GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2013

NOTE 4: GOODWILL AND INTANGIBLE ASSETS

The change in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 was as follows:

	Technology		Bankruptcy and Settlement Administration		Total

	(in thousands)
Balance as of December 31, 2011	$	187,773	$	214,963	$	402,736
Purchase price adjustments		1,276		—		1,276
Foreign currency translation and other		199		—		199


Balance as of December 31, 2012	$	189,248	$	214,963	$	404,211
Foreign currency translation and other		91		—		91


Balance as of December 31, 2013	$	189,339	$	214,963	$	404,302

During 2012 we increased goodwill recorded in connection with our acquisition of De Novo Legal LLC ("De Novo") by $1.3 million. This adjustment was based on information obtained after December 31, 2011, related to the results of an independent valuation of the fair value of De Novo's property, plant and equipment

Identifiable intangible assets as of December 31, 2013 and 2012 consisted of the following:

	December 31, 2013				December 31, 2012

	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
	(in thousands)
Amortizing intangible assets:
Customer relationships	$	124,512	$	90,274	$	124,512	$	73,713
Trade names		6,591		2,481		6,591		1,650
Non-compete agreements		18,947		16,178		18,947		14,736


Total	$	150,050	$	108,933	$	150,050	$	90,099

Customer relationships, non-compete agreements and trade names carry a weighted average life of seven years, five years and eight years, respectively.

During the second quarter of 2012 the remaining useful life of the AACER® trade name was evaluated to determine whether events and circumstances continue to support an indefinite useful life and it was determined that an indefinite life was no longer appropriate. This conclusion was based on plans to market current and potential future products or services under the Epiq trade name and we expect the useful life of the AACER® trade name to be ten years. Accordingly, we began amortizing this trade name beginning on July 1, 2012.

Due to the change from an indefinite life to a ten-year useful life, we tested the AACER® trade name for impairment as of June 30, 2012, based on financial forecasts and the expected useful life of ten years. Per the results of this valuation analysis, the carrying value of the trade name exceeded its fair value by $1.8 million and accordingly we recorded this amount in 2012 as "Intangible asset impairment expense" in the accompanying Consolidated Statements of Income. In 2011, as a result of our annual impairment test, the carrying value of this non-amortizing trade name was in excess of its fair value calculated under the relief from royalty method and as a result we recognized $1.3 million of impairment expense reflected in "Intangible asset impairment expense" on our Consolidated Statement of Income for the year ended December 31, 2011.

Aggregate amortization expense related to amortizing intangible assets was $18.8 million, $26.6 million, and $21.3 million, for the years ended December 31, 2013, 2012, and 2011, respectively. The following table outlines the estimated future amortization expense related to amortizing intangible assets held at December 31, 2013:

Year Ending December 31,	(in thousands)

2014	$	12,569
2015		9,893
2016		6,232
2017		5,390
2018		3,434
2019 and thereafter		3,599


Total	$	41,117

- 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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