2.2.0.7falseGoodwill and Intangible Assets0208 - Disclosure - Goodwill and Intangible Assetstruefalsefalsefalse1USDfalsefalseUSDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDEPSDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0SharesStandardhttp://www.xbrl.org/2003/instancesharesxbrli0$20ammd_GoodwillAndIntangibleAssetsAbstractammdfalsenadurationNo definition available.falsefalsefalsefalsefalsetruefalsefalsefalsefalsefalsefalse1falsefalsefalsefalse00falsefalsefalsexbrli:stringItemTypestringNo definition available.false31us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabelfalse1falsefalsefalsefalse00<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 8 - us-gaap:GoodwillAndIntangibleAssetsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>8. Goodwill and Intangible Assets</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The changes in the carrying amount of goodwill for the six month period ended July 3, 2010 were:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Six Months Ended</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left">(in thousands)</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">July 3, 2010</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000">   </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill, beginning of the period
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">690,899</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Allocation of goodwill to sale of non-strategic assets
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,400</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Effect of currency translation
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,815</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill, end of the period
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">682,684</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the first quarter of 2010, we sold the <i>Her Option<sup style="font-size: 85%; vertical-align: text-top">®</sup> </i>Global Endometrial Ablation product line
for $20.5 million and used the proceeds to pay down our debt. The final sale price after
adjustment based on working capital balances at the time of sale was $19.5 million. We allocated a
portion of our goodwill to the sale based on the relative fair value of the <i>Her Option<sup style="font-size: 85%; vertical-align: text-top">®</sup> </i>product
line and our remaining business. The consideration, less goodwill,
the carrying value of tangible
and intangible assets and related disposal costs resulted in a pre-tax gain of $7.7 million, which
is included in “gain on sale of non-strategic assets” in the Consolidated Statements of Operations.
As the majority of the goodwill that was allocated to the <i>Her Option<sup style="font-size: 85%; vertical-align: text-top">®</sup> </i>product line had no tax
basis, we recorded a $5.1 million tax provision against the gain resulting in an effective tax rate
of 65.7 percent of the gain on sale of <i>Her Option<sup style="font-size: 85%; vertical-align: text-top">®</sup></i>.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table provides additional information concerning intangible assets:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000">July 3, 2010</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000">January 2, 2010</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Gross carrying</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Accumulated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Net book</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Gross carrying</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Accumulated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Net book</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left">(in thousands)</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">amount</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">amortization</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">value</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">amount</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">amortization</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">value</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000">       </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 1px solid #000000">     </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Developed and core technology
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">132,953</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(87,708</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">45,245</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">137,553</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(85,922</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">51,631</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other intangibles
Amortized
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Patents
</div></td>
<td> </td>
<td> </td>
<td align="right">11,196</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(9,539</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,657</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,510</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(9,693</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,817</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Licenses
</div></td>
<td> </td>
<td> </td>
<td align="right">17,423</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(9,623</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">7,800</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,913</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(9,034</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">6,879</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Trademarks
</div></td>
<td> </td>
<td> </td>
<td align="right">2,233</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2,013</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">220</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,208</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,767</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">441</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 1px solid #000000">     </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 1px solid #000000">     </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total amortized other
intangible assets
</div></td>
<td> </td>
<td> </td>
<td align="right">30,852</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(21,175</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">9,677</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29,631</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(20,494</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">9,137</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Unamortized
Trademarks
</div></td>
<td> </td>
<td> </td>
<td align="right">40,800</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">40,800</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">40,800</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">40,800</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 1px solid #000000">     </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 1px solid #000000">     </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total other intangibles
</div></td>
<td> </td>
<td> </td>
<td align="right">71,652</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(21,175</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">50,477</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">70,431</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(20,494</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">49,937</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total intangible assets
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">204,605</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(108,883</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">95,722</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">207,984</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(106,416</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">101,568</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 3px double #000000">     </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 3px double #000000">     </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The estimated amortization expense for currently-owned intangibles, as presented above, for the
years 2010 through 2014 is $12.0 million, $11.3 million, $9.1 million, $9.0 million and $6.9
million, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the second quarter of 2009, we purchased a license for the exclusive rights to certain
patents through the year 2018 for $9.0 million, of which $7.2 million has been paid as of July 3,
2010, and the remaining $1.8 million is structured to be paid out within the next year, in
quarterly intervals. All payments related to the patents are included in licenses and will be
amortized over 7.7 years, which is the remaining useful life of the patents.
</div>
</div>
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<!-- Begin Block Tagged Notefalsefalsefalseus-types:textBlockItemTypetextblockDiscloses 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 or 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. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 42, 43, 44, 45, 46, 47
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