Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and intangible assets consisted of the following:



(in thousands, except years)	Weighted- Average Amortization Period (in years)	Gross Amount		Accumulated Amortization			Intangible Assets, net
September 30, 2014:
Intangible Assets Subject to Amortization:
Purchased technology:
Developed technology	10	$	51,620	$	(26,342	)	$	25,278
Manufacturing know-how and trade secrets	12	21,918		(11,215		)	10,703
Trade name and trademarks	11	9,500		(4,056		)	5,444
Customer relationships	8	43,167		(23,022		)	20,145
Total intangible assets subject to amortization	10	$	126,205	$	(64,635	)	$	61,570

Intangible Assets Not Subject to Amortization:
In-process research and development							10,640
Goodwill							154,512
Total goodwill and intangible assets, net							$	226,722



	Weighted- Average Amortization Period (in years)	Gross Amount		Accumulated Amortization			Intangible Assets, net
December 31, 2013:
Intangible Assets Subject to Amortization:
Purchased technology:
Developed technology	10	$	62,328	$	(21,359	)	$	40,969
Manufacturing know-how and trade secrets	12	21,997		(9,890		)	12,107
Trade name and trademarks	11	9,500		(3,317		)	6,183
Customer relationships	8	43,871		(19,784		)	24,087
Total intangible assets subject to amortization	10	$	137,696	$	(54,350	)	$	83,346

Intangible Assets Not Subject to Amortization:
In-process research and development							10,640
Goodwill							154,944
Total goodwill and intangible assets, net							$	248,930

Total expense related to the amortization of intangible assets was $3.1 million and $5.0 million for the three months ended September 30, 2014 and 2013, respectively, and $10.5 million and $14.3 million for the nine months ended September 30, 2014 and 2013, respectively. In-process research and development will be amortized beginning on the regulatory approval date of the respective acquired products and will be amortized over the estimated useful life determined at that time.

During the nine months ended September 30, 2014, the Company recorded an impairment charge of $10.7 million related to the developed technology for the PCM device acquired from Cervitech in 2009. The primary factor contributing to this impairment charge was the reduction in management's estimates of current and future revenue and the related cash flows due to updated views of the competitive and regulatory landscape in the cervical market.

Total future amortization expense related to intangible assets subject to amortization at September 30, 2014 is set forth in the table below:



(in thousands)
Remaining 2014	$	3,030
2015	11,707
2016	11,243
2017	8,892
2018	7,863
2019	6,509
Thereafter through 2026	12,326
Total future amortization expense	$	61,570

- 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.

+ References+ Details