Goodwill And Intangible Assets

3 Months Ended

Mar. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

We have two reportable segments: (1) software products and (2) services. As of March 31, 2012 and September 30, 2011, goodwill and acquired intangible assets in the aggregate attributable to our software products reportable segment was $792.9 million and $806.0 million, respectively, and attributable to our services reportable segment was $28.8 million and $29.4 million, respectively. Goodwill is tested for impairment at least annually, or on an interim basis if an event occurs or circumstances change that would, more likely than not, reduce the fair value of the reporting segment below its carrying value. We completed our most recent annual impairment review as of July 2, 2011 and concluded that no impairment charge was required as of that date. Acquired intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable.

Goodwill and acquired intangible assets consisted of the following:



	March 31, 2012						September 30, 2011
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
	(in thousands)
Goodwill (not amortized)					$	616,599					$	613,394
Intangible assets with finite lives (amortized) (1):
Purchased software	$	178,658	$	120,584	58,074		$	178,388	$	112,555	$	65,833
Capitalized software	22,877		22,877		—		22,877		22,877		—
Customer lists and relationships	229,175		84,735		144,440		227,961		75,050		152,911
Trademarks and trade names	11,079		8,587		2,492		11,035		7,967		3,068
Other	3,500		3,378		122		3,506		3,301		205
	$	445,289	$	240,161	$	205,128	$	443,767	$	221,750	$	222,017
Total goodwill and acquired intangible assets					$	821,727					$	835,411

(1) The weighted average useful lives of purchased software, customer lists and relationships, trademarks and trade names and other intangible assets with a remaining net book value are 8 years, 10 years, 6 years, and 4 years, respectively.

Goodwill

The changes in the carrying amounts of goodwill for the six months ended March 31, 2012 are due to foreign currency translation adjustments related to those asset balances that are recorded in non-U.S. currencies.

Changes in goodwill for the six months ended March 31, 2012, presented by reportable segment, are as follows:



	Software Products Segment		Services Segment			Total
	(in thousands)
Balance, September 30, 2011	$	588,443	$	24,951		$	613,394
Foreign currency translation adjustments	3,211		(6		)	3,205
Balance, March 31, 2012	$	591,654	$	24,945		$	616,599

Amortization of intangible assets

The aggregate amortization expense for intangible assets with finite lives recorded for the second quarter and first six months of 2012 and 2011 was classified in our consolidated statements of operations as follows:



	Three months ended				Six months ended
	March 31, 2012		April 2, 2011		March 31, 2012		April 2, 2011
	(in thousands)
Amortization of acquired intangible assets	$	5,132	$	4,266	$	10,341	$	8,120
Cost of license revenue	3,931		3,339		8,034		6,702
Total amortization expense	$	9,063	$	7,605	$	18,375	$	14,822

The estimated aggregate future amortization expense for intangible assets with finite lives remaining as of March 31, 2012 is $18.1 million for the remainder of 2012, $36.4 million for 2013, $34.3 million for 2014, $30.8 million for 2015, $23.2 million for 2016, $19.6 million for 2017 and $42.6 million thereafter.

- 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.

+ References+ Details