Goodwill And Intangible Assets, Net

12 Months Ended

Dec. 31, 2011

Goodwill And Intangible Assets, Net [Abstract]

NOTE 6 — GOODWILL AND INTANGIBLE ASSETS, NET

The changes in the carrying amount of goodwill by reportable operating segment (please refer to Note 3 – Geographic and Segment Reporting for discussion of our reportable operating segments) for the year ended December 31, 2010 and 2011, are as follows (in thousands):


	Licenses		Maintenance Services		Professional Services		Total
Balance as of December 31, 2009	$	470,934	$	198,895	$	652	$	670,481
Acquisitions ⁽¹⁾		17,837		12,196		3,664		33,697
Adjustments ⁽²⁾		1,324		715		7		2,046

Balance as of December 31, 2010		490,095		211,806		4,323		706,224
Acquisitions ⁽¹⁾		49,591		94,783		3,517		147,891
Adjustments ⁽³⁾		2,557		1,292		480		4,329

Balance as of December 31, 2011	$	542,243	$	307,881	$	8,320	$	858,444

(1)	Please refer to Note 2 – Acquisitions for additional details.

(2)	Primarily from post-acquisition payment obligations to former shareholders of acquisitions we made in 2007 pursuant to accounting principles applicable to acquisitions in that year.

(3)	Adjustments relate to finalization of purchase price allocations, primarily from Surgient (please refer to Note 2 – Acquisitions for details of this adjustment).

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


	December 31
	2011						2010
	Gross Carrying Amount		Accumulated Amortization and Impairments		Net		Gross Carrying Amount		Accumulated Amortization and Impairments		Net
Acquired technology and IPR&D ⁽¹⁾	$	244,680	$	(157,944)	$	86,736	$	164,816	$	(133,591)	$	31,225
Customer relationships		122,918		(67,193)		55,725		74,318		(50,639)		23,679
Non-compete agreements		15,068		(13,896)		1,172		13,919		(13,201)		718
Trademarks and trade names ⁽²⁾		19,596		(12,843)		6,753		13,302		(6,139)		7,163

	$	402,262	$	(251,876)	$	150,386	$	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. In 2011, the $6.2 million trade name related to ScriptLogic became impaired (please refer to discussion below).

During the year ended December 31, 2011, we recognized impairment losses of approximately $9 million. During the third quarter of 2011, certain intangible assets related to Surgient were impaired due to changed plans for certain products that were to include these technology assets. The impairment loss of $1.6 million was recorded in Cost of revenues and Amortization of other purchased intangible assets for $0.8 million each in our consolidated income statements. During the fourth quarter of 2011, the trade name of $6.2 million related to ScriptLogic and the IPR&D of $1.1 million related to PacketTrap became impaired. The trade name related to ScriptLogic became impaired due to the integration and branding of ScriptLogic products with Quest products. The IPR&D related to PacketTrap became impaired due to changed plans for certain products that were to include these technology assets. The impairment loss of $6.2 million was recorded in Amortization of other purchased intangible assets and $1.1 million was recorded in Cost of revenues in our consolidated income statements.

Amortization expense for intangible assets was $39.4 million, $28.8 million and $32.6 million for the year ended December 31, 2011, 2010 and 2009, respectively. Estimated annual amortization expense related to intangible assets reflected on our December 31, 2011 balance sheet is as follows (in thousands):


	Estimated Annual Amortization Expense
2012	$	43,612
2013		29,863
2014		27,285
2015		18,185
2016 and thereafter		30,641

Total accumulated amortization	$	149,586

- 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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