GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2012

NOTE 10 – GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill and identifiable indefinite lived intangible assets are not amortized, but are subject to an annual impairment test. Other intangible assets are amortized over their useful lives. We have determined that our customer relationships have useful lives from 14 to 40 years based upon the type of customer, with a weighted average remaining useful life of 28.1 years. We have covenants not-to-compete intangibles with useful lives from two to ten years, with a weighted average remaining useful life of 5.2 years. We have tradename intangibles with useful lives from 15 to 40 years, with a weighted average remaining useful life of 15.4 years. We have determined that our permits have indefinite lives due to our ability to renew these permits with minimal additional cost, and therefore they are not amortized.

We have two geographical reporting segments, “United States” and “International”, both of which have goodwill. The changes in the carrying amount of goodwill since December 31, 2010 were as follows by reporting segment:


In thousands	United States			International			Total
Balance as of December 31, 2010	$	1,279,758		$	316,006		$	1,595,764
Goodwill acquired during year		232,850			120,750			353,600
Goodwill allocation adjustments		(6,192	)		(4,922	)		(11,114	)
Sale of business		0			(2,887	)		(2,887	)
Changes due to currency fluctuation		0			(21,660	)		(21,660	)

Balance as of December 31, 2011	$	1,506,416		$	407,287		$	1,913,703

Goodwill acquired during year		12,581			9,004			21,585
Goodwill allocation adjustments		(1,535	)		(21,788	)		(23,323	)
Changes due to currency fluctuation		0			12,275			12,275

Balance as of March 31, 2012	$	1,517,462		$	406,778		$	1,924,240

The changes to goodwill for 2011 acquisitions are primarily due to the finalization of intangible valuations.

As of March 31, 2012 and December 31, 2011, the values of the intangible assets were as follows:



	March 31, 2012						December 31, 2011
In thousands	Gross Carrying Amount		Accumulated Amortization		Net Value		Gross Carrying Amount		Accumulated Amortization		Net Value
Amortizable intangibles:
Covenants not-to-compete	$	10,981	$	4,782	$	6,199	$	10,903	$	4,350	$	6,553
Customer relationships		495,946		41,942		454,004		480,033		36,994		443,039
Tradenames		5,008		517		4,491		2,556		391		2,165
License agreements		720		341		379		720		315		405
Indefinite lived intangibles:
Operating permits		117,394		0		117,394		94,456		0		94,456

Total	$	630,049	$	47,582	$	582,467	$	588,668	$	42,050	$	546,618

During the quarters ended March 31, 2012 and 2011, the aggregate amortization expense was $5.0 million and $3.3 million, respectively.

The estimated amortization expense for each of the next five years, assuming no additional amortizable intangible assets, is as follows for the years ended December 31:


In thousands
2012	$	19,880
2013		19,825
2014		19,614
2015		19,378
2016		19,169

Future amortization expense may fluctuate depending on changes in foreign currency rates, future acquisitions, or changes to the estimated amortizable life of the intangibles. The estimates for amortization expense noted above are based upon foreign exchange rates as of March 31, 2012.

- 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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