Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

(8) Intangible Assets and Goodwill

Federated’s identifiable intangible assets and goodwill consisted of the following at December 31:



	2011							2010
in thousands	Cost		Accumulated Amortization			Carrying Value		Cost		Accumulated Amortization			Carrying Value
Finite-lived intangible assets:
Customer relationships¹	$	56,492	$	(45,958	)	$	10,534	$	119,472	$	(103,552	)	$	15,920
Noncompete agreements²	12,142		(10,579		)	1,563		12,142		(8,950		)	3,192
Total finite-lived intangible assets³	68,634		(56,537		)	12,097		131,614		(112,502		)	19,112
Indefinite-lived intangible assets:
Renewable investment advisory rights	64,600		N/A			64,600		64,500		N/A			64,500
Trade names	1,900		N/A			1,900		1,900		N/A			1,900
Total indefinite-lived intangible assets	66,500		N/A			66,500		66,400		N/A			66,400
Goodwill	642,329		N/A			642,329		635,313		N/A			635,313
Total identifiable intangible assets and goodwill	$	777,463	$	(56,537	)	$	720,926	$	833,327	$	(112,502	)	$	720,825


1	Weighted average amortization period of 9.3 years at December 31, 2011


2	Weighted average amortization period of 6.9 years at December 31, 2011


3	Weighted average amortization period of 8.9 years at December 31, 2011

The decrease of $63.0 million in the cost of the total finite-lived intangible assets at December 31, 2011 as compared to December 31, 2010 primarily relates to a $60.0 million write-off of a fully amortized customer relationship intangible asset relating to a prior year acquisition.

Amortization expense for identifiable intangible assets was $7.0 million, $14.3 million and $16.6 million in 2011, 2010 and 2009, respectively. This expense was included in Intangible asset related on the Consolidated Statements of Income for each period. See Note (6)(b) for information regarding the intangible asset impairments.

Following is a schedule of expected aggregate annual amortization expense for intangible assets in each of the five succeeding years assuming no new acquisitions or impairments:



in millions	For the years ending December 31,
2012		$	3.4
2013		$	2.6
2014		$	2.0
2015		$	1.4
2016		$	1.0

Goodwill at December 31, 2011 and 2010 was $642.3 million and $635.3 million, respectively. During 2011, Federated recorded goodwill primarily in connection with contingent purchase price payment accrual related to the acquisition of certain assets of Clover Capital Management, Inc., a Rochester, New York-based investment manager that specializes in value investing (Clover Capital Acquisition). This acquisition was accounted for under the purchase method of accounting and therefore goodwill was recorded at the time the contingencies lapsed. See Note (20)(a) for additional information.

- 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