Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]



5.	Goodwill and Other Intangible Assets

The following table provides the gross carrying amount and accumulated amortization for each class of intangible assets:



	December 31,
	2013							2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(in thousands)
Amortizable intangible assets:
Trademarks	$	1,230	$	(680	)	$	550	$	1,285	$	(571	)	$	714
Customer relationships	7,784		(4,340		)	3,444		9,643		(3,790		)	5,853
Total intangible assets	$	9,014	$	(5,020	)	$	3,994	$	10,928	$	(4,361	)	$	6,567

Our amortization expense related to purchased intangible assets other than goodwill was $2.0 million in 2013, $1.8 million in 2012 and $1.7 million in 2011, and is estimated to be $1.6 million in 2014, $1.3 million in 2015, $695,000 in 2016, $522,000 in 2017 and $79,000 in 2018.

During the fourth quarter of 2013 and 2012, we performed step one of the annual impairment testing for each of our reporting units and concluded the estimated fair value of our Expense Management and Performance Management reporting units, respectively, were below their respective carrying values. The declines in the estimated fair values of Expense Management and Performance Management resulted primarily from lower projected revenue growth rates and profitability levels. The timing of the lower revenue growth rates and profitability level revisions coincided with the timing of our overall forecasting process for all reporting units, which is performed in the fourth quarter of each calendar year. Upon completion of step two of the goodwill impairment test, we recognized goodwill and other intangible asset impairment write-downs of $3.3 million in 2013 related to our Expense Management reporting unit, and $4.2 million in 2012 related to our Performance Management reporting unit. The fair value of the reporting units was estimated using a discounted cash flow model, which we believe appropriately estimates the fair value of the reporting units. The material assumptions used in the model included the weighted average cost of capital and long-term growth rates. We consider this a Level 3 fair value measure.

The following table provides the gross carrying amount and accumulated impairment for goodwill:



	Year ended December 31,
	2013			2012
	(in thousands)
Gross amount:
Aggregate goodwill acquired	$	21,156		$	21,156
Accumulated impairment loss:
Beginning balance	(3,948		)	—
Impairment	(2,768		)	(3,948		)
Ending balance	(6,716		)	(3,948		)
Goodwill, net	$	14,440		$	17,208

- 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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