Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 6 - GOODWILL AND OTHER INTANGIBLE ASSETS:

Goodwill

Goodwill relates to the Production Solutions for the Electronics Industry segment.

Composition of goodwill and changes therein the years ended December 31, 2017 and 2016 are as follows:


	December 31
	2017		2016
	$ in thousands
Balance at the beginning of year		176,374		170,177
Acquired during the year		1,112		6,197

Balance at the end of year		177,486		176,374

Other intangible assets

Other intangible assets are composed as follows:


	December 31
	2017		2016
	$ in thousands
Cost:
Intellectual property		67,650		67,350
Customer relations		97,483		97,483
Trade name		6,008		6,008
IPR&D		8,800
Other		143		143

		180,084		170,984

Less: accumulated amortization		111,858		86,774

		68,226		84,210

IPR&D was valued as part of the Pixcell step-up acquisition as further described in Note 2b. The IPR&D was valued using the income approach. The material net cash inflows are expected in 3 years. The key assumption in valuing the IPR&D related to the discount rate, which was 27.5%.

Amortization of other intangible assets totaled $25,484,000, $27,456,000 and $30,224,000 in the years ended December 31, 2017, 2016 and 2015, respectively.

Estimated amortization expense for the years stated below is as follows:


	$ in thousands
Year ending December 31:
2018		25,531
2019		18,657
2020		10,301
2021		3,718
2022		1,004
2023 and thereafter		215

		59,426

- 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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