We estimate the recoverability of acquired intangible assets and other
long-lived assets that have finite useful lives by comparing the carrying amount
of the asset to the future undiscounted cash flows that we expect the asset to
generate. In order to estimate the fair value of those assets, we estimate the
present value of future cash flows from those assets. The key assumptions that
we use in our discounted cash flow model are the amount and timing of estimated
future cash flows to be generated by the asset over an extended period of time
and a rate of return that considers the relative risk of achieving the cash
flows and the time value of money. Significant judgment is required to estimate
the amount and timing of future cash flows and the relative risk of achieving
those cash flows. We also make judgments about the remaining useful lives of
acquired intangible assets and other long-lived assets that have finite lives.
We had a total of
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During the fourth quarters of fiscal 2013 and 2012 we performed our annual goodwill impairment tests. Using the methodology described in "Description of Business and Summary of Significant Accounting Policies - Goodwill, Acquired Intangible Assets and Other Long-Lived Assets," in Note 1 to the financial statements in Part 8 of this Report, we determined that the estimated fair values of all of our reporting units exceeded their carrying values and that they were not impaired. In addition, during this analysis we concluded that the estimated fair values of all of our reporting units substantially exceeded their carrying values. During the fourth quarter of fiscal 2011 we performed our annual goodwill impairment test. As described in Note 1, in step one of that test we compared the estimated fair value of each reporting unit to its carrying value. The estimated fair values of all of our reporting units except
Intuit Healthexceeded their carrying values and we concluded that they were not impaired. During this analysis we also concluded that the estimated fair values of all of our reporting units except Intuit Healthsubstantially exceeded their carrying values. We completed step two of the test for our Intuit Healthreporting unit and determined that the goodwill and acquired intangible assets associated with it were impaired. Consequently, we recorded a goodwill and intangible asset impairment charge of approximately $30 millionin fiscal 2011. The market for online patient-to-provider communication solutions is dynamic and competition is intense. Circumstances that negatively affected our estimate of the fair value of our Intuit Healthreporting unit included unforeseen delays in developing high quality, timely offerings and marketing them effectively. In March 2013the largest customer for our Intuit Healthbusiness acquired a company that offers similar solutions and competes with us directly in that market space. As a result, we performed an interim impairment test of goodwill and acquired intangible assets during the third quarter of fiscal 2013. We concluded that the carrying amounts of goodwill and certain definite-lived acquired intangible assets associated with our Intuit Healthbusiness were impaired and recorded an impairment charge of approximately $46 millionthat reduced the carrying value of those assets to zero. See "Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis," in Note 2 to the financial statements in Item 8 of this Report for more information. In the fourth quarter of fiscal 2013 management approved a plan to sell our Intuit Healthbusiness and we accounted for it as discontinued operations. On August 19, 2013we completed the sale for cash consideration that was not significant. Intuit Healthwas part of our Other Businesses reportable segment.