Intangible Assets and Goodwill

3 Months Ended

Feb. 28, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible assets are comprised of the following significant classes (in thousands):



	February 28, 2015							November 30, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	118,167	$	(43,797	)	$	74,370	$	53,789	$	(39,575	)	$	14,214
Customer-related and other	67,617		(17,744		)	49,873		20,554		(15,195		)	5,359
Trademarks and trade names	15,330		(3,722		)	11,608		4,130		(3,125		)	1,005
Total	$	201,114	$	(65,263	)	$	135,851	$	78,473	$	(57,895	)	$	20,578

As a result of the acquisition of Telerik AD in December 2014 (Note 6), we recorded $64.8 million of purchased technology, $47.1 million of customer-related and other, and $11.2 million of trademarks and trade names as intangible assets during the three months ended February 28, 2015. These intangibles have a weighted average useful life of 5 years.

In the first quarter of fiscal years 2015 and 2014, amortization expense related to intangible assets was $7.8 million and $0.7 million, respectively.

Future amortization expense for intangible assets as of February 28, 2015, is as follows (in thousands):



Remainder of 2015	$	21,742
2016	28,499
2017	28,499
2018	27,686
2019	26,561
Thereafter	2,864
Total	$	135,851

Goodwill

Changes in the carrying amount of goodwill in the three months ended February 28, 2015, are as follows (in thousands):



Balance, November 30, 2014	$	232,836
Additions	137,921
Translation adjustments	(132		)
Balance, February 28, 2015	$	370,625

The addition to goodwill during the first quarter of fiscal year 2015 is related to the acquisition of Telerik AD in December 2014 (Note 6).

As of February 28, 2015, the amount of goodwill allocated to each of our three reporting units is as follows (in thousands):



OpenEdge	$	212,171
Data Connectivity and Integration	19,040
Application Development and Deployment	139,414
Balance, February 28, 2015	$	370,625

During the fourth quarter of fiscal year 2014, we completed our annual testing for impairment of goodwill and, based on those tests, concluded that no impairment of goodwill existed as of October 31, 2014. As of February 28, 2015, no triggering events have occurred that would indicate a potential impairment of goodwill exists.

- 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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