Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2012

Goodwill and Other Intangible Assets [Abstract]

(8) Goodwill and Other Intangible Assets

We have goodwill, amortizable intangible assets and intangible assets that do not require amortization, as follows:

	June 30, 2012						December 31, 2011
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Goodwill	$	1,014.0	$	-	$	1,014.0	$	984.7	$	-	$	984.7
Intangible assets:
Amortizable:
Technology	$	19.6	$	19.6	$	-	$	19.6	$	19.6	$	-
Franchise agreements		18.0		15.2		2.8		18.0		14.3		3.7
Customer relationships		337.1		147.1		190.0		328.0		130.1		197.9
Other		13.4		12.0		1.4		13.5		12.1		1.4
		388.1		193.9		194.2		379.1		176.1		203.0
Non-Amortizable:
Trade names(1)		54.0		-		54.0		54.0		-		54.0
Reacquired franchise rights		97.9		-		97.9		97.9		-		97.9
		151.9		-		151.9		151.9		-		151.9
Total Intangible assets	$	540.0	$	193.9	$	346.1	$	531.0	$	176.1	$	354.9

(1) Balances were net of accumulated impairment loss of $139.5 as of both June 30, 2012 and December 31, 2011.

Changes in the carrying value of goodwill by reportable segment and Corporate were as follows:

	Americas(1)		Southern Europe(2)			Northern Europe			APME			Right Management		Corporate(3)			Total(4)
Balance, January 1, 2012	$	461.8	$	59.5		$	260.7		$	77.5		$	60.3		$	64.9	$	984.7
Goodwill acquired		4.8		28.3			-			-			-			-		33.1
Currency and other impacts		0.1		(1.4	)		(0.6	)		(2.2	)		0.3			-		(3.8	)
Balance, June 30, 2012	$	466.7	$	86.4		$	260.1		$	75.3		$	60.6		$	64.9	$	1,014.0

(1) Balances related to the United States were $448.3 and $448.5 as of January 1, 2012 and June 30, 2012, respectively.

(2) Balances related to France were $42.1 and $69.5 as of January 1, 2012 and June 30, 2012, respectively. Balances related to Italy were $5.4 and $5.2 as of January 1, 2012 and June 30, 2012, respectively.

(3) The majority of the Corporate balance relates to goodwill attributable to our acquisition of Jefferson Wells ($55.5) which is now part of the United States reporting unit. For purposes of monitoring our total assets by segment, we do not allocate the Corporate balance to the respective reportable segments as this is commensurate with how we operate our business. We do, however, include these balances within the appropriate reporting units for our goodwill impairment testing. See table below for the breakout of goodwill balances by reporting unit.

(4) Balances were net of accumulated impairment loss of $513.4 as of both January 1, 2012 and June 30, 2012.

Goodwill balances by reporting unit were as follows:

	June 30,		January 1,
	2012		2012
United States	$	504.0	$	503.8
Netherlands (Vitae)		77.5		79.3
France		69.5		42.1
Right Management		60.6		60.3
Other reporting units(1)		302.4		299.2
Total goodwill	$	1,014.0	$	984.7

(1) Elan reporting unit, which carried $123.8 of goodwill as of December 31, 2011, was integrated into other reporting units within our Northern Europe reportable segment as of January 1, 2012.

We did not perform an interim impairment test of our goodwill and indefinite-lived intangible assets in the six months ended June 30, 2012 as we noted no significant indicators of impairment as of June 30, 2012.

- 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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