Goodwill and Other Intangibles, net

9 Months Ended

Sep. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles, net [Text Block]

Goodwill and Other Intangibles, net

Goodwill consists of the following:



	September 30, 2012			December 31, 2011
Gross goodwill	$	241,090		$	241,090
Accumulated impairment losses	(9,713		)	(9,713		)
Goodwill, net	$	231,377		$	231,377

Other identifiable intangibles consist of the following:



	September 30, 2012							December 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Amount		Gross Carrying Amount		Accumulated Amortization			Net Amount
Customer-based	$	257,983	$	(181,762	)	$	76,221	$	257,983	$	(155,318	)	$	102,665
Technology-based	90,147		(64,856		)	25,291		90,147		(59,749		)	30,398
Marketing-based	19,491		(12,818		)	6,673		19,491		(10,672		)	8,819
Other amortized intangible assets, net	$	367,621	$	(259,436	)	$	108,185	$	367,621	$	(225,739	)	$	141,882

Goodwill. We had no impairment of our goodwill balances during the nine months ended September 30, 2012 the next annual impairment test will be performed in fourth quarter 2012. As of September 30, 2012, 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.

To date our Pricing and Revenue Management segment has not achieved its current year revenue projections and may not achieve our original projections for 2012, which could result in a revenue decline from 2011. We have considered this impairment indicator and evaluated impairment for the segment's assets for the quarter ended September 30, 2012 and have determined that there is no impairment. We will continue to monitor the revenues and projections for Pricing and Revenue Management and it is possible that this assessment could lead to an impairment against this business segment, which includes $3.7 million in a goodwill intangible asset, if there is a further decline in the segment's operating results.

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.

Amortization expense is reported in the Condensed 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 September 30, 2012 we expect amortization expense for the remainder of 2012 and thereafter to be as follows:



	Amortization
For the Year Ending December 31,	Expense
2012, remainder thereof	$	11,233
2013	44,240
2014	27,352
2015	13,006
2016	11,489
Thereafter	865
Total	$	108,185

- 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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