Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

4.	GOODWILL AND OTHER INTANGIBLE ASSETS

The following table presents the changes in the carrying amount of goodwill by reportable segment, for the years ended December 31, 2014 and 2015, in thousands:


	Unified Communications Services			Safety Services		Interactive Services			Specialized Agent Services			Total
Balance at January 1, 2014	$	885,416		$	487,390	$	166,063		$	132,336		$	1,671,205
Acquisitions		—			20,198		57,352			157,414			234,964
Foreign currency translation adjustment		(20,848	)		—		(175	)		—			(21,023	)
Acquisition accounting adjustments		—			—		(226	)		—			(226	)

Balance at December 31, 2014		864,568			507,588		223,014			289,750			1,884,920
Acquisitions		24,579			—		23,221			—			47,800
Acquisition accounting adjustments		—			1,091		(44	)		(1,400	)		(353	)
Foreign currency translation adjustments		(15,365	)		—		(1,312	)		—			(16,677	)

Balance at December 31, 2015	$	873,782		$	508,679	$	244,879		$	288,350		$	1,915,690

Impairment testing results performed during the fourth quarter of 2015 and 2014 indicated that the fair value of each of our reporting units as calculated during the step one analysis exceeded the carrying value and therefore we were not required to perform the step two analysis for the years ended December 31, 2015 and 2014.

Other intangible assets

Below is a summary of the major intangible assets for each identifiable intangible asset, in thousands:


	As of December 31, 2015
Intangible assets	Acquired Cost		Accumulated Amortization			Net Intangible Assets
Client Relationships	$	649,494	$	(440,163	)	$	209,331
Technology & Patents		178,027		(96,774	)		81,253
Trade names and trademarks (finite-lived)		103,398		(30,470	)		72,928
Other intangible assets		22,725		(16,216	)		6,509

Total	$	953,644	$	(583,623	)	$	370,021


	As of December 31, 2014
Intangible assets	Acquired Cost		Accumulated Amortization			Net Intangible Assets
Client Relationships	$	622,285	$	(409,611	)	$	212,674
Technology & Patents		168,932		(82,536	)		86,396
Trade names (indefinite-lived)		37,710		—			37,710
Trade names (finite-lived)		65,866		(22,333	)		43,533
Other intangible assets		20,526		(12,673	)		7,853

Total	$	915,319	$	(527,153	)	$	388,166

Amortization expense for finite-lived intangible assets was $68.5 million, $61.0 million and $53.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. Estimated amortization expense for the next five years for the intangible assets is as follows:


2016	$	62.7 million
2017	$	53.4 million
2018	$	47.6 million
2019	$	42.0 million
2020	$	35.4 million

As a result of a Company-wide branding initiative during 2015, we determined that the use of the Intrado and InterCall trade names, previously considered indefinite lived, should be changed to a finite life of twenty years for each. An impairment assessment was performed, the results of which indicated no impairment of these intangible assets. In addition, as part of this branding initiative, all trade names and trademarks acquired in all acquisitions were reviewed. As a result of this review, the remaining useful lives of trade names and trademarks acquired in four other acquisitions were shortened to reflect their remaining estimated useful life. The impact on amortization expense in 2015 from the change in estimated lives of these intangible assets was approximately $1.9 million.

The following table summarizes the finite-lived intangible assets acquired in the acquisitions made in 2015 and 2014. There were no acquisitions in 2013.


(Amounts in thousands)		Customer Relationships		Technology		Non-Compete Agreements		Trade Marks and Trade Names		Total		Amortization recorded in 2015		Amortization recorded in 2014
Acquisition	Acquisition Date	Customer Relationships		Technology		Non-Compete Agreements		Trade Marks and Trade Names		Total		Amortization recorded in 2015		Amortization recorded in 2014
ClientTell	November 2, 2015	$	22,100	$	2,400	$	1,620	$	180	$	26,300	$	505	$	—
Magnetic North	October 31, 2015		10,197		5,206		433		525		16,361		721		—
SharpSchool	June 2, 2015		4,971		3,480		184		457		9,092		746		—
SchoolReach	November 3, 2014		5,700		760		600		290		7,350		1,674		113
911 Enable	September 2, 2014		15,200		4,900		185		400		20,685		3,223		1,083
Health Advocate	June 13, 2014		82,700		36,360		2,800		30,130		151,990		18,031		10,598
SchoolMessenger	April 21, 2014		28,300		8,800		1,345		1,700		40,145		6,076		4,982

		$	169,168	$	61,906	$	7,167	$	33,682	$	271,923	$	30,976	$	16,776

Weighted average amortization period by major intangible asset class in years is:			13.7		9.1		3.6		18.2		13.0

The straight line method of amortization is used for trade names, trademarks, technology and non-competition agreements. The estimated future life of customer relationships is based upon the expected attrition rate associated with the relationships. The Company uses an amortization method based on the projected cash flows generated from the existing customers on the acquisition date. As the customer relationships age and customers are lost, the cash flows generated from these relationships decline. This amortization method reflects the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up.

- 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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