Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill And Other Intangible Assets [Abstract]

11. Goodwill and Other Intangible Assets

Indefinite Lived Intangible Assets

As of December 31, 2017 and 2016 the carrying values of our indefinite lived intangible assets are as follows (in thousands):


	2017		2016
Goodwill	$	188,305	$	78,294
In-process R&D		13,954		--
Procurement contracts and agreements		2,013		2,013
Trademarks		841		841

Based on our experience with similar agreements, we believe that our acquired procurement contracts and agreements have indefinite useful lives, as we expect to continue to renew these contracts for the foreseeable future. We believe that our trademarks have indefinite useful lives as we currently anticipate that these trademarks will contribute to our cash flows indefinitely.

As of December 31, 2017 and 2016 the value of our goodwill, all of which is related to our Medical Devices segment, is as follows (in thousands):



	2017		2016
Balance as of January 1,	$	78,294	$	11,365
Goodwill from JOTEC acquisition		110,100		--
Goodwill from On-X acquisition		--		68,229
Goodwill allocated to sale of HeRO Graft product line		--		(1,200)
Goodwill allocated to sale of ProCol distribution rights and purchase option		--		(100)
Revaluation of goodwill denominated in foreign currency		(89)		--
Balance as of December 31,	$	188,305	$	78,294

Definite Lived Intangible Assets

As of December 31, 2017 and 2016 gross carrying values, accumulated amortization, and approximate amortization periods of our definite lived intangible assets are as follows (dollars in thousands):



	Gross Carrying		Accumulated		Amortization
December 31, 2017	Value		Amortization		Period
Acquired technology	$	139,045		8,685	11	–	22	Years
Patents		3,612		2,819			17	Years
Distribution and manufacturing rights and know-how		4,059		1,820	11	–	15	Years
Customer lists and relationships		32,419		3,552	13	–	23	Years
Other		1,439		1,076			3	Years

	Gross Carrying		Accumulated		Amortization
December 31, 2016	Value		Amortization		Period
Acquired technology	$	38,478		5,956	11	–	22	Years
Patents		3,710		2,702			17	Years
Distribution and manufacturing rights and know-how		4,059		1,532	11	–	15	Years
Customer lists and relationships		29,140		2,141	13	–	22	Years
Non-compete agreement		381		381			10	Years
Other		1,262		531			3	Years

The increase in gross carrying value of our intangible assets as of December 31, 2017 when compared to December 31, 2016 is primarily due to our acquisition JOTEC. See Note 4 for further discussion of the acquisition of JOTEC.

Amortization Expense

Amortization expense recorded in general, administrative, and marketing expenses on our Consolidated Statements of Operations and Comprehensive Income for the years ended December 31 is as follows (in thousands):



	2017		2016		2015
Amortization expense	$	5,085	$	4,426	$	2,135

As of December 31, 2017 scheduled amortization of intangible assets for the next five years is as follows (in thousands):



	2018		2019		2020		2021		2022		Total
Amortization expense	$	10,810	$	10,468	$	10,304	$	10,283	$	9,755	$	51,620

- 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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