Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Other Intangible Assets [Abstract]

(4)	Goodwill and Other Intangible Assets

Goodwill

Goodwill is our primary intangible asset not subject to amortization. The changes in carrying amount in the years ended December 31, 2012 and 2011 was as follows:



				Merge		Merge
	Total			Healthcare		DNA
Balance at January 1, 2010	$	169,533			-		-
Increase due to acquisitions		40,333			-		-
Increase due to foreign currency		(37	)		-		-
Balance at December 31, 2011	$	209,829			-		-
Increase due to acquisitions		4,431			-		-
Allocation in operating segments		-		$	194,115	$	20,145
Increase due to foreign currency		52			-		52
Balance at December 31, 2012	$	214,312		$	194,115	$	20,197

Other Intangible Assets

Our intangible assets subject to amortization are summarized as of December 31, 2012 and 2011 as follows:

			December 31, 2012					December 31, 2011
	Weighted-Average Remaining Amortization Period (Years)		Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Purchased software		4.6	$	31,066	$	(12,350	)	$	31,382	$	(7,955	)
Capitalized software		1.9		1,825		(1,534	)		1,825		(1,328	)
Customer relationships		6.2		46,302		(15,012	)		45,068		(7,576	)
Backlog		1.4		9,680		(8,338	)		9,680		(6,127	)
Trade names		7.7		1,463		(446	)		2,081		(413	)
Non-competes		4.3		3,190		(1,211	)		3,230		(791	)
Total			$	93,526	$	(38,891	)	$	93,266	$	(24,190	)

As a result of an insignificant acquisition in the twelve months ended December 31, 2012, we increased the gross carrying amounts of purchased software, customer relationships, and trade names by $780, $1,220, and $80, respectively. Upon completion of a product rationalization and a product being rebranded in the fourth quarter of 2012, we recorded a $796 impairment charge to purchased software and a $474 impairment charge to trade names. We also wrote off the fully amortized gross carrying amounts and the accumulated amortization related to the purchased software and trade name of $1,110 and $620, respectively, in 2012.

In 2011, we increased the gross carrying amount of purchased software, customer relationships, backlog, trade names and non-competes by $2,438, $6,940, $1,580, $710 and $130, respectively, as a result of insignificant acquisitions. Upon completion of a product rebranding initiative in the second quarter of 2011, we recorded a $2,805 charge due to the impairment of our trade names associated with certain products. In the second quarter of 2011, we wrote off $5,635 and $3,476, respectively, of the gross carrying amount and accumulated amortization of certain purchased software assets and customer relationship assets which were fully amortized. We also wrote off fully amortized gross carrying amounts and accumulated amortization of $3,157 in trade name assets.

Estimated aggregate amortization expense for our intangible assets, which become fully amortized in 2022, for the remaining periods is as follows:

For the year ended December 31,
2013	$	14,021
2014		12,367
2015		9,750
2016		7,706
2017		5,524
Thereafter		5,267
Total	$	54,635

Amortization expense, including impairments for our intangible assets, is set forth in the following table:

	Year Ended December 31,
	2012		2011		2010
Amortization and impairment included in cost of sales
Purchased software	$	5,501	$	4,915	$	7,100
Capitalized software		205		189		583
Backlog		2,211		3,745		2,245
Total	$	7,917	$	8,849	$	9,928

Amortization and impairment included in operating expenses
Customer relationships	$	7,434	$	5,667	$	3,183
Trade names		732		3,241		315
Non-competes		461		496		295
Total		8,627		9,404		3,793
Total amortization and impairment	$	16,544	$	18,253	$	13,721

- 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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