GOODWILL AND INTANGIBLE ASSETS - NET

12 Months Ended

Dec. 31, 2012

GOODWILL AND INTANGIBLE ASSETS - NET [Abstract]

3.	GOODWILL AND INTANGIBLE ASSETS — NET

Goodwill by reportable segment was as follows:

	North America			EU		Russia			Other		Total
Balance as of January 1, 2012	$	2,286		$	2,864	$	3,019		$	—	$	8,169
Acquisition of Thoughtcorp (Note 2)		2,935			—		—			—		2,935
Acquisition of Empathy Lab (Note 2)		11,359			—		—			—		11,359
Effect of net foreign currency exchange rate changes		63			—		172			—		235
Balance as of December 31, 2012		16,643			2,864		3,191			—		22,698
Effect of net foreign currency exchange rate changes		(205	)		—		(225	)		—		(430	)
Balance as of December 31, 2013	$	16,438		$	2,864	$	2,966		$	—	$	22,268

As a result of an operating loss in the Other reporting unit for the three months ended June 30, 2011, the Company performed a goodwill impairment test. In assessing impairment in accordance with Accounting Standards Codification, (“ASC”) No. 350, “Intangibles-Goodwill and Other,” the Company determined that the fair value of the Other reporting unit, based on the total of the expected future discounted cash flows directly related to the reporting unit, was below the carrying value of the reporting unit. The Company completed the second step of the goodwill impairment test, resulting in an impairment charge of $1,697. There were no accumulated impairments losses in any of the North America, Europe or Russia segments as of December 31, 2013, 2012 or 2011.

As part of the Thoughtcorp acquisition, substantially all of the employees of the acquiree accepted employment with the Company. The Company believes the amount of goodwill resulting from the allocation of purchase price to acquire Thoughtcorp is attributable to the workforce of the acquired business. All of the goodwill was allocated to the Company’s Canadian operations and is presented within North America.

As part of the Empathy Lab acquisition, substantially all of the employees of the acquiree accepted employment with the Company. The Company believes the amount of goodwill resulting from the allocation of purchase price to acquire Empathy Lab is attributable to the workforce of the acquired business. All of the goodwill was allocated to the Company’s U.S. operations and is presented within North America.

Components of intangible assets were as follows:

	2013
	Weighted average life at acquisition (in years)		Gross carrying amount		Accumulated amortization			Net carrying amount
Client relationships		9	$	13,432	$	(4,885	)	$	8,547
Trade name		5		6,232		(1,643	)		4,589
Non-competition agreements		5		848		(250	)		598
Total			$	20,512	$	(6,778	)	$	13,734

	2012
	Weighted average life at acquisition (in years)		Gross carrying amount		Accumulated amortization			Net carrying amount
Client relationships		9	$	13,724	$	(3,640	)	$	10,084
Trade name		5		6,372		(439	)		5,933
Non-competition agreements		5		881		(64	)		817
Total			$	20,977	$	(4,143	)	$	16,834

All of the intangible assets have finite lives and as such are subject to amortization. Amortization of intangibles for the years ended December 31 is presented in the table below:

	Year Ended December 31,
	2013		2012		2011
Client relationships	$	1,373	$	627	$	720
Trade name		1,222		333		59
Non-competition agreements		190		64		—
Total	$	2,785	$	1,024	$	779

Estimated amortization expenses of the Company’s existing intangible assets for the next five years ending December 31, were as follows:

	Amount
2014	$	2,503
2015		2,376
2016		2,341
2017		1,865
2018		977
Thereafter		3,672
Total	$	13,734

- 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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