Goodwill and Identified Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill and Identified Intangibles Assets [Abstract]

GOODWILL AND IDENTIFIED INTANGIBLE ASSETS

NOTE 4: GOODWILL AND IDENTIFIED INTANGIBLE ASSETS

The following is a summary of goodwill and identified intangible assets as of December 31, 2011 and 2010:

	December 31, 2011							December 31, 2010
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(In thousands)
Identifiable intangibles:
Developed core technology	$	136,145	$	(81,951	)	$	54,194	$	127,146	$	(60,453	)	$	66,693
In-process technology		—		—			—		9,000		—			9,000
Customer relationships/contracts		67,098		(42,142	)		24,956		67,098		(36,117	)		30,981
Trademarks and tradenames		11,361		(7,700	)		3,661		11,361		(6,060	)		5,301
Supply agreements		3,414		(3,414	)		—		3,414		(3,414	)		—
Maintenance agreements and related relationships		7,100		(2,260	)		4,840		7,100		(1,008	)		6,092
Software license, intellectual property and assembled workforce		309		(309	)		—		309		(306	)		3
Order backlog		2,800		(2,800	)		—		2,800		(2,800	)		—
Total of identifiable intangibles	$	228,227	$	(140,576	)	$	87,651	$	228,228	$	(110,158	)	$	118,070

The changes in the carrying amount of goodwill for the years ended December 31, 2011 and 2010 are as follows:

	December 31,
	2011			2010
	(In thousands)
Balance at beginning of period	$	211,878		$	63,953
Adjustment to deferred tax liability associated with the acquisition of Omneon		(527	)		—
Adjustment to fixed assets associated with the acquisition of Omneon		298			—
Adjustment to income tax payable associated with the acquisition of Omneon		771			—
Adjustment to deferred tax liability associated with the acquisition of Scopus					786
Acquisition of Omneon					147,208
Foreign currency translation adjustment		(3	)		(69	)
Balance at end of period	$	212,417		$	211,878

Historically, there have been no impairment charges recorded to goodwill.

For the years ended December 31, 2011, 2010 and 2009, the Company recorded a total of $30.4 million, $17.4 million and $11.9 million of amortization expense for identified intangibles, respectively, of which $21.5 million, $12.5 million and $8.0 million was included in cost of revenue, respectively. The estimated future amortization expense of purchased intangible assets with definite lives is as follows:

	Cost of Revenue		Operating Expenses		Total
	(In thousands)
Year ended December 31,
2012		20,503		8,716		29,219
2013		19,232		8,096		27,328
2014		13,745		6,775		20,520
2015		714		5,783		6,497
2016		—		4,087		4,087
Total	$	54,194	$	33,457	$	87,651