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Goodwill And Acquired Intangible Assets

9 Months Ended

Aug. 31, 2011

Goodwill And Acquired Intangible Assets

GOODWILL AND ACQUIRED INTANGIBLE ASSETS

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


Balance as of November 30, 2010	$	409,545
Goodwill recorded for the Loyalty Lab acquisition		12,355
Goodwill adjustment for the OpenSpirit acquisition⁽¹⁾		(689	)
Goodwill adjustment for the Proginet acquisition⁽¹⁾		205
Goodwill adjustment for the Kabira acquisition⁽¹⁾		464
Foreign currency translation		17,241

Balance as of August 31, 2011	$	439,121

⁽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 August 31, 2011 and November 30, 2010 are as follows (in thousands):


	August 31, 2011							November 30, 2010
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed technologies	$	136,404	$	(102,360	)	$	34,044	$	129,492	$	(85,589	)	$	43,903
Customer base		56,225		(37,368	)		18,857		49,433		(31,606	)		17,827
Patents/core technologies		28,837		(21,650	)		7,187		27,628		(17,373	)		10,255
Trademarks		9,120		(7,022	)		2,098		8,334		(6,103	)		2,231
Non-compete agreements		580		(580	)		—		1,580		(1,541	)		39
Maintenance agreements		60,663		(37,373	)		23,290		57,915		(29,052	)		28,863

Total intangible assets subject to amortization		291,829		(206,353	)		85,476		274,382		(171,264	)		103,118
In-process research and development		1,700		—			1,700		1,700		—			1,700

Total intangible assets, net	$	293,529	$	(206,353	)	$	87,176	$	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 August 31,				Nine Months Ended August 31,
	2011		2010		2011		2010
Amortization of acquired intangible assets:
In cost of revenue	$	2,492	$	3,911	$	12,235	$	11,445
In operating expense		4,632		4,106		14,553		11,790

Total	$	7,124	$	8,017	$	26,788	$	23,235

- 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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