Intangible Assets And Goodwill

9 Months Ended

Sep. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Intangible assets consisted of the following at September 30, 2012 and December 31, 2011:



	September 30, 2012							December 31, 2011
(in millions)	Assigned Value		Accumulated Amortization			Net Book Value		Assigned Value			Accumulated Amortization			Net Book Value
Amortizable Intangible Assets:
Clearing firm, market data and other customer relationships	$	2,838.7	$	(443.4	)	$	2,395.3	$	3,071.9		$	(400.4	)	$	2,671.5
Lease-related intangibles	47.2		(29.5		)	17.7		83.2			(45.4		)	37.8
Technology-related intellectual property	29.4		(12.9		)	16.5		56.2			(28.4		)	27.8
Other⁽¹⁾	9.8		(9.8		)	—		11.6			(10.6		)	1.0
	2,925.1		(495.6		)	2,429.5		3,222.9			(484.8		)	2,738.1
Foreign currency translation adjustments	—		—			—		(8.8		)	5.9			(2.9		)
Total amortizable intangible assets	$	2,925.1	$	(495.6	)	2,429.5		$	3,214.1		$	(478.9	)	2,735.2

Indefinite-Lived Intangible Assets:
Trade names						450.0								578.0
Foreign currency translation adjustments						—								(0.4		)
Total intangible assets – other, net						$	2,879.5							$	3,312.8
Trading products⁽²⁾						$	17,040.5							$	17,040.5


(1)	At September 30, 2012, other amortizable intangible assets consisted of market maker agreements and a definite-lived trade name. At December 31, 2011, other amortizable intangible assets consisted of service and market maker agreements and a definite-lived trade name.

(2)

Trading products represent futures and options products acquired in our business combinations with CBOT Holdings, Inc. (CBOT Holdings) and NYMEX Holdings, Inc. (NYMEX Holdings). Clearing and transaction fees revenues are generated through the trading of these products. These trading products, most of which have traded for decades, require authorization from the Commodity and Futures Trading Commission (CFTC). Product authorizations from the CFTC have no term limits.

As part of its sale of the CBOT building, the company sold the rights to lease agreements with tenants in the north and south towers. The lease agreements, which are included in lease-related intangibles, had a net book value of $14.4 million on the date of sale. The decrease was offset by an increase of $17.0 million of intangible assets related to the acquisition of Pivot Inc., including customer relationships and technology-related intellectual property.

In the second quarter of 2012, the company contributed the DJI asset group to its new venture with McGraw. Contributed intangible assets with an aggregate net book value of $336.3 million included rights to customer agreements, technology-related intellectual property and trade names. In addition, the company sold CMA-related intangible assets with a net book value of $9.4 million.

Total amortization expense for intangible assets was $26.2 million and $33.0 million for the quarters ended September 30, 2012 and 2011, respectively. Total amortization expense for intangible assets was $90.3 million and $99.2 million for the first nine months of 2012 and 2011, respectively. As of September 30, 2012, the future estimated amortization expense related to amortizable intangible assets is expected to be as follows.



(in millions)	Amortization Expense
Remainder of 2012	$	25.8
2013	102.8
2014	101.5
2015	101.3
2016	97.9
2017	97.3
Thereafter	1,902.9

Goodwill activity consisted of the following for the nine months ended September 30, 2012 and the year ended December 31, 2011:



	Balance at		Business					Other		Balance at
(in millions)	December 31, 2011		Combinations		Divestitures			Activity⁽³⁾		September 30, 2012
CBOT Holdings	$	5,035.7	$	—	$	—		$	—	$	5,035.7
NYMEX Holdings	2,462.2		—		—			—		2,462.2
Index Services	434.5		—		(434.5		)	—		—
Other	51.6		17.7		(28.9		)	—		40.4
Total goodwill	$	7,984.0	$	17.7	$	(463.4	)	$	—	$	7,538.3



	Balance at		Business				Other			Balance At
(in millions)	December 31, 2010		Combinations		Divestitures		Activity⁽³⁾			December 31, 2011
CBOT Holdings	$	5,035.7	$	—	$	—	$	—		$	5,035.7
NYMEX Holdings	2,462.3		—		—		(0.1		)	2,462.2
Index Services	435.6		—		—		(1.1		)	434.5
Other	50.0		—		—		1.6			51.6
Total goodwill	$	7,983.6	$	—	$	—	$	0.4		$	7,984.0


(3)	Other activity includes adjustments to tax contingencies, the recognition of excess tax benefits upon exercise of stock options and foreign currency translation adjustments.

In conjunction with the formation of the index business venture with McGraw, the company divested the goodwill allocated to Index Services and CMA reporting units.

- 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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