3. Goodwill

The changes in the carrying amount of goodwill by reporting unit for the three and nine months ended March 31, 2012 are as follows (dollars in thousands):

	Reporting Unit
Asset Class	License			SMS, Training, and Other			Professional Services			Total
Balance as of June 30, 2011
Goodwill	$	68,049		$	16,144		$	5,102		$	89,295
Accumulated impairment losses		(65,569	)		-			(5,102	)		(70,671	)
	$	2,480		$	16,144		$	-		$	18,624

Effect of currency translation		(12	)		(709	)		-			(721	)

Balance as of December 31, 2011
Goodwill	$	68,037		$	15,435		$	5,102		$	88,574
Accumulated impairment losses		(65,569	)		-			(5,102	)		(70,671	)
	$	2,468		$	15,435		$	-		$	17,903

Acquisitions	$	1,641		$	-		$	-		$	1,641

Effect of currency translation		(12	)		280			-			268

Balance as of March 31, 2012
Goodwill	$	69,666		$	15,715		$	5,102		$	90,483
Accumulated impairment losses		(65,569	)		-			(5,102	)		(70,671	)
	$	4,097		$	15,715		$	-		$	19,812

We test goodwill for impairment annually (or more often if impairment indicators arise), at the reporting unit level in accordance with the provisions of ASC 350, Intangibles-Goodwill and Other. We have elected December 31 as the annual impairment assessment date and perform additional impairment tests if triggering events occur.

We adopted ASU No. 2011- 08, Intangibles- Goodwill and Other (Topic 350): Testing Goodwill for Impairment, during the nine months ended March 31, 2012. In accordance with the provisions of ASU No. 2011-08, we must first assess qualitative factors to determine whether the existence of events or circumstances indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we determine based on this assessment that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we are required to perform the two-step goodwill impairment test. The first step requires us to determine the fair value of each reporting unit and compare it to the carrying amount, including goodwill, of such reporting unit. If the fair value exceeds the carrying amount, no impairment loss is recognized. However, if the carrying amount of the reporting unit exceeds its fair value, the goodwill of the unit may be impaired. The amount of impairment, if any, is measured based upon the implied fair value of goodwill at the valuation date.

Fair value of a reporting unit is determined using a combined weighted average of market-based approach (utilizing fair value multiples of comparable publicly traded companies) and an income-based approach (utilizing discounted projected cash flows). In applying the income-based approach, we would be required to make assumptions about the amount and timing of future expected cash flows, growth rates and appropriate discount rates. The amount and timing of future cash flows would be based on our most recent long-term financial projections. The discount rate we would be required to utilize would be determined using estimates of market participant risk-adjusted weighted-average costs of capital and reflect the risks associated with achieving future cash flows.

We performed our annual impairment test for each reporting unit as of December 31, 2011 and based upon the results of our qualitative assessment determined that it is not likely that their respective fair values are less than their carrying amounts. As such, we did not perform the two-step goodwill impairment test and did not recognize impairment losses as a result of this analysis. No triggering events indicating goodwill impairment occurred during the three and nine months ended March 31, 2012.