Cost in Excess of Net Assets of Companies Acquired and Intangible Assets, Net

Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. The company tests goodwill and other indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter, or more frequently if indicators of potential impairment exist.

Cost in excess of net assets of companies acquired, allocated to the company's business segments, is as follows:



	Global Components			Global ECS			Total
Balance as of December 31, 2011	$	763,952		$	709,381		$	1,473,333
Acquisitions	135,921			35,416			171,337
Other (primarily foreign currency translation)	(2,279		)	(3,529		)	(5,808		)
Balance as of June 30, 2012	$	897,594		$	741,268		$	1,638,862

Intangible assets, net, are comprised of the following as of June 30, 2012:



	Weighted-Average Life	Gross Carrying Amount		Accumulated Amortization			Net
Trade names	indefinite	$	179,000	$	—		$	179,000
Customer relationships	11 years	298,442		(83,677		)	214,765
Developed technology	5 years	11,791		(1,490		)	10,301
Other intangible assets	(a)	9,446		(7,188		)	2,258
		$	498,679	$	(92,355	)	$	406,324

Intangible assets, net, are comprised of the following as of December 31, 2011:



	Weighted-Average Life	Gross Carrying Amount		Accumulated Amortization			Net
Trade names	indefinite	$	179,000	$	—		$	179,000
Customer relationships	11 years	267,729		(69,762		)	197,967
Developed technology	6 years	11,029		(693		)	10,336
Procurement agreement	5 years	12,000		(11,400		)	600
Other intangible assets	(a)	14,573		(9,713		)	4,860
		$	484,331	$	(91,568	)	$	392,763

(a) Consists of non-competition agreements and sales backlog with useful lives ranging from one to three years.

For a period of time during the second quarter of 2012 the company's stock price traded below book value per share and as such, the company performed an interim impairment test of goodwill. The first step of the impairment test requires the identification of the company's reporting units and comparison of the fair values of each of these reporting units to their respective carrying values. Based upon the results of this step-one analysis, the fair values of each of the company's reporting units were higher than their carrying values and, therefore, goodwill was not deemed to be impaired and a step-two analysis was not required. For purposes of this analysis, the company estimated the fair value for each reporting unit utilizing the income approach in which fair value is determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. The assumptions included in the income approach include forecasted revenues, gross profit margins, operating income margins, working capital cash flow, perpetual growth rates, and long-term discount rates, among others, all of which require significant judgments by management. Actual results may differ from those assumed in the forecasts.

During the second quarter of 2012, the company also tested indefinite-lived intangible assets for impairment by comparing the fair value of these assets to their respective carrying values. Based upon the results of such tests, the company's indefinite-lived intangible assets were not impaired.

Amortization expense related to identifiable intangible assets was $8,959 and $18,630 for the second quarter and first six months of 2012 and $9,280 and $16,163 for the second quarter and first six months of 2011, respectively.