Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2015

5. Goodwill and Intangible Assets

Goodwill

Goodwill represents the excess of costs over fair value of net assets of businesses acquired. Goodwill and intangible assets acquired in connection with business combinations accounted for as a purchase and determined to have indefinite lives are not amortized, but are instead tested for impairment at least annually. Intangible assets with estimable useful lives are amortized over their respective estimated useful lives and reviewed for impairment when impairment indicators are present. The Company believes that no such impairment indicators existed during the three and six months ended June 30, 2015 and 2014.

Intangible Assets

Intangible assets consist of the following:


	June 30, 2015						December 31, 2014

	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Trade name (indefinite life)	$	200,000	$	—	$	200,000	$	200,000	$	—	$	200,000
Trade names (finite life)		2,130		(1,357)		773		2,130		(1,167)		963
Customer relationships		235,300		(88,396)		146,904		235,300		(82,010)		153,290
Proprietary technology		32,240		(13,247)		18,993		32,240		(11,645)		20,595
Other		2,090		(1,643)		447		2,090		(1,547)		543
	$	471,760	$	(104,643)	$	367,117	$	471,760	$	(96,369)	$	375,391

Intangible asset amortization expense for the three months ended June 30, 2015 and 2014 was $4.1 million and $3.9 million, respectively. Intangible asset amortization expense for the six months ended June 30, 2015 and 2014 was $8.3 million and $7.6 million, respectively. The Company cannot reliably determine the pattern for which it consumes the benefit of its customer relationship intangible assets. As such, the Company amortizes its customer relationship intangible assets using the straight‑line method over the estimated lives based upon the Company’s historical customer retention and recurring revenue base.

The remaining estimated intangible asset amortization expense is $8.2 million in 2015, $16.1 million in 2016, $15.2 million in 2017, $13.6 million in 2018, $13.0 million in 2019 and $101.0 million thereafter. These amounts are based upon intangible assets recorded as of June 30, 2015 and actual amortization expense could differ from these estimates as a result of future acquisitions and other factors.

- 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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