Goodwill and other Identifiable Intangible Assets

3 Months Ended

Dec. 31, 2011

Goodwill and other Identifiable Intangible Assets [Abstract]

GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS

7. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS

Amortizable identifiable intangible assets were (in thousands):


	December 31, 2011							September 30, 2011
	Gross							Gross
	carrying		Accum.					carrying		Accum.
	amount		amort.			Net		amount		amort.			Net

Purchased and core technology	$	46,296	$	(42,138	)	$	4,158	$	46,412	$	(41,716	)	$	4,696
License agreements		2,840		(2,628	)		212		2,840		(2,610	)		230
Patents and trademarks		10,475		(7,757	)		2,718		10,341		(7,505	)		2,836
Customer maintenance contracts		700		(691	)		9		700		(674	)		26
Customer relationships		17,321		(11,219	)		6,102		17,437		(10,865	)		6,572
Non-compete agreements		1,033		(1,033	)		—		1,036		(1,036	)		—

Total	$	78,665	$	(65,466	)	$	13,199	$	78,766	$	(64,406	)	$	14,360

Amortization expense was $1.2 million and $1.7 million for the three month periods ended December 31, 2011 and 2010, respectively. Amortization expense is recorded on our consolidated statements of operations within cost of sales, primarily within amortization of purchased and core technology and in general and administrative expense.

Estimated amortization expense related to identifiable intangible assets for the remainder of fiscal 2012 and the five succeeding fiscal years is (in thousands):


2012 (nine months)	$	3,234
2013		3,593
2014		2,793
2015		2,132
2016		663
2017		215

The changes in the carrying amount of goodwill were (in thousands):


	Three months ended December 31,
	2011			2010
Beginning balance, October 1	$	86,012		$	86,210
Foreign currency translation adjustment		(405	)		(458	)

Ending balance, December 31	$	85,607		$	85,752

Goodwill is tested for impairment on an annual basis as of June 30, or more frequently if events or circumstances occur which could indicate impairment. At June 30, 2011, our market capitalization exceeded the carrying value of our reporting unit by 28.6%. As a result, there was no indication of goodwill impairment.

We have defined the criteria that will result in additional interim goodwill impairment testing. If these criteria are met, we will undertake the analysis to determine whether a goodwill impairment has occurred, which could have a material effect on our consolidated financial position and results of operations. The evaluation of asset impairment requires us to make assumptions about future cash flows and revenues. These assumptions require significant judgment and actual results may differ from assumed or estimated amounts. If these estimates and assumptions change, we may be required to recognize impairment losses in the future.

- 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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