Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

5. Goodwill and Intangible Assets

Goodwill

The changes in the carrying value of goodwill are as follows (in thousands):


Balance at December 31, 2011	$	140,807
Acquisitions		32,888
Foreign currency exchange rate changes		690
Deferred tax adjustment		(91	)

Balance at December 31, 2012	$	174,294
Acquisition adjustment		(11	)
Foreign currency exchange rate changes		2,004
Deferred tax adjustment		63

Balance at December 31, 2013	$	176,350

The majority of the Company’s goodwill balance is not denominated in U.S. dollars, and is therefore, subject to currency fluctuations. In 2012, the Company recorded approximately $30.4 million increase to goodwill related to the Bitstream acquisition. In addition, we recorded a $2.5 million increase to goodwill related to the Design by Front acquisition.

Intangible Assets

Intangible assets are stated at cost and are amortized over the expected life of the asset. Intangible assets as of December 31, 2013 and 2012 are as follows (dollar amounts in thousands):


	Weighted- Average Amortization Period (Years)		December 31, 2013							December 31, 2012
	Weighted- Average Amortization Period (Years)		Gross Carrying Amount		Accumulated Amortization			Net Balance		Gross Carrying Amount		Accumulated Amortization			Net Balance
Customer relationships		10	$	57,319	$	(42,482	)	$	14,837	$	57,040	$	(36,464	)	$	20,576
Acquired technology		12		51,206		(29,734	)		21,472		51,067		(25,108	)		25,959
Non-compete agreements		4		12,077		(11,903	)		174		12,016		(11,752	)		264
Trademarks				35,801		—			35,801		35,537		—			35,537
Domain names				4,400		—			4,400		4,400		—			4,400

Total			$	160,803	$	(84,119	)	$	76,684	$	160,060	$	(73,324	)	$	86,736

Amortization expense is calculated using the straight-line method as there is no reliable evidence to suggest that we should expect any pattern of amortization than an even pattern, and we believe this best reflects the expected pattern of economic usage.

Estimated future intangible amortization expense based on balances at December 31, 2013 is as follow (in thousands):


	Acquired Technology		Other Intangible Assets
2014	$	4,584	$	5,064
2015		4,584		1,758
2016		4,183		1,612
2017		2,176		1,611
2018		2,072		1,591
Thereafter		3,873		3,375

Total amortization expense	$	21,472	$	15,011

- 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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