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Goodwill And Intangible Assets, Net

9 Months Ended

Sep. 30, 2011

Goodwill And Intangible Assets, Net

Goodwill And Intangible Assets, Net

NOTE 7 — GOODWILL AND INTANGIBLE ASSETS, NET

The changes in the carrying amount of goodwill by reportable operating segment (refer to Note 4 – Geographic and Segment Reporting for discussion of our reportable operating segments) for the nine months ended September 30, 2011 are as follows (in thousands):


		Licenses				Maintenance Services				Professional Services				Total
Balance as of December 31, 2010		$	490,095			$	211,806			$	4,323			$	706,224
Acquisitions			20,420				18,628				1,447				40,495
Adjustments ⁽¹⁾			3,486				2,346				541				6,373

Balance as of September 30, 2011		$	514,001			$	232,780			$	6,311			$	753,092

(1)	Primarily from finalization of purchase price allocations for Surgient (refer to Note 3- Acquisitions for details of the adjustment).

Intangible assets, net are comprised of the following (in thousands):


		September 30, 2011												December 31, 2010
		Gross Carrying Amount				Accumulated Amortization				Net				Gross Carrying Amount				Accumulated Amortization				Net
Acquired technology and IPR&D ⁽¹⁾		$	207,082			$	(150,226	)		$	56,856			$	164,816			$	(133,591	)		$	31,225
Customer relationships			91,418				(62,733	)			28,685				74,318				(50,639	)			23,679
Non-compete agreements			14,689				(13,765	)			924				13,919				(13,201	)			718
Trademarks and trade names ⁽²⁾			15,695				(6,432	)			9,263				13,302				(6,139	)			7,163

		$	328,884			$	(233,156	)		$	95,728			$	266,355			$	(203,570	)		$	62,785

(1)	IPR&D projects were identified and valued related to our acquisitions. These projects are continually assessed for impairment. Upon completion, these projects will be amortized over their estimated useful life.

(2)	Trademarks and trade names include $6.2 million and $0.8 million in trade names related to our acquisition of ScriptLogic and PacketTrap, respectively, that each have an indefinite useful life, and as such are not being amortized.

Amortization expense for intangible assets was $11.5 million and $29.6 million for the three months and nine months ended September 30, 2011, respectively. This compares to $7.3 million and $22.1 million for the three months and nine months ended September 30, 2010, respectively.

Estimated annual amortization expense related to amortizing intangible assets reflected on our September 30, 2011 condensed consolidated balance sheet is as follows (in thousands):


		Estimated Annual Amortization Expense
2011 (remaining quarter)		$	9,474
2012			32,373
2013			18,112
2014			15,553
2015 and thereafter			13,216

Total accumulated amortization		$	88,728

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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