GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill by reportable business segment at December 31, 2014, 2013 and 2012 (in thousands):



	North America			Europe			Asia Pacific			Total
Gross value at December 31, 2012	$	364,563		$	20,216		$	5,417		$	390,196
Accumulated impairment losses prior to December 31, 2012	(92,423		)	—			—			(92,423		)
Carrying value at December 31, 2012	272,140			20,216			5,417			297,773
Acquisitions	15,049			29,941			1,751			46,741
Impact of currency fluctuations	(1,455		)	(953		)	(724		)	(3,132		)
Carrying value at December 31, 2013	285,734			49,204			6,444			341,382
Acquisitions	52,883			920			—			53,803
Adjustments to prior acquisitions	(625		)	(459		)	(100		)	(1,184		)
Impact of currency fluctuations	(1,904		)	(5,232		)	(449		)	(7,585		)
Carrying value at December 31, 2014	$	336,088		$	44,433		$	5,895		$	386,416

Goodwill is not subject to amortization but is subject to periodic reviews for impairment. Goodwill due to the acquisitions of TalkPoint and Central Desktop has been determined on a consolidated basis and preliminarily allocated to reporting units. A formal allocation to reporting units has not yet been completed. Refer to Note 12 to our consolidated financial statements for additional information on goodwill acquired.

Intangible Assets

Summarized below are the carrying values and accumulated amortization by intangible asset class at December 31, 2014 and 2013 (in thousands):



	2014							2013
	Gross carrying value		Accumulated amortization			Net carrying value		Gross carrying value		Accumulated amortization			Net carrying value
Intangible assets:
Customer lists	$	138,149	$	(69,904	)	$	68,245	$	131,943	$	(63,564	)	$	68,379
Non-compete agreements	13,170		(6,891		)	6,279		9,436		(5,851		)	3,585
Developed technology	23,000		(1,843		)	21,157		1,000		(1,000		)	—
Other	8,809		(2,140		)	6,669		8,003		(1,330		)	6,673
Total intangible assets	$	183,128	$	(80,778	)	$	102,350	$	150,382	$	(71,745	)	$	78,637

We record fees incurred in connection with our patents and trademarks in “Prepaid expenses and other current assets” in our consolidated balance sheets until the patents are issued and trademarks are registered or abandoned. We had $1.0 million and $0.9 million of these assets recorded at December 31, 2014 and 2013, respectively.

Intangible assets include $100.9 million of net intangible assets at December 31, 2014 that are subject to amortization. Intangible assets that are subject to amortization are amortized over an estimated useful life between one and 20 years. These amounts are incorporated into our valuation of assets acquired and liabilities assumed within Note 12 to our consolidated financial statements. Intangible assets with indefinite lives that are not subject to amortization include $0.4 million of domain names and $1.0 million of trademarks. Amortization expense related to our other intangible assets for the years ended December 31, 2014, 2013 and 2012 was approximately $11.2 million, $3.5 million and $4.0 million, respectively.

Estimated amortization expense for the next five years is as follows (in thousands):



	Year		Estimated amortization expense

	2015		$15,177
	2016		$14,746
	2017		$13,742
	2018		$12,838
	2019		$11,122

- 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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