Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

NOTE 6 - GOODWILL AND OTHER INTANGIBLE ASSETS:

Goodwill:

(i)

Composition

Composition of goodwill and changes therein the years ended December 31, 2015 and 2014 are as follows:

	December 31
	2015			2014
	$ in thousands
Balance at the beginning of year		179,445			12,444
Acquired during the year (see Note 3)		—			167,001
Disposed during the year following the Thermal Products Business based on relative fair value		(9,593	)
Purchase price adjustment		325
Balance at the end of the year		170,177			179,445

(ii)

Annual goodwill impairment test

As mentioned in Note 1m, the Company has designated September 30 of each year as the date on which it performs its annual goodwill impairment test.

In the years ended December 31, 2015 and 2014, the Company determined there was no impairment with respect to goodwill.

NOTE 6 – GOODWILL AND OTHER INTANGIBLE ASSETS (continued):

Other intangible assets

Other intangible assets are composed as follows:

	December 31
	2015		2014
	$ in thousands
Cost:
Intellectual property		126,190		120,780
Customer relations		96,824		100,831
Trade name		5,618		5,960
In-process research and development		—		6,920
Backlog		10,029		10,398
		238,661		244,889
Less:
Accumulated amortization		129,026		99,807
		109,635		145,082

Amortization of other intangible assets totaled $30,224,000, $19,235,000 and $4,041,000 in the years ended December 31, 2015, 2014 and 2013, respectively.

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

	$ in thousands:
Year ending December 31:
2016		26,993
2017		25,405
2018		25,093
2019		18,226
2020		9,880
2021 and thereafter		4,038
		109,635

- 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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