Goodwill and Intangible Assets, net
Changes in goodwill were as follows for the years ended December 31:
|
| | | | | | | | |
| | 2013 | | 2012 |
Balance, beginning of year | | $ | 309,185 |
| | $ | 288,772 |
|
Business combinations | | 129,886 |
| | 19,096 |
|
Cumulative translation adjustments | | 5,165 |
| | 1,317 |
|
Balance, end of year | | $ | 444,236 |
| | $ | 309,185 |
|
In 2013 and 2012, the increase in goodwill was primarily related to business combinations completed during the period. No impairment losses were recognized during the three years ended December 31, 2013.
Goodwill has been allocated to our reportable segments as follows as of December 31:
|
| | | | | | | | |
| | 2013 | | 2012 |
Financial Services | | $ | 208,588 |
| | $ | 137,677 |
|
Healthcare | | 107,409 |
| | 78,977 |
|
Manufacturing/Retail/Logistics | | 71,644 |
| | 48,304 |
|
Other | | 56,595 |
| | 44,227 |
|
Total goodwill | | $ | 444,236 |
| | $ | 309,185 |
|
Components of intangible assets were as follows as of December 31:
|
| | | | | | | | | | | | |
| | 2013 |
| | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount |
Customer relationships | | $ | 203,543 |
| | $ | (88,159 | ) | | $ | 115,384 |
|
Developed technology | | 4,250 |
| | (2,994 | ) | | 1,256 |
|
Other | | 21,438 |
| | (6,804 | ) | | 14,634 |
|
Total intangible assets | | $ | 229,231 |
| | $ | (97,957 | ) | | $ | 131,274 |
|
| | | | | | |
| | 2012 |
| | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount |
Customer relationships | | $ | 142,653 |
| | $ | (67,058 | ) | | $ | 75,595 |
|
Developed technology | | 4,222 |
| | (2,204 | ) | | 2,018 |
|
Other | | 13,921 |
| | (4,059 | ) | | 9,862 |
|
Total intangible assets | | $ | 160,796 |
| | $ | (73,321 | ) | | $ | 87,475 |
|
All of the intangible assets have finite lives and as such are subject to amortization. Amortization of intangible assets totaled $24,249 for 2013, $19,027 for 2012, and $16,918 for 2011. During 2013, 2012 and 2011, amortization of $7,729, $7,499 and $6,774, respectively, relating to customer relationship intangible assets was recorded as a reduction of revenues. These intangible assets are attributed to direct revenue contracts with sellers of acquired businesses.
Estimated amortization expense related to our existing intangible assets for the next five years are as follows:
|
| | | |
| |
Year | Amount |
2014 | $ | 26,779 |
|
2015 | 21,308 |
|
2016 | 19,635 |
|
2017 | 16,934 |
|
2018 | 11,606 |
|
