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Goodwill and Intangible Assets
6 Months Ended
Jun. 30, 2013
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

7. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company carries goodwill as a result of its acquisitions of Barra, LLC (“Barra”), RiskMetrics Group, LLC (“RiskMetrics”), Measurisk, LLC (“Measurisk”), IPD Group Limited (“IPD”) and Investor Force Holdings, Inc. (“InvestorForce”), as reflected in the table below:

 

     Performance
and Risk
    Governance     Total  
(in thousands)                   

Goodwill at December 31, 2012

   $ 1,552,293     $ 231,117     $ 1,783,410  

Changes to goodwill (1)

     14,370        (468     13,902   

Foreign exchange translation adjustment

     (5,002 )     —         (5,002 )
  

 

 

   

 

 

   

 

 

 

Goodwill at June 30, 2013

   $ 1,561,661     $ 230,649     $ 1,792,310  
  

 

 

   

 

 

   

 

 

 

 

(1) 

Resulting from the acquisition of InvestorForce, which contributed $11.6 million to the Performance and Risk segment, adjustments to the valuation of acquired IPD assets and liabilities, which contributed $2.7 million to the Performance and Risk segment, and the disposal of the CFRA product line, which removed $0.5 million from the Governance segment.

Intangible Assets

Amortization expense related to intangible assets for the three months ended June 30, 2013 and 2012 was $14.5 million and $16.0 million, respectively. Amortization expense related to intangible assets for the six months ended June 30, 2013 and 2012 was $29.0 million and $31.9 million, respectively.

The gross carrying amounts and accumulated amortization totals related to the Company’s identifiable intangible assets are as follows:

 

     As of  
(in thousands)    June 30,
2013
    December 31,
2012
 

Gross intangible assets:

    

Customer relationships

   $ 478,735     $ 474,236  

Trademarks/trade names

     257,282       256,582  

Technology/software

     196,493       193,192  

Proprietary process

     3,800       3,800  

Proprietary data

     28,527       28,527  
  

 

 

   

 

 

 

Subtotal

     964,837       956,337  

Foreign exchange translation adjustment

     (3,146 )     836  
  

 

 

   

 

 

 

Total gross intangible assets

   $ 961,691     $ 957,173  
  

 

 

   

 

 

 

Accumulated amortization:

    

Customer relationships

   $ (108,983 )   $ (92,631 )

Trademarks/trade names

     (68,897 )     (62,270 )

Technology/software

     (163,848 )     (159,375 )

Proprietary process

     (1,953 )     (1,636 )

Proprietary data

     (1,241 )     (184 )
  

 

 

   

 

 

 

Subtotal

     (344,922 )     (316,096 )

Foreign exchange translation adjustment

     56       (3 )
  

 

 

   

 

 

 

Total accumulated amortization

   $ (344,866 )   $ (316,099 )
  

 

 

   

 

 

 

Net intangible assets:

    

Customer relationships

   $ 369,752     $ 381,605  

Trademarks/trade names

     188,385       194,312  

Technology/software

     32,645       33,817  

Proprietary process

     1,847       2,164  

Proprietary data

     27,286       28,343  
  

 

 

   

 

 

 

Subtotal

     619,915       640,241  

Foreign exchange translation adjustment

     (3,090 )     833  
  

 

 

   

 

 

 

Total net intangible assets

   $ 616,825     $ 641,074  
  

 

 

   

 

 

 

 

The estimated amortization expense for succeeding years is presented below:

 

Fiscal Year

   Amortization
Expense
 
     (in thousands)  

Remainder of 2013

   $ 28,827   

2014

     57,615   

2015

     57,538   

2016

     55,400   

2017

     49,289   

2018

     46,787   

Thereafter

     321,369   
  

 

 

 

Total

   $ 616,825