Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2013

Goodwill and Other Intangible Assets [Abstract]

(3)	Goodwill and Other Intangible Assets

Goodwill

The change in the carrying amount of goodwill in the nine months ended September 30, 2013, is as follows:

	Total			Merge Healthcare		Merge DNA
Balance at December 31, 2012	$	214,312		$	194,115	$	20,197
Change due to foreign currency		(43	)		-		(43	)
Balance at September 30, 2013	$	214,269		$	194,115	$	20,154

Other Intangible Assets

Our intangible assets subject to amortization are summarized as of September 30, 2013 as follows:

	Weighted Average Remaining Amortization Period (Years)		Gross Carrying Amount		Accumulated Amortization
Purchased software		3.9	$	31,046	$	15,737
Capitalized software		1.2		1,824		1,647
Customer relationships		5.5		46,282		20,790
Backlog		1.3		9,680		9,310
Trade names		7.1		1,463		565
Non-competes		3.6		3,190		1,557
Total			$	93,485	$	49,606

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

For the remaining 3 months of the year ending:	2013	$	3,395
For the year ending December 31:	2014		12,260
2015			9,746
2016			7,701
2017			5,519
2018			3,283
Thereafter			1,975
Total		$	43,879

Amortization expense in the periods indicated is set forth in the following table:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Amortization included in cost of sales:
Purchased software	$	1,131	$	1,185	$	3,388	$	3,519
Capitalized software		38		54		113		157
Backlog		256		553		973		1,659
Total		1,425		1,792		4,474		5,335

Amortization included in operating expenses:
Customer relationships		1,971		1,873		5,777		5,560
Trade names		39		66		119		193
Non-competes		115		116		345		346
Total		2,125		2,055		6,241		6,099
Total amortization	$	3,550	$	3,847	$	10,715	$	11,434

- 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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