GOODWILL AND OTHER ASSETS

The changes in carrying amounts of goodwill within the Company’s DNA and DI segments are summarized as follows:



	DNA			DI			Total
Goodwill	$	112,163		$	377,979		$	490,142
Accumulated impairment losses	(13,171		)	(207,573		)	(220,744		)
Balance at January 1, 2011	$	98,992		$	170,406		$	269,398
Currency translation adjustment	(50		)	(16,285		)	(16,335		)
Goodwill	112,113			361,694			473,807
Accumulated impairment losses	(13,171		)	(207,573		)	(220,744		)
Balance at December 31, 2011	$	98,942		$	154,121		$	253,063
Goodwill acquired	—			26,003			26,003
Currency translation adjustment	63			(6,178		)	(6,115		)
Goodwill	112,176			381,519			493,695
Accumulated impairment losses	(13,171		)	(207,573		)	(220,744		)
Balance at December 31, 2012	$	99,005		$	173,946		$	272,951

In 2012, goodwill was reviewed for impairment based on a two-step test which resulted in no impairment in any of the Company's reporting units. As a result of the 2012 Step 1 impairment test, the Company concluded the Brazil reporting unit had excess fair value of approximately $113,348 or 22.0 percent when compared to its carrying amount. The amount of goodwill in the Company's Brazil reporting unit was $120,571 as of December 31, 2012. All other reporting units had excess fair value greater than 25 percent when compared to their carrying amounts.

In 2011, the Company performed a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. In the 2011 qualitative assessment, management concluded that the Company's reporting units were not at risk of failing step one and therefore the two-step impairment test was not performed.

In 2010, goodwill was reviewed for impairment based on a two-step test. In 2010, management concluded that all of the Company’s goodwill within the EMEA reporting unit was not recoverable and recorded a $168,714 non-cash impairment charge during the fourth quarter 2010.

Other Assets Included in other assets are net capitalized computer software development costs of $49,513 and $51,117 as of December 31, 2012 and 2011, respectively. Amortization expense on capitalized software of $18,833, $18,742 and $17,315 was included in product cost of sales for 2012, 2011 and 2010, respectively. Other long-term assets also consist of patents, trademarks and other intangible assets. Where applicable, other assets are stated at cost and, if applicable, are amortized ratably over the relevant contract period or the estimated life of the assets. Fees to renew or extend the term of the Company’s intangible assets are expensed when incurred.

During the year ended December 31, 2012, the Company acquired $15,744 of amortizable intangible assets (refer to note 20) with an estimated weighted-average amortization period of eight years.

Impairment of long-lived assets is recognized when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the expected future undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized at that time to reduce the asset to the lower of its fair value or its net book value.

For the years ended December 31, 2011 and 2010, the Company recorded other asset-related impairment charges within DNA continuing operations of $2,962 and $7,135, respectively. The 2011 impairment charge related to a software intangible asset. The 2010 impairment charges related primarily to customer contract intangible assets and an other than temporary impairment of a cost-method investment.

Investment in Affiliate Investment in the Company’s non-consolidated affiliate was accounted for under the equity method and consists of a 50 percent ownership in Shanghai Diebold King Safe Company, Ltd. The balance of this investment as of December 31, 2012 and 2011 was $1,904 and $11,461, respectively, and fluctuated based on impairment, equity earnings and dividends. Equity earnings from the non-consolidated affiliate are included in miscellaneous, net in the consolidated statements of operations and were $702, $1,813 and $2,982 for the years ended December 31, 2012, 2011 and 2010, respectively. The non-consolidated affiliate declared dividends of $2,329, $2,470 and $2,172 for the years ended December 31, 2012, 2011 and 2010, respectively. During the year ended December 31, 2012, the Company determined the investment was partially impaired and recorded an impairment charge of $7,930, which was allocated to DNA and DI continuing operations. The Company determined the fair value of its investment using level three inputs (refer to note 18) such as price trends, material costs, discount rate, customer demand, and the long term growth rate. Additionally, the Company suspended the equity method of accounting for the investment during the quarter ended September 30, 2012.