Goodwill and Identifiable Intangible Assets

6. Goodwill and Identifiable Intangible Assets. The changes in the carrying amount of goodwill for the year ended December 31, 2010 and the nine months ended September 30, 2011 were as follows (in thousands):

	Life Sciences			Healthcare			Physician		IT and Engineering		Total
Balance as of January 1, 2010
Gross goodwill	$	1,197		$	122,230		$	37,163	$	148,542	$	309,132
Accumulated impairment loss		-			(106,318	)		-		-		(106,318	)
		1,197			15,912			37,163		148,542		202,814
Cambridge acquisition		5,650			-			-		941		6,591
Sharpstream acquisition		5,714			-			-		-		5,714
Goodwill impairment		-			(15,399	)		-		-		(15,399	)
Balance as of December 31, 2010
Gross goodwill		12,561			122,230			37,163		149,483		321,437
Accumulated impairment loss		-			(121,717	)		-		-		(121,717	)
		12,561			513			37,163		149,483		199,720
Valesta acquisition (see Note 2)		16,097			-			-		-		16,097
HCP acquisition (see Note 2)		-			-			14,407		-		14,407
Translation adjustment		(296	)		-			-		-		(296	)
Balance as of September 30, 2011
Gross goodwill		28,362			122,230			51,570		149,483		351,645
Accumulated impairment loss		-			(121,717	)		-		-		(121,717	)
	$	28,362		$	513		$	51,570	$	149,483	$	229,928

Valesta goodwill includes measurement period adjustments of $0.5 million primarily related to a $0.2 million adjustment to deferred tax assets and a $0.3 million decrease in intangible assets.

During the third quarter of 2011, the Company recorded a $1.8 million increase in intangible assets with definite lives related to the HCP acquisition (see Note 2), which included customer relations of $1.0 million (2 year amortization period), contractor relations of $0.8 million (3 year amortization period) and non-compete agreements of $20,000 (2 year amortization period). The purchased identifiable intangible assets are amortized on an accelerated or straight-line basis over their respective useful lives depending on the intangible asset.

As of September 30, 2011 and December 31, 2010, the Company had the following acquired intangible assets (in thousands):

		September 30, 2011						December 31, 2010
	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Subject to amortization:
Customer relations	3 months - 10 years	$	11,181	$	7,556	$	3,625	$	7,740	$	6,830	$	910
Contractor relations	3 - 7 years		27,286		25,314		1,972		26,111		24,600		1,511
Non-compete agreements	2 - 3 years		917		540		377		470		371		99
In-use software	2 years		500		500		-		500		500		-
			39,884		33,910		5,974		34,821		32,301		2,520
Not subject to amortization:
Trademarks			25,151		-		25,151		22,650		-		22,650
Goodwill			229,928		-		229,928		199,720		-		199,720
Total		$	294,963	$	33,910	$	261,053	$	257,191	$	32,301	$	224,890

Amortization expense for intangible assets with finite lives was $0.7 million and $0.5 million for the three months ended September 30, 2011 and 2010, respectively. Amortization expense for intangible assets with finite lives was $1.6 million for the nine months ended September 30, 2011 and 2010. Estimated amortization for the remainder of this fiscal year, each of the next four fiscal years and thereafter are as follows (in thousands):

2011	$	720
2012		2,358
2013		1,452
2014		477
2015		231
Thereafter		736
	$	5,974

Goodwill and other intangible assets having an indefinite useful life are not amortized for financial statement purposes. Goodwill and intangible assets with indefinite lives are reviewed for impairment on an annual basis as of December 31 and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. There were no triggering events that required an interim impairment analysis during the current period.

- Definition

Discloses 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 or 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. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

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