Goodwill And Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill And Intangible Assets [Abstract]

5. Goodwill and Intangible Assets

Goodwill and intangible assets consist of the following:


(In thousands)	December 31, 2011							December 31, 2010
	Gross Assets		Accumulated Amortization			Intangible Assets, Net		Gross Assets		Accumulated Amortization			Intangible Assets, Net
	Gross Assets		Accumulated Amortization			Intangible Assets, Net		Gross Assets		Accumulated Amortization			Intangible Assets, Net
Intangibles subject to amortization
Proprietary technology		$361,660		($170,157	)		$191,503		$361,660		($142,679	)		$218,981
Customer contracts and relationships		534,355		(288,010	)		246,345		534,355		(250,667	)		283,688

Total		$896,015		($458,167	)		$437,848		$896,015		($393,346	)		$502,669

Intangibles not subject to amortization
Registered trademarks							$52,000							$52,000
Goodwill							1,039,364							1,037,004

Total							$1,091,364							$1,089,004

Changes in the carrying amount of goodwill by segment were as follows:


(In thousands)	Clinical Solutions Segment		Hospital Solutions Segment		Health Solutions Segment		Total


Balance as of December 31, 2010
Goodwill		$341,286		$623,614		$72,104		$1,037,004
Accumulated impairment losses		0		0		0		0

		341,286		623,614		72,104		1,037,004

Purchase accounting adjustments		0		2,360		0		2,360
Balance as of December 31, 2011
Goodwill		341,286		625,974		72,104		1,039,364
Accumulated impairment losses		0		0		0		0

		$341,286		$625,974		$72,104		$1,039,364

Pursuant to our business combinations accounting policy, we record goodwill adjustments for the effect on goodwill of changes to net assets acquired during the measurement period (which can be up to one year from the date of an acquisition). Goodwill purchase accounting adjustments during the year ended December 31, 2011 for our hospital solutions segment are primarily related to fair value adjustments of certain acquired tax liabilities.

Intangible assets are being amortized over their estimated useful lives. Allscripts recorded amortization expense related to the intangible assets as follows:


	Year Ended December 31, 2011		Seven Months Ended December 31, 2010		Year Ended May 31,
(In thousands)	Year Ended December 31, 2011		Seven Months Ended December 31, 2010		2010		2009
Proprietary technology amortization included in cost of revenue, system sales		$27,478		$12,719		$11,064		$7,836
Intangible amortization included in operating expenses		37,344		16,235		10,060		6,884

Total intangible amortization expense		$64,822		$28,954		$21,124		$14,720

Estimated future amortization expense for the intangible assets that exist as of December 31, 2011 is as follows:


(Dollar amounts in thousands)	Year Ended December 31,
(Dollar amounts in thousands)	Year Ended December 31,
2012		$61,778
2013		55,718
2014		52,752
2015		47,466
2016		35,421
Thereafter		184,713

Total		$437,848

- 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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