Goodwill and Other Intangibles, Net

12 Months Ended

Dec. 31, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Other Intangibles, Net

Goodwill. As of December 31, 2011 and 2010, the goodwill balance has been allocated to our reporting units as follows: $227.7 million to Supply Chain and $3.7 million to Pricing and Revenue Management, respectively. We found no indication of impairment of our goodwill balances during 2011, 2010 and 2009, and, absent future indicators of impairment, the next annual impairment test will be performed in fourth quarter 2011.

Customer-based intangible assets include customer lists, maintenance relationships and future technological enhancements, service relationships and covenants not-to-compete; technology-based intangible assets include acquired software technology; and marketing-based intangible assets include trademarks and trade names. Customer-based and marketing-based intangible assets are being amortized on a straight-line basis. Technology-based intangible assets are being amortized on a product-by-product basis with the amortization recorded for each product being the greater of the amount computed using (a) the ratio that current gross revenues for a product bear to the total of current and anticipated future revenue for that product, or (b) the straight-line method over the remaining estimated economic life of the product including the period being reported on.

Identifiable intangibles consist of the following:



	December 31, 2011						December 31, 2010
	Gross Carrying Amount			Accumulated Amortization			Gross Carrying Amount			Accumulated Amortization
Goodwill:
Gross goodwill	$	241,090		$	—		$	241,090		$	—
Accumulated impairment losses	(9,713		)	—			(9,713		)	—
Goodwill, net	231,377			—			231,377			—
Other amortized intangible assets:
Customer-based	257,983			(155,318		)	257,983			(119,835		)
Technology-based	90,147			(59,749		)	90,147			(52,654		)
Marketing-based	19,491			(10,672		)	19,491			(7,734		)
Other amortized intangible assets, net	367,621			(225,739		)	367,621			(180,223		)
Total goodwill and other intangible assets	$	598,998		$	(225,739	)	$	598,998		$	(180,223	)

Amortization expense for the years ended December 31, 2011, 2010 and 2009 was $45.5 million, $45.5 million and $27.6 million, respectively. The increase in amortization in 2010 compared to 2009 is due to amortization on the identifiable intangible assets recorded in the acquisition of i2.

Amortization expense is reported in the consolidated statements of income within cost of revenues under the caption “Amortization of acquired software technology” and in operating expenses under the caption “Amortization of intangibles.” As of December 31, 2011, we expect amortization expense for the next 5 years and thereafter to be as follows:



For the Year Ending December 31,	Amortization Expense
2012	$	44,929
2013	44,240
2014	27,352
2015	13,006
2016	11,489
Thereafter	866
Total	$	141,882

- 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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