Goodwill And Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets [Abstract]

11. GOODWILL AND INTANGIBLE ASSETS

As discussed in Note 4 to the Consolidated Financial Statements the disclosures of goodwill and intangible assets shown below include provisional amounts that are subject to measurement period adjustments.

Goodwill

The following table summarizes the changes in the carrying amount of goodwill for each reportable segment and in total during 2013 and 2012.

	ISS		Perceptive Software		Total
Balance at January 1, 2012	$	22.9	$	193.5	$	216.4
Goodwill acquired during the period		-		162.4		162.4
Foreign currency translation		0.3		(0.4	)	(0.1	)
Balance at December 31, 2012	$	23.2	$	355.5	$	378.7
Goodwill acquired during the period		-		79.3		79.3
Goodwill disposed during the period upon sale of business		(1.1	)	-		(1.1	)
Foreign currency translation		(1.3	)	0.4		(0.9	)
Balance at December 31, 2013	$	20.8	$	435.2	$	456.0

The Company has recorded $79.3 million of goodwill related to the acquisitions of AccessVia, Twistage, Saperion and PACSGEAR, including the $1.6 million net impact of measurement period adjustments determined subsequent to the acquisitions of AccessVia, Twistage and Saperion, related to income tax matters and other facts and circumstances that existed at the respective acquisition dates. The goodwill acquired in the acquisition of Saperion is a provisional amount. Measurement period adjustments determined in 2013 related to the Company's acquisition of Acuo in the fourth quarter of 2012 were applied retrospectively, increasing the balance of goodwill at December 31, 2012 by $1.9 million. The goodwill balance was reduced in 2013 by $1.1 million upon the sale of the inkjet-related technology and assets. Refer to Note 4 of the Notes to Consolidated Financial Statements for additional details regarding business combinations occurring during 2013, 2012, and 2011, as well as information related to divestitures. The Company does not have any accumulated impairment charges as of December 31, 2013.

Intangible Assets

The following table summarizes the gross carrying amounts and accumulated amortization of the Company's intangible assets.

	December 31, 2013						December 31, 2012
			Accum						Accum
	Gross		Amort		Net		Gross		Amort		Net

Intangible assets subject to amortization:
Customer relationships	$	117.7	$	(34.6	)$	83.1	$	84.0	$	(19.8	)$	64.2
Non-compete agreements		2.8		(2.3	)	0.5		2.5		(1.7	)	0.8
Technology and patents		243.4		(104.5	)	138.9		193.8		(65.7	)	128.1
Trade names and trademarks		42.8		(7.8	)	35.0		8.0		(2.9	)	5.1
Total		406.7		(149.2	)	257.5		288.3		(90.1	)	198.2

Intangible assets not subject to amortization:
In-process technology		0.5		-		0.5		0.9		-		0.9
Trade names and trademarks		-		-		-		32.3		-		32.3
Total		0.5		-		0.5		33.2		-		33.2

Total identifiable intangible assets	$	407.2	$	(149.2	)$	258.0	$	321.5	$	(90.1	)$	231.4

Intangible assets acquired in a transaction accounted for as a business combination are initially recognized at fair value. Intangible assets acquired in a transaction accounted for as an asset acquisition are initially recognized at cost. Of the $407.2 million gross carrying amount at December 31, 2013, $385.7 million were acquired in transactions accounted for as business combinations, $0.7 million consisted of negotiated non-compete agreements recognized separately from a business combination and $20.8 million were acquired in transactions accounted for as asset acquisitions.

The year-to-date increases in the intangible assets above were driven by business combinations discussed in Note 4 of the Notes to Consolidated Financial Statements. Amortization expense related to intangible assets was $59.2 million, $44.3 million, and $23.7 million for the years ended December 31, 2013, 2012, and 2011, respectively. The following table summarizes the estimated future amortization expense for intangible assets that are currently being amortized.

Fiscal year:
2014	$	69.6
2015		59.7
2016		51.1
2017		35.2
2018		22.7
Thereafter		19.2
Total	$	257.5

In-process technology refers to research and development efforts that were in process on the date the Company acquired Saperion. Under the accounting guidance for intangible assets, in-process research and development acquired in a business combination is considered an indefinite lived asset until completion or abandonment of the associated research and development efforts. The Company begins amortizing its in-process technology assets upon completion of the projects.

The Company reevaluated the indefinite useful life assumption for its Perceptive Software trade name asset during the period as required under the accounting guidance for indefinite-lived intangible assets. The asset, which was originally valued at $32.3 million, was deemed to no longer have an indefinite useful life following changes in management's expected use of the name as evidenced by the centralization of the Company's marketing organization across ISS and Perceptive Software during the fourth quarter of 2013. Accordingly, the Company commenced amortization and currently intends to amortize the asset over a five-year period. The Company's expected use of its acquired trade names and trademarks could change in future periods as the Company considers alternatives for going to market with its acquired software and solutions products.

The Company accounts for its internal-use software, an intangible asset by nature, in Property, plant and equipment, net on the Consolidated Statements of Financial Position. Refer to Note 10 of the Notes to Consolidated Financial Statements for disclosures regarding internal-use software.

- 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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