Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill And Other Intangible Assets [Abstract]

5.	Goodwill and Other Intangible Assets

Goodwill is measured for impairment annually as of January 1 at the reporting unit level. A valuation is also performed when conditions arise that management determines could potentially trigger an impairment. As of January 1, 2011, the Company had one reporting unit ("Arbitron reporting unit") to which all of the Company's goodwill at that time had been allocated. For these purposes, the Company's estimate of the fair value of the Arbitron reporting unit is equal to the Company's market capitalization value calculated as the closing price of the Company's common stock on the New York Stock Exchange on the impairment valuation date times the number of shares of our common stock outstanding on that date. For the fiscal years ended December 31, 2011, and 2010, the Company has determined that the estimated fair value of the Arbitron reporting unit substantially exceeds its carrying value, and therefore, no impairment exists as of those dates.

The following table presents additional information regarding the Company's goodwill (in thousands):


	2011			2010
Balance at January 1,	$	38,895		$	38,500
Additions		7,132			395
Translation effect		(597	)		—

Balance at December 31,	$	45,430		$	38,895

Zokem Oy. On July 28, 2011, a wholly-owned subsidiary of the Company acquired Zokem Oy and the acquired goodwill was allocated to a reporting unit other than the Arbitron reporting unit. No conditions have arisen since the acquisition date to indicate an impairment. The purchase price was $10.6 million in cash plus a contingent consideration arrangement with an estimated fair value of approximately $0.9 million as of the acquisition date. The agreement provides for possible additional cash payments to be made by the Company to the former Zokem shareholders through 2015 of up to $12.0 million, which are contingent upon Zokem reaching certain financial performance targets in the future. The approximate $0.9 million fair value estimate was determined by applying the income approach method. The key assumptions used in the fair value valuation include a probability-weighted range of performance targets for the four-year measurement period of 2012 through 2015 and an adjusted discount rate. The Company periodically reassesses the fair value of the contingent consideration.

The following table shows the adjusted assets and liabilities acquired as of July 28, 2011 (in thousands):


Asset and liabilities acquired	Amount
Trade receivables	$	334
Computer equipment		31
Other intangible assets
Acquired software and trademarks		5,150
Non-compete agreement		543
Customer relationships		907

Total assets		6,965

Accounts payable		(130	)
Other current liabilities		(197	)
Debt assumed		(1,103	)
Noncurrent liabilities		(1,217	)

Net assets acquired		4,318
Goodwill		7,132

Total purchase price, net of cash acquired	$	11,450

The other intangible assets are being amortized over a weighted average life of 5.0 years. The amount of acquisition-related costs incurred and charged to selling, general and administrative expense during 2011 was $0.7 million.

Integrated Media Measurement, Inc. On June 15, 2010, a wholly-owned subsidiary of the Company purchased the technology portfolio, trade name, and equipment of Integrated Media Measurement, Inc. The Company paid $2.5 million for these assets, which included $1.8 million of other intangible assets, $0.3 million of computer equipment, and $0.4 million of goodwill.

Digimarc Corporation. On March 23, 2010, the Company entered into a licensing arrangement with Digimarc Corporation ("Digimarc") to receive a non-exclusive, worldwide and irrevocable license to a substantial portion of Digimarc's domestic and international patent portfolio. The Company paid $4.5 million for this other intangible asset.

Other intangible assets are being amortized to expense over their estimated useful lives. The following table presents additional information regarding the Company's other intangible assets (in thousands):

Other intangible assets


	December 31, 2011
	Acquired software and trademarks			Patent licenses			Non- compete covenant			Customer lists			Total
Gross balance	$	6,425		$	4,500		$	489		$	2,230		$	13,644

Accumulated Amortization		(947	)		(1,130	)		(104	)		(937	)		(3,118	)

Net	$	5,478		$	3,370		$	385		$	1,293		$	10,526


	December 31, 2010
	Acquired software and trademarks			Patent licenses			Non- compete covenant		Customer lists			Total
Gross balance	$	1,785		$	4,500		$	—	$	1,413		$	7,698

Accumulated Amortization		(193	)		(487	)		—		(746	)		(1,426	)

Net	$	1,592		$	4,013		$	—	$	667		$	6,272


	2011		2010		2009
Amortization expense for other intangibles	$	1,713	$	822	$	141

Future amortization expense for other intangible assets is estimated to be as follows:


	Amount
2012	$	2,431
2013	$	2,326
2014	$	2,186
2015	$	1,953
2016	$	1,291
Thereafter	$	339

As of December 31, 2011, and 2010, the Company had no intangible assets with indefinite useful lives.

- 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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