Goodwill and Intangible Assets

12 Months Ended

Aug. 31, 2012

GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

GOODWILL AND OTHER INTANGIBLE ASSETS

The changes in the Company’s carrying value of goodwill during the years ended August 31, 2012 and 2011 are as follows:



	EMEA			Americas			Total
	(In thousands)
Balance as of August 31, 2010	$	28,130		$	55,934		$	84,064
Acquisitions	—			4,193			4,193
Translation and other	2,819			677			3,496
Balance as of August 31, 2011	30,949			60,804			91,753
Acquisitions	40,718			—			40,718
Translation and other	(3,127		)	(991		)	(4,118		)
Balance as of August 31, 2012	$	68,540		$	59,813		$	128,353

The increase in goodwill during fiscal 2012 is primarily due to the acquisition of Elian. The increase in goodwill during fiscal 2011 primarily relates to the acquisition of Mash and the effect of currency translation.

The Company completed its annual impairment review of goodwill as of June 1, 2012 and noted no impairment. In addition, the Company is not aware of any triggers which would require a goodwill impairment test as of August 31, 2012. The fair value used in the analysis was established using a combination of the income and market approaches. These valuation methodologies use estimates and assumptions including, but not limited to, the determination of appropriate market comparables, projected future cash flows (including timing and profitability), discount rate reflecting the risk inherent in future cash flows, perpetual growth rate, and projected future economic and market conditions.

The following table summarizes intangible assets with determinable useful lives by major category as of August 31, 2012 and 2011:



	2012							2011
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(In thousands)
Customer related intangibles	$	74,039	$	(13,263	)	$	60,776	$	59,948	$	(7,428	)	$	52,520
Developed technology	19,189		(3,258		)	15,931		13,522		(2,273		)	11,249
Registered trademarks and tradenames	16,344		(3,013		)	13,331		13,751		(1,445		)	12,306
Total finite-lived intangible assets	$	109,572	$	(19,534	)	$	90,038	$	87,221	$	(11,146	)	$	76,075

Amortization expense of intangible assets was $9.1 million, $7.9 million and $2.3 million for fiscal 2012, 2011 and 2010, respectively. The weighted-average useful life of our finite-lived intangible assets as of August 31, 2012 is 13.3 years.

Estimated future amortization expense of intangible assets is as follows:



	Estimated Future Amortization Expense
	(In thousands)
Year ended August 31,
2013	$	9,190
2014	8,553
2015	8,095
2016	7,564
2017	7,177

- 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