Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

The components of our amortizable intangible assets were as follows:



(In millions)	Trade Names			Software			Customer Relationships			Other			Total
September 30, 2013
Gross carrying amount	$	33.9		$	58.6		$	20.5		$	26.7		$	139.7
Accumulated amortization	(7.9		)	(53.1		)	(1.9		)	(5.9		)	(68.8		)
Intangible assets, net	$	26.0		$	5.5		$	18.6		$	20.8		$	70.9
December 31, 2012
Gross carrying amount	$	37.7		$	58.4		$	21.2		$	26.8		$	144.1
Accumulated amortization	(6.0		)	(52.0		)	(1.0		)	(3.2		)	(62.2		)
Intangible assets, net	$	31.7		$	6.4		$	20.2		$	23.6		$	81.9

Other net intangible assets as of September 30, 2013 consists primarily of $18.8 million of developed technology.

Amortization expense for intangible assets consisted of the following:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2013		2012		2013		2012
Amortization expense	$	3.4	$	7.2	$	10.3	$	21.7

Based on the intangible assets in service as of September, 2013, estimated amortization expense for the remainder of 2013 and each of the next five years is as follows:



(In millions)	2013 (Remainder)		2014		2015		2016		2017		2018
Amortization expense	$	3.8	$	12.7	$	11.2	$	9.2	$	8.2	$	6.5

Goodwill

During the nine months ended September 30, 2013, we recorded a decrease in goodwill of $1.6 million due to the working capital adjustment to the Nexsan acquisition purchase price. Additionally, goodwill decreased $0.2 million due to foreign currency translation. See Note 4 - Acquisitions and Divestitures for further information regarding the Nexsan acquisition and this adjustment.

We test the carrying amount of a reporting unit's goodwill for impairment on an annual basis during the fourth quarter of each year and if an event occurs or circumstances change that would warrant impairment testing during an interim period. Through September 30, 2013, our actual 2013 results for the Mobile Security reporting unit are lower than originally planned, primarily because of factors that we believe are short-term and temporary in nature. Despite the lower than anticipated results for 2013, we currently do not believe there are significant changes to the longer-term cash flow projections for the Mobile Security reporting unit. Our internal business plan associated with Mobile Security is being updated during the fourth quarter of 2013. While we presently believe our longer-term forecasts associated with Mobile Security have not been negatively impacted compared to previous projections, it is reasonably possible that, upon the completion of our fourth quarter 2013 internal business plan update, we may incur an impairment charge related to goodwill in the Mobile Security reporting unit. The Mobile Security reporting unit contains $8.0 million of goodwill as of September 30, 2013.

- 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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