Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Intangible Assets

The Company’s intangible assets and estimated useful lives are classified as follows:



	March 31, 2014					December 31, 2013
(dollars in thousands)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Developed software and core technologies (5 – 11 years)	$	308,848	$	(209,353	)	$	300,493	$	(203,236	)
Customer lists and contract backlog (3 – 15 years)	238,156		(124,661		)	237,173		(119,368		)
Trade names (2 – 10 years)	113,674		(54,018		)	102,651		(50,990		)
Total	$	660,678	$	(388,032	)	$	640,317	$	(373,594	)
Unamortized intangible assets:
Trade names	$	14,157				$	24,667

Amortization expense for the intangible assets reflected above was $14.1 million and $15.8 million for the three months ended March 31, 2014 and 2013, respectively.

As of March 31, 2014, estimated future amortization expense for the intangible assets reflected above is as follows:



(in thousands)
Remainder of 2014	$	41,417
2015	52,848
2016	46,103
2017	42,371
2018	28,524
2019	14,844
Thereafter	46,539
Total intangible assets subject to amortization	272,646
Indefinite-lived trade names	14,157
Other intangible assets, net	$	286,803

The changes in goodwill during the three months ended March 31, 2014 and 2013 were as follows:



(in thousands)	2014		2013
Beginning balance – January 1	$	1,255,704	$	1,251,247
Acquisition of Reaction Design	7,254		—
Currency translation and other	7		(1,209		)
Ending balance – March 31	$	1,262,965	$	1,250,038

During the first quarter of 2014, the Company completed the annual impairment test for goodwill and indefinite-lived intangible assets and determined that these assets had not been impaired as of the test date, January 1, 2014. No events or circumstances changed during the three months ended March 31, 2014 that would indicate that the fair values of the Company's reporting units or indefinite-lived intangible assets are below their carrying amounts.

- 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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