Acquisitions

12 Months Ended

Dec. 31, 2011

Acquisitions

Acquisitions

(3) Acquisitions

        We have acquired certain businesses, as set forth below, that we have accounted for using the purchase method of accounting for business combinations and, accordingly, the accompanying Consolidated Financial Statements include the results of operations of each acquired business since the date of acquisition.

Acquisitions—2011

        During 2011, we paid $0.9 million of additional consideration related to a 2008 acquisition.

Acquisitions—2010

        In June 2010, our International division acquired the assets of Denmark-based SAP consulting company Segmenta A/S ("Segmenta"). The acquisition was completed to strengthen our European presence and expand our Danish operations. We paid $3.5 million in cash at closing, and we agreed to a future cash payment (contingent consideration) at the end of the 36-month period ending on May 31, 2013. The estimated fair value of the contingent consideration was based on a probability-weighted approach derived from management's own estimates of profitability and sales targets, as well as the discount rate used to determine the present value of the liability. As part of our purchase price allocation, we recorded an initial liability of $4.2 million for the present value of the estimated contingent consideration. In allocating the purchase price based on estimated fair values, we recorded goodwill and other intangible assets of $7.1 million and $1.6 million, respectively, and recorded net liabilities of $1.0 million.

        In 2011, we revised the agreement with the sellers to fix the value of the future acquisition-related contingent consideration at approximately $10 million, of which $2.1 million was paid in 2011 and the remainder will be paid in 2013. The change in management's estimates of the amount to be paid was recorded in "other income (expense), net" on the Consolidated Statements of Operations. The current balance of the liability is recorded in "other accrued expenses and liabilities" on the Consolidated Balance Sheets, and changes in the value of the liability from the date of the acquisition through December 31, 2011, were due to the following:

	Contingent Consideration
	(In thousands)
Beginning balance	$	4,220
Interest expense accretion		462
Foreign exchange rate changes		380
Balance at December 31, 2010		5,062
Change in fair value of acquisition-related contingent consideration		3,222
Interest expense accretion		676
Payments		(2,080	)
Foreign exchange rate changes		(404	)
Balance at December 31, 2011	$	6,476

Acquisitions—2009

        In January 2009, we acquired Iteamic Private Ltd. ("Iteamic") of Bangalore, India. Iteamic specialized in application development of offshore projects, primarily with companies in North America, and became part of our North America division. The acquisition added leadership and delivery skills depth to our India operations. The purchase price was $4.7 million, and was allocated as follows: $0.8 million to net tangible assets acquired and $3.9 million to goodwill.