RealPage, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2012

5. Goodwill and Other Intangible Assets

The change in the carrying amount of goodwill is as follows:


	(in thousands)
Balance at December 31, 2010	$	73,885
Goodwill acquired		55,500
Other		(93	)

Balance at December 31, 2011		129,292
Goodwill acquired		5,893
Other		(1,160	)

Balance at December 31, 2012	$	134,025

Other intangible assets consisted of the following at December 31, 2012 and 2011:


			December 31, 2012							December 31, 2011
	Amortization Period		Carrying Amount		Accumulated Amortization			Net		Carrying Amount		Accumulated Amortization			Net
	(in thousands)
Finite-lived intangible assets:
Developed technologies		3 years	$	32,983	$	(23,215	)	$	9,768	$	25,963	$	(14,847	)	$	11,116
Customer relationships		1-10 years		77,847		(24,151	)		53,696		74,233		(14,949	)		59,284
Vendor relationships		7 years		5,650		(4,052	)		1,598		5,650		(3,316	)		2,334

Total finite-lived intangible assets				116,480		(51,418	)		65,062		105,846		(33,112	)		72,734
Indefinite-lived intangible assets:
Trade names				39,578		—			39,578		39,574		—			39,574

Total intangible assets			$	156,058	$	(51,418	)	$	104,640	$	145,420	$	(33,112	)	$	112,308

There was no impairment of goodwill or trade names indicated during 2012 or 2011. In 2012 and 2011, we paid $0.4 million and $1.9 million to acquire domain names and other intangible assets. Amortization of finite-lived intangible assets was $18.3 million, $16.2 million and $9.4 million for the years ended December 31, 2012, 2011 and 2010, respectively.

As of December 31, 2012, the following table sets forth the estimated amortization of intangible assets for the years ending December 31:


	(in thousands)
2013	$	14,271
2014		13,086
2015		9,592
2016		7,307
2017		6,135

- 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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