Citrix 2012 Annual Report Download - page 77

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F-11
The following table presents the change in goodwill allocated to the Company’s reportable segments during 2012 and
2011 (in thousands):
Balance at
January 1,
2012 Additions Other
Balance at
December
31, 2012
Balance at
January 1,
2011 Additions Other
Balance at
December 31,
2011
Enterprise division $ 956,504 $257,379 $(55,303) (2) $1,158,580 $ 733,720 $ 224,039 $ (1,255) $ 956,504
Online Services
division 282,616 26,481 50,542 (2) 359,639 187,380 98,725 (3,489) 282,616
Consolidated $ 1,239,120 $283,860 (1) $ (4,761) $1,518,219 $ 921,100 $ 322,764 (1) $ (4,744) $ 1,239,120
(1) Amount primarily relates to acquisitions. See Note 3 for more information regarding the Company’s acquisitions.
(2) Amount primarily relates to reclassification of goodwill between segments. In the first quarter of 2012, the Company
transferred the business acquired in its acquisition of Novell Labs, Inc. (d/b/a "ShareFile") from its Enterprise division to
its Online Services division. Also included in the Online Services division is foreign currency translation. See Note 3 for
more information regarding the Company's acquisitions and Note 11 for more information regarding the Company's
segments.
Intangible Assets
The Company has intangible assets which were primarily acquired in conjunction with business combinations and
technology purchases. Intangible assets with finite lives are recorded at cost, less accumulated amortization. Amortization is
recognized on a straight-line basis over the estimated useful lives of the respective assets, generally three to seven years, except
for patents, which are amortized over the lesser of their remaining life or ten years. In accordance with the authoritative
guidance, the Company records acquired product related intangible assets at net realizable value and reviews this technology
for impairment on a periodic basis by comparing the estimated net realizable value to the unamortized cost of the technology.
In-process R&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment
thereafter. When in-process R&D projects are completed, the corresponding amount is reclassified as an amortizable purchased
intangible asset and is amortized over the asset's estimated useful life.
Intangible assets consist of the following (in thousands):
December 31, 2012
Gross Carrying
Amount
Accumulated
Amortization
Weighted-
Average Life
Product related intangible assets $ 620,032 $ 339,608 5.60
Other 446,601 170,820 7.28
Total $ 1,066,633 $ 510,428 6.29
December 31, 2011
Gross Carrying
Amount
Accumulated
Amortization
Weighted-
Average Life
Product related intangible assets $ 472,582 $ 268,332 5.83
Other 274,816 135,694 6.83
Total $ 747,398 $ 404,026 6.20
Other intangible assets consist primarily of customer relationships, trade names, covenants not to compete and patents.
Amortization of product related intangible assets includes amortization of product related technologies and patents and is
reported as a Cost of net revenues in the accompanying consolidated statements of income. Amortization of other intangible
assets includes amortization of customer relationships, trade names and covenants not to compete and is reported as an
Operating expense in the accompanying consolidated statements of income. The Company monitors its intangible assets for
indicators of impairment. If the Company determines an impairment has occurred, it will write-down the intangible asset to its
fair value. For the year ended December 31, 2012, Amortization of other intangible assets includes a $5.2 million impairment
related to the Company's decision to contribute its CloudStack tradename acquired in conjunction with its acquisition of
Cloud.com to the Apache Software Foundation. As a result, the carrying value of the CloudStack tradename was written down
to zero. See Note 3 for more information regarding the Company's acquisitions.
CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS