Goodwill and Acquired Intangible Assets

6 Months Ended

May 31, 2011

Goodwill and Acquired Intangible Assets

Goodwill and Acquired Intangible Assets

6. GOODWILL AND ACQUIRED INTANGIBLE ASSETS

The change in the carrying value of goodwill for the six months ended May 31, 2011 is as follows (in thousands):

Balance as of November 30, 2010	$	409,545
Goodwill adjustment for the Kabira acquisition(1)		464
Goodwill adjustment for the OpenSpirit acquisition(1)		(237	)
Goodwill recorded for the Loyalty Lab acquisition		12,355
Foreign currency translation		19,440
Balance as of May 31, 2011	$	441,567

⁽¹⁾  Pursuant to our business combinations accounting policy, we record goodwill adjustments for the effect on goodwill changes to net assets acquired during the measurement period (up to one year from the date of an acquisition). Goodwill adjustments were not significant to our previously reported operating results or financial position.

Certain of our intangible assets were recorded in foreign currencies, and therefore, the gross carrying amount and accumulated amortization are subject to foreign currency translation adjustments. The carrying values of our amortized acquired intangible assets as of May 31, 2011 and November 30, 2010 are as follows (in thousands):

	May 31, 2011							November 30, 2010
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed technologies	$	137,015	$	(100,479	)	$	36,536	$	129,492	$	(85,589	)	$	43,903
Customer base		56,408		(36,156	)		20,252		49,433		(31,606	)		17,827
Patents/core technologies		29,020		(20,985	)		8,035		27,628		(17,373	)		10,255
Trademarks		9,161		(6,835	)		2,326		8,334		(6,103	)		2,231
Non-compete agreements		580		(575	)		5		1,580		(1,541	)		39
Maintenance agreements		60,690		(35,185	)		25,505		57,915		(29,052	)		28,863
Total intangible assets subject to amortization		292,874		(200,215	)		92,659		274,382		(171,264	)		103,118
In-process research and development		1,700		—			1,700		1,700		—			1,700
Total intangible assets, net	$	294,574	$	(200,215	)	$	94,359	$	276,082	$	(171,264	)	$	104,818

Amortization of developed technologies is recorded in cost of revenue, while the amortization of other acquired intangible assets is included in operating expenses. The following summarizes the amortization expense of acquired intangible assets for the periods indicated (in thousands):

	Three Months Ended May  31,				Six Months Ended May 31,
	2011		2010		2011		2010
Amortization of acquired intangible assets:
In cost of revenue	$	4,948	$	3,920	$	9,743	$	7,534
In operating expense		5,030		3,976		9,921		7,684
Total	$	9,978	$	7,896	$	19,664	$	15,218