Goodwill & Intangible Assets

9 Months Ended

Dec. 31, 2011

Goodwill & Intangible Assets [Abstract]

8.	Goodwill & Intangible Assets

Goodwill

The carrying amount of goodwill was $170.0 million and $128.2 million as of December 31, 2011 and March 31, 2011. The following table summarizes the changes in the carrying amount of goodwill (in thousands):


	Three Months Ended December 31, 2011			Nine Months Ended December 31, 2011
Balance at beginning of period	$	141,356			128,177
Goodwill related to the acquisition of Psytechnics		0			13,179
Goodwill related to the acquisition of Replay		15,313			15,313
Goodwill related to the acquisition of Simena		14,013			14,013
Foreign currency translation impact		(730	)		(730	)

Balance as of December 31, 2011	$	169,952			169,952

Intangible Assets

The net carrying amounts of intangible assets were $56.4 million and $47.7 million as of December 31, 2011 and March 31, 2011, respectively. Intangible assets acquired in a business combination are recorded under the acquisition method of accounting at their estimated fair values at the date of acquisition. The Company amortizes intangible assets over their estimated useful lives, except for the acquired trade name which resulted from the Network General acquisition, which has an indefinite life and thus is not amortized. The carrying value of the indefinite lived trade name will be evaluated for potential impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired.

Intangible assets consist of the following as of December 31, 2011 (in thousands):


	Cost		Accumulated Amortization			Net
Acquired software	$	24,888	$	(16,802	)	$	8,086
Customer relationships		32,713		(7,930	)		24,783
Indefinite lived trade name		18,600		0			18,600
Core technology		4,700		(205	)		4,495
Net beneficial leases		336		(332	)		4
Non-compete agreements		333		(28	)		305
Other		182		(65	)		117

	$	81,752	$	(25,362	)	$	56,390

Amortization of software and core technology included as cost of product revenue was $1.2 million and $3.4 million for the three and nine months ended December 31, 2011, respectively. Amortization of other intangible assets included as operating expense was $565 thousand and $1.6 million for the three and nine months ended December 31, 2011, respectively.

Amortization of software included as cost of product revenue was $1.0 million and $3.0 million for the three and nine months ended December 31, 2010, respectively. Amortization of other intangible assets included as operating expense was $476 thousand and $1.4 million for the three and nine months ended December 31, 2010, respectively.

Intangible assets consist of the following as of March 31, 2011 (in thousands):


	Cost		Accumulated Amortization			Net
Acquired software	$	19,900	$	(13,598	)	$	6,302
Customer relationships		29,200		(6,437	)		22,763
Indefinite lived trade name		18,600		0			18,600
Net beneficial leases		336		(315	)		21

	$	68,036	$	(20,350	)	$	47,686

The following is the expected future amortization expense as of December 31, 2011 for the years ended March 31 (in thousands):


2012 (remaining three months)	$	1,946
2013		6,359
2014		4,088
2015		3,851
2016		3,520
Thereafter		18,026

	$	37,790

The weighted average amortization period of acquired software and core technology is 6.3 years. The weighted average amortization period for customer relationships is 15.2 years. The weighted average amortization period for amortizing all intangibles is 10.8 years.

- 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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