Goodwill and Intangible Assets

5. Goodwill and Intangible Assets

The change in the carrying value of goodwill for the three months ended June 30, 2011 is as follows (in thousands):


Balance as of December 31, 2010	$	86,217
Nexius, Inc. net working capital and tax adjustments		704
Nedstat acquired deferred revenue adjustments		103
Translation adjustments		1,886


Balance as of June 30, 2011	$	88,910

Certain of the Company’s goodwill and intangible assets are recorded in euros, British Pounds and the local currencies of its South American subsidiaries, and therefore, the gross carrying amount and accumulated amortization are subject to foreign currency translation adjustments.The carrying values of the Company’s finite-lived acquired intangible assets are as follows (in thousands):


	June 30, 2011							December 31, 2010
	Gross					Net		Gross					Net
	Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	Amount		Amortization			Amount		Amount		Amortization			Amount
Acquired methodologies/technology	$	10,795	$	(2,470	)	$	8,325	$	10,157	$	(1,633	)	$	8,524
Customer relationships		39,893		(5,643	)		34,250		38,471		(3,140	)		35,331
Panel		1,634		(720	)		914		1,615		(597	)		1,018
Intellectual property		2,569		(792	)		1,777		2,561		(662	)		1,899
Trade names		4,202		(1,595	)		2,607		4,069		(581	)		3,488


	$	59,093	$	(11,220	)	$	47,873	$	56,873	$	(6,613	)	$	50,260

During the quarter ended June 30, 2011, the Company decided to cease using the ARS trade name effective December 31, 2011. Accordingly, the net book value of the ARS trade name of $1.2 million will be amortized over the nine months ending December 31, 2011.

Amortization expense related to intangible assets was approximately $2.4 million and $4.4 million for the three and six months ended June 30, 2011, respectively, and $0.7 million and $1.2 million for the three and six months ended June 30, 2010, respectively.

The weighted average remaining amortization period by major asset class as of June 30, 2011, is as follows:


	(In years)
Acquired methodologies/technology		5.9
Customer relationships		7.9
Panel		3.9
Intellectual property		6.9
Trade names		1.8

The estimated future amortization of acquired intangible assets as of June 30, 2011 is as follows:


	(In thousands)
2011	$	4,849
2012		7,810
2013		7,156
2014		7,000
2015		6,011
Thereafter		15,047


	$	47,873

- 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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