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GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2011

NOTE 4: GOODWILL AND INTANGIBLE ASSETS

The change in the carrying amount of goodwill for 2011 and 2010 was as follows:

	eDiscovery			Bankruptcy		Settlement Administration		Total

	(in thousands)
Balance as of December 31, 2009	$	79,954		$	151,438	$	32,847	$	264,239
Acquisitions		—			30,678		—		30,678
Foreign currency translation and other		(128	)		—		—		(128	)

Balance as of December 31, 2010		79,826			182,116		32,847		294,789
Acquisitions		107,951			—		—		107,951
Foreign currency translation and other		(4	)		—		—		(4	)

Balance as of December 31, 2011	$	187,773		$	182,116	$	32,847	$	402,736

The increase in goodwill in 2011 resulted from both the April 2011 acquisition of Encore and the December 2011 acquisition of De Novo Legal. The increase in goodwill in 2010 resulted from the October 2010 acquisition of Jupiter eSources. Each of these acquisitions is discussed further in Note 13.

Identifiable intangible assets as of December 31, 2011 and 2010 consisted of the following:

	December 31, 2011				December 31, 2010

	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
	(in thousands)
Amortizing intangible assets:
Customer relationships	$	124,283	$	50,813	$	63,902	$	32,007
Trade names		3,212		987		745		745
Non-compete agreements		18,947		11,711		30,838		25,587
Non-amortizing intangible assets:
Trade names		5,156		—		6,434		—

	$	151,598	$	63,511	$	101,919	$	58,339

The increase in amortizing identifiable intangible assets in 2011 resulted from both the April 2011 acquisition of Encore and the December 2011 acquisition of De Novo Legal. The decrease in the non-amortizing trade name resulted from intangible asset impairment expense of $1.3 million related to our AACER® trade name acquired as part of the Jupiter acquisition in 2010. Each of these acquisitions is discussed further in Note 13. See Note 1 for further discussion of goodwill and identifiable intangible assets.

Customer relationships, non-compete agreements and amortizing trade names carry a weighted-average life of seven years, five years, and five years, respectively. The AACER® trade name acquired in 2010 was determined to have an indefinite life and is not amortized and is tested annually for impairment and also reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of the asset might not be recoverable. See Note 1 for further discussion of identifiable intangible assets.

Aggregate amortization expense related to amortizing intangible assets was $21.3 million, $9.2 million, and $7.4 million for the years ended December 31, 2011, 2010, and 2009, respectively. The following table outlines the estimated future amortization expense related to amortizing intangible assets held at December 31, 2011:

Year Ending December 31,	(in thousands)

2012	$	26,460
2013		18,607
2014		12,122
2015		9,473
2016 and thereafter		16,381

- 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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