Range of Useful Lives		Cost		Accumulated Amortization			Net Book Value
As of 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

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


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2015		2014		2015		2014
Cost of revenue	$	1,347	$	1,444	$	2,690	$	3,284
Selling and marketing		1,534		1,499		3,065		2,995
General and administrative		238		481		502		901

Total amortization expense	$	3,119	$	3,424	$	6,257	$	7,180

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


(in thousands) as of June 30, 2015	Future estimated amortization expense
Remainder of 2015	$	5,954
2016		11,524
2017		9,826
2018		8,826
2019		3,034
2020 and thereafter		255

	$	39,419

- 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.

+ References + Details