Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets:

The Company recorded goodwill and other intangible assets as a result of business acquisitions that occurred from 2000 through 2012. The Company also acquired license rights from the Massachusetts Institute of Technology in 1998. In February 2012, the Company recorded goodwill of $15.1 million and acquired other intangible assets of $5.1 million as a result of the acquisition of Blaze. In March 2012, the Company recorded goodwill of $233.8 million and acquired other intangible assets of $43.8 million as a result of the acquisition of Cotendo. In September 2012, the Company recorded goodwill of $8.8 million and acquired other intangible assets of $3.7 million as a result of the acquisition of FastSoft. In December 2012, the Company recorded goodwill of $20.7 million and acquired other intangible assets of $7.5 million as a result of the acquisition of Verivue. (See Note 3). The changes in the carrying amount of goodwill for the years ended December 31, 2012 and 2011 were as follows (in thousands):



	Goodwill
Ending balance, December 31, 2010 and 2011	$	452,914
Purchase price allocation associated with Blaze acquisition	15,068
Purchase price allocation associated with Cotendo acquisition	233,828
Purchase price allocation associated with FastSoft acquisition	8,825
Purchase price allocation associated with Verivue acquisition	20,690
Ending balance, December 31, 2012	$	731,325

The Company reviews goodwill and other intangible assets for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of these assets may exceed their fair value. The Company concluded that it had one reporting unit and assigned the entire balance of goodwill to that reporting unit as of December 31, 2012 and 2011 for purposes of performing an impairment test. The fair value of the reporting unit was determined using the Company’s market capitalization as of December 31, 2012 and 2011. The fair value on December 31, 2012 and 2011 exceeded the net assets of the reporting unit, including goodwill, as of both dates. Accordingly, the Company concluded that no impairment existed as of these dates. Unless changes in events or circumstances indicate that an impairment test is required, the Company will next test goodwill for impairment as of December 31, 2013.

Other intangible assets that are subject to amortization consist of the following (dollars in thousands):



	December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization period in years
Completed technologies	$	71,531	$	(32,842	)	$	38,689	6
Customer relationships	104,700		(68,702		)	35,998		9
Non-compete agreements	14,770		(7,645		)	7,125		5
Trademarks and trade names	3,700		(958		)	2,742		9
Acquired license rights	490		(490		)	—		10
Total	$	195,191	$	(110,637	)	$	84,554



	December 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization period in years
Completed technologies	$	36,731	$	(22,913	)	$	13,818	6
Customer relationships	88,700		(60,202		)	28,498		9
Non-compete agreements	8,340		(5,270		)	3,070		4
Trademarks	800		(800		)	—		4
Acquired license rights	490		(490		)	—		10
Total	$	135,061	$	(89,675	)	$	45,386

Aggregate expense related to amortization of other intangible assets for the years ended December 31, 2012, 2011 and 2010 was $21.0 million, $17.1 million and $16.7 million, respectively. As of December 31, 2012, amortization expense is expected to be approximately $24.3 million, $19.3 million, $16.6 million, $11.7 million and $7.6 million for the years ending December 31, 2013, 2014, 2015, 2016 and 2017, respectively.

- 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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