Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

The following table summarizes intangible assets (in millions):



	December 31, 2013				December 31, 2012
	Carrying Amount		Accumulated Amortization		Carrying Amount		Accumulated Amortization
Amortizable intangible assets
Customer relationships	$	168.3	$	47.0	$	169.4	$	36.0
Other	26.6		10.5		27.8		8.5
Total	$	194.9	$	57.5	$	197.2	$	44.5

Amortization expense of intangible assets for the years ended December 31, 2013, 2012 and 2011 was $15.3 million, $15.8 million and $8.6 million, respectively. Annual amortization for intangible assets recorded as of December 31, 2013 is estimated to be (in millions):



2014	$	14.9
2015	14.3
2016	14.1
2017	14.1
2018	14.0
Thereafter	66.0
Total	$	137.4

Goodwill

The following tables summarize the changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012, by Segment (in millions):



	December 31, 2012		Acquisitions		Impairments		Other			December 31, 2013
Financial Services	$	232.6	$	—	$	—	$	3.0		$	235.6
Healthcare Services	156.4		—		—		(1.4		)	155.0
Customer Communications	33.1		—		—		—			33.1
Total	$	422.1	$	—	$	—	$	1.6		$	423.7



	December 31, 2011		Acquisitions		Impairments			Other			December 31, 2012
Financial Services	$	237.6	$	—	$	—		$	(5.0	)	$	232.6
Healthcare Services	156.4		—		—			—			156.4
Customer Communications	93.0		—		(60.8		)	0.9			33.1
Total	$	487.0	$	—	$	(60.8	)	$	(4.1	)	$	422.1

DST tests goodwill for impairment on an annual basis as of October 1 and at other times if a significant change in circumstances indicates it is more likely than not that the fair value of these assets has been reduced. The valuation of goodwill requires assumptions and estimates of many critical factors, including revenue and market growth, operating cash flows, market multiples and discount rates. The Company's 2013 annual goodwill impairment test determined that the estimated fair value of each of the Company's reporting units substantially exceeds the carrying value of the reporting units.

During 2012, the decreased demand resulting from economic conditions in the U.K. economy negatively impacted production volumes and operating revenues in the U.K. As a result, during the fourth quarter of 2012, DST adjusted its future outlook and related strategy with respect to the Customer Communications U.K. operations which resulted in a reduction in future expected cash flows. Based upon these revised future cash flow projections, the 2012 goodwill impairment test indicated that the Customer Communications U.K. reporting unit's carrying value exceeded its estimated fair value. Accordingly, the Company recorded a non-cash goodwill impairment charge of $60.8 million in the Customer Communications Segment during 2012. No tax benefit was recognized for this impairment charge. The remaining goodwill in the Customer Communications U.K. reporting unit at both December 31, 2013 and 2012 is $7.6 million.

- 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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