Goodwill And Acquired Intangible Assets

12 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Intangible Assets

We have two reportable segments: (1) software products and (2) services. As of September 30, 2013 and 2012, goodwill and acquired intangible assets in the aggregate attributable to our software products reportable segment was $979.3 million and $768.1 million, respectively, and attributable to our services reportable segment was $62.9 million and $28.1 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 annual impairment review as of June 29, 2013 based on a qualitative assessment. Our qualitative assessment included company specific (financial performance and long-range plans), industry, and macroeconomic factors, as well as a sensitivity analysis of key model assumptions. Based on our qualitative assessment, we believe it is more-likely-than-not that the fair values of our reporting units exceed their carrying values and no further impairment testing is required. Through September 30, 2013, there have not been any events or changes in circumstances that indicate that the carrying values of goodwill or acquired intangible assets may not be recoverable.

Goodwill and acquired intangible assets consisted of the following:



	September 30, 2013						September 30, 2012
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
	(in thousands)
Goodwill (not amortized)					$	769,095					$	610,347
Intangible assets with finite lives (amortized) (1):
Purchased software	$	233,566	$	148,127	$	85,439	$	177,166	$	127,250	$	49,916
Capitalized software	22,877		22,877		—		22,877		22,877		—
Customer lists and relationships	304,434		120,338		184,096		227,097		93,215		133,882
Trademarks and trade names	13,427		10,097		3,330		11,013		8,967		2,046
Other	3,784		3,528		256		3,437		3,396		41
	$	578,088	$	304,967	$	273,121	$	441,590	$	255,705	$	185,885
Total goodwill and acquired intangible assets					$	1,042,216					$	796,232

(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, 7 years and 3 years, respectively.

The changes in the carrying amounts of goodwill from October 1, 2012 to September 30, 2013 are due to the impact of acquisitions (described in Note E) and to foreign currency translation adjustments related to those asset balances that are recorded in non-U.S. currencies.

Changes in goodwill presented by reportable segment were as follows:



	Software Products Segment			Services Segment			Total
	(in thousands)
Balance, October 1, 2012	$	588,443		$	24,951		$	613,394
Acquisition of 4CS	(950		)	—			(950		)
Foreign currency translation adjustments	(2,024		)	(73		)	(2,097		)
Balance, September 30, 2012	585,469			24,878			610,347
Acquisition of Servigistics	127,033			12,800			139,833
Acquisition of NetIDEAS	—			10,196			10,196
Acquisition of Enigma	3,570			581			4,151
Foreign currency translation and other adjustments	4,476			92			4,568
Balance, September 30, 2013	$	720,548		$	48,547		$	769,095

The aggregate amortization expense for intangible assets with finite lives recorded for the years ended September 30, 2013, 2012 and 2011 was reflected in our consolidated statements of operations as follows:



	Year ended September 30,
	2013		2012		2011
	(in thousands)
Amortization of acquired intangible assets	$	26,486	$	20,303	$	18,319
Cost of license revenue	18,586		15,819		15,393
Total amortization expense	$	45,072	$	36,122	$	33,712

The estimated aggregate future amortization expense for intangible assets with finite lives remaining as of September 30, 2013 is $48.9 million for 2014, $47.1 million for 2015, $39.7 million for 2016, $35.9 million for 2017, $31.9 million for 2018, and $69.6 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.

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