Note E - Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE E—GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The changes in the carrying amount of goodwill for the fiscal years ended December 31 were as follows:

	2015			2014
Balance as of January 1	$	687,778		$	418,839
Goodwill resulting from the ECA business combination		—			141
Goodwill resulting from the Mostra business combination (1)		(380	)		24,118
Goodwill resulting from the CityTech business combination (1)		(29	)		19,563
Goodwill resulting from the Olson business combination (1)		3,410			225,117
Effect of foreign currency translation		(3,375	)		—
Balance as of December 31	$	687,404		$	687,778

(1) During the year ended December 31, 2015, the Company recorded changes to goodwill representing adjustments during the

measurement-period (up to one year from the date of an acquisition) related to acquisitions during the year ended December 31, 2014. These goodwill adjustments were not significant to our previously reported operating results or financial position. See further discussion of the Company’s business combinations in “Note F—Business Combinations.”

Other Intangible Assets

Intangible assets are primarily amortized over periods ranging from approximately 1 to 10 years. The weighted-average period of amortization for all intangible assets as of December 31, 2015, is 8.7 years. The customer-related intangible assets related to the business combinations, which consist of customer contracts, backlog, and non-contractual customer relationships, are being amortized based on estimated cash flows and respective estimated economic benefit of the assets. The weighted-average period of amortization of the customer-related intangibles is 8.7 years. Intangible assets related to acquired developed technology are being amortized on an accelerated basis over a weighted-average period of 5.5 years.

Other intangibles consisted of the following at December 31:

	2015
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Customer-related	$	117,654	$	(59,412	)	$	58,242
Developed technology		1,463		(806	)		657
Total intangible assets	$	119,117	$	(60,218	)	$	58,899

	2014
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Customer-related	$	118,957	$	(46,703	)	$	72,254
Developed technology		1,538		(494	)		1,044
Marketing-related		4,262		(853	)		3,409
Total intangible assets	$	124,757	$	(48,050	)	$	76,707

Aggregate

amortization expense for the years ended December 31, 2015, 2014, and 2013, was approximately $17.2 million, $10.4 million, and $9.5 million, respectively. The estimated future amortization expense relating to intangible assets is as follows:

Year ending December 31,
2016	$	12,608
2017		11,098
2018		8,435
2019		6,127
2020		4,525
Thereafter		16,106
Total	$	58,899

- 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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