RealPage, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2011

Goodwill and Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets

5. Goodwill and Other Intangible Assets

The change in the carrying amount of goodwill for the nine months ended September 30, 2011 is as follows:


	(in thousands)
Balance at December 31, 2010	$	73,885
Goodwill acquired in 2011		54,840
Other		(93	)

Balance at September 30, 2011	$	128,632

Other intangible assets consisted of the following at September 30, 2011 and December 31, 2010:


		September 30, 2011							December 31, 2010
	Amortization	Carrying		Accumulated					Carrying		Accumulated
	Period	Amount		Amortization			Net		Amount		Amortization			Net
	(in thousands)
Finite-lived intangible assets
Developed technologies	3 years	$	24,938	$	(12,982	)	$	11,956	$	21,082	$	(7,618	)	$	13,464
Customer relationships	1-10 years		74,183		(12,702	)		61,481		34,923		(6,932	)		27,991
Vendor relationships	7 years		5,650		(3,127	)		2,523		5,650		(2,480	)		3,170
Option to purchase building	1 year		131		(120	)		11		131		(22	)		109
Non-competition agreement	4-5 years		120		(120	)		—		120		(112	)		8

Total finite-lived intangible assets			105,022		(29,051	)		75,971		61,906		(17,164	)		44,742
Indefinite-lived intangible assets Tradenames			39,170		—			39,170		9,619		—			9,619

Total intangible assets		$	144,192	$	(29,051	)	$	115,141	$	71,525	$	(17,164	)	$	54,361

Amortization of finite-lived intangible assets was $4.3 million, $2.5 million, $11.9 million and $6.3 million for the three months ended September 30, 2011 and 2010 and the nine months ended September 2011 and 2010, respectively.

- 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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