Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The change in the carrying value of goodwill for the year ended December 31, 2012 by our reportable segments, which are also our reporting units, are as follows (in thousands):

	Clear Aligner		Scanners and CAD/CAM Services			Total
Balance as of December 31, 2010	$	478	$	—		$	478
Goodwill from the Cadent acquisition	57,967		76,938			134,905
Balance as of December 31, 2011	58,445		76,938			135,383
Adjustment to goodwill (1)	98		346			444
Impairment of goodwill	—		(36,591		)	(36,591		)
Balance as of December 31, 2012	$	58,543	$	40,693		$	99,236

 ______________

(1) Pursuant to the accounting guidance for business combinations, we recorded goodwill adjustments for the effect on goodwill of changes to net assets acquired related our acquisition of Cadent during the measurement period (up to one year from April 29, 2011, the date of our acquisition of Cadent). Goodwill adjustments were not significant to our previously reported operating results or financial position.

Schedule Of Amortized Intangible Assets

Information regarding our intangible assets either as a direct result from the Cadent acquisition or individually acquired are being amortized as follows (in thousands):

	Gross Carrying Amount as of December 31, 2012		Accumulated Amortization			Net Carrying Value as of December 31, 2012
Trademarks	$	7,100	$	(895	)	$	6,205
Existing technology	12,600		(1,642		)	10,958
Customer relationships	33,500		(5,002		)	28,498
Other	125		(9		)	116
	$	53,325	$	(7,548	)	$	45,777

	Gross Carrying Amount as of December 31, 2011		Accumulated Amortization			Net Carrying Value as of December 31, 2011
Trademarks	$	7,100	$	(404	)	$	6,696
Existing technology	12,600		(735		)	11,865
Customer relationships	33,500		(2,039		)	31,461
	$	53,200	$	(3,178	)	$	50,022

Amortization Expense Of Acquired Intangible Assets

The following table summarizes the amortization expense of acquired intangible assets for the periods indicated (in thousands):

	Year Ended December 31, 2012		Year Ended December 31, 2011
Amortization of acquired intangible assets
In cost of revenue	$	907	$	735
In operating expense	3,464		2,443
Total	$	4,371	$	3,178

Schedule of Future Amortization For Finited-Lived Intangible Assets

The total estimated annual future amortization expense for these acquired intangible assets as of December 31, 2012 is as follows (in thousands):

Fiscal Year
2013	$	4,537
2014	4,492
2015	4,470
2016	4,470
2017	4,470
Thereafter	23,338
Total	$	45,777