Goodwill And Purchased Intangibles

12 Months Ended

Dec. 31, 2011

Goodwill And Purchased Intangibles [Abstract]

3. Goodwill and Purchased Intangibles:

The Company completed its annual goodwill impairment test as of October 1, 2011 and 2010. In September 2011, the FASB issued authoritative guidance on goodwill impairment testing which provides entities an option to perform a qualitative assessment to determine whether further impairment testing is necessary. The Company elected to early adopt this guidance for its 2011 impairment test which resulted in the Company performing a qualitative assessment to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair values of the Company's reporting units are less than their carrying amounts. Based on the qualitative assessment, the Company determined that it is not more likely than not that the fair values are less than their carrying amounts, therefore no further impairment testing was performed.

The following table presents the changes in carrying amount of goodwill in each of the Company's segments as of December 31, 2011 (in thousands):


	Segments
	Americas		EMEA			APAC			Total
Balance at December 31, 2010	$	276,732	$	91,930		$	124,443		$	493,105
Add: Goodwill resulting from acquisitions		45,413		19,641			26,589			91,643
Foreign currency translation		—		(238	)		(323	)		(561	)

Balance at December 31, 2011	$	322,145	$	111,333		$	150,709		$	584,187

The following table presents details of the Company's total purchased intangible assets as of December 31 (in thousands):


	2011										2010
Purchased Intangible Assets	Gross Value		Accumulated Amortization			Accumulated Impairment			Net Value		Gross Value		Accumulated Amortization			Accumulated Impairment			Net Value
Core and developed technology	$	129,778	$	(101,713	)	$	(4,650	)	$	23,415	$	109,178	$	(89,857	)	$	(4,650	)	$	14,671
Customer and partner relationships		94,725		(44,586	)		—			50,139		44,625		(36,815	)		—			7,810
Trade name		10,503		(7,760	)		(150	)		2,593		9,103		(6,289	)		(150	)		2,664
IPRD		1,400		—			—			1,400		—		—			—			—
Other		5,362		(4,334	)		(610	)		418		4,862		(3,735	)		(610	)		517

Finite lives Intangible Assets		241,768		(158,393	)		(5,410	)		77,965		167,768		(136,696	)		(5,410	)		25,662
Indefinite life trade name		918		—			—			918		918		—			—			918

Total	$	242,686	$	(158,393	)	$	(5,410	)	$	78,883	$	168,686	$	(136,696	)	$	(5,410	)	$	26,580

In 2011, 2010, and 2009, the Company recorded amortization expense related to purchased intangibles of $9.8 million, $5.7 million, and $5.8 million, respectively, which is included in "Amortization of purchased intangibles" in the Consolidated Statements of Operations. In 2011, 2010, and 2009, the Company recorded approximately $11.9 million, $13.3 million, and $13.5 million, respectively, of amortization of purchased intangibles to "Cost of Product Revenues" in the Consolidated Statements of Operations. Amortization of intangibles is not allocated to the Company's segments.

The Company determined that a purchased trade name intangible of $0.9 million had an indefinite life as the Company expects to generate cash flows related to this asset indefinitely. Consequently, this trade name is no longer amortized but is reviewed for impairment annually or sooner under certain circumstances.

The Company evaluates its purchased intangibles for possible impairment on an ongoing basis. When impairment indicators exist, the Company performs an assessment to determine if the intangible asset has been impaired and to what extent. The assessment of purchased intangibles impairment is conducted by first estimating the undiscounted future cash flows to be generated from the use and eventual disposition of the purchased intangibles and comparing this amount with the carrying value of these assets. If the undiscounted cash flows are less than the carrying amounts, impairment exists and future cash flows are discounted at an appropriate rate and compared to the carrying amounts of the purchased intangibles to determine the amount of the impairment. There were no indicators of impairment during the years ended December 31, 2011, 2010, and 2009.

The estimated future amortization expense of purchased intangible assets as of December 31, 2011 is as follows (in thousands):


Year ending December 31,	Amount
2012	$	24,370
2013		15,490
2014		13,359
2015		11,075
2016		9,235
Thereafter		4,436

Total	$	77,965

- 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.

+ References+ Details