| Goodwill and Acquired Intangible Assets |
| 6. |
|
GOODWILL AND ACQUIRED INTANGIBLE ASSETS |
The change in the carrying value of goodwill for the six months ended May 31, 2011 is as follows (in thousands):
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|
Balance as of November 30, 2010 |
|
$ |
409,545 |
|
|
Goodwill adjustment for the Kabira acquisition(1) |
|
|
464 |
|
|
Goodwill adjustment for the OpenSpirit acquisition(1) |
|
|
(237 |
) |
|
Goodwill recorded for the Loyalty Lab acquisition |
|
|
12,355 |
|
|
Foreign currency translation |
|
|
19,440 |
|
| |
|
|
|
|
|
Balance as of May 31, 2011 |
|
$ |
441,567 |
|
| |
|
|
|
|
| (1) |
Pursuant to our business combinations accounting policy, we record goodwill adjustments for the effect on goodwill changes to net assets acquired during the measurement period (up to one year from the date of an acquisition). Goodwill adjustments were not significant to our previously reported operating results or financial position. |
Certain of our intangible assets were recorded in foreign currencies, and therefore, the gross carrying amount and accumulated amortization are subject to foreign currency translation adjustments. The carrying values of our amortized acquired intangible assets as of May 31, 2011 and November 30, 2010 are as follows (in thousands):
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May 31, 2011 |
|
|
November 30, 2010 |
|
| |
|
Gross
Carrying
Amount |
|
|
Accumulated
Amortization |
|
|
Net
Carrying
Amount |
|
|
Gross
Carrying
Amount |
|
|
Accumulated
Amortization |
|
|
Net
Carrying
Amount |
|
|
Developed technologies |
|
$ |
137,015 |
|
|
$ |
(100,479 |
) |
|
$ |
36,536 |
|
|
$ |
129,492 |
|
|
$ |
(85,589 |
) |
|
$ |
43,903 |
|
|
Customer base |
|
|
56,408 |
|
|
|
(36,156 |
) |
|
|
20,252 |
|
|
|
49,433 |
|
|
|
(31,606 |
) |
|
|
17,827 |
|
|
Patents/core technologies |
|
|
29,020 |
|
|
|
(20,985 |
) |
|
|
8,035 |
|
|
|
27,628 |
|
|
|
(17,373 |
) |
|
|
10,255 |
|
|
Trademarks |
|
|
9,161 |
|
|
|
(6,835 |
) |
|
|
2,326 |
|
|
|
8,334 |
|
|
|
(6,103 |
) |
|
|
2,231 |
|
|
Non-compete agreements |
|
|
580 |
|
|
|
(575 |
) |
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|
5 |
|
|
|
1,580 |
|
|
|
(1,541 |
) |
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|
39 |
|
|
Maintenance agreements |
|
|
60,690 |
|
|
|
(35,185 |
) |
|
|
25,505 |
|
|
|
57,915 |
|
|
|
(29,052 |
) |
|
|
28,863 |
|
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|
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|
Total intangible assets subject to amortization |
|
|
292,874 |
|
|
|
(200,215 |
) |
|
|
92,659 |
|
|
|
274,382 |
|
|
|
(171,264 |
) |
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|
103,118 |
|
|
In-process research and development |
|
|
1,700 |
|
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|
— |
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|
1,700 |
|
|
|
1,700 |
|
|
|
— |
|
|
|
1,700 |
|
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Total intangible assets, net |
|
$ |
294,574 |
|
|
$ |
(200,215 |
) |
|
$ |
94,359 |
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|
$ |
276,082 |
|
|
$ |
(171,264 |
) |
|
$ |
104,818 |
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Amortization of developed technologies is recorded in cost of revenue, while the amortization of other acquired intangible assets is included in operating expenses. The following summarizes the amortization expense of acquired intangible assets for the periods indicated (in thousands):
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Three Months Ended
May 31, |
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Six Months Ended
May 31, |
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|
2011 |
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2010 |
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2011 |
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2010 |
|
|
Amortization of acquired intangible assets: |
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In cost of revenue |
|
$ |
4,948 |
|
|
$ |
3,920 |
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|
$ |
9,743 |
|
|
$ |
7,534 |
|
|
In operating expense |
|
|
5,030 |
|
|
|
3,976 |
|
|
|
9,921 |
|
|
|
7,684 |
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Total |
|
$ |
9,978 |
|
|
$ |
7,896 |
|
|
$ |
19,664 |
|
|
$ |
15,218 |
|
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