Goodwill, Other Intangible Assets, and Other Assets

The changes in the net carrying amount of goodwill for the six months ended June 30, 2013 are as follows:



Balance as of December 31, 2012, as reported	$	256,821

Reduction in goodwill resulting from a business acquisition purchase price allocation adjustment	(7,661		)

Balance as of December 31, 2012, as revised, and June 30, 2013	$	249,160

During the first quarter of 2013, we finalized the allocation of purchase price related to our acquisition of Viking Systems, Inc.. We recorded a deferred tax asset of $7.7 million relating to the acquired net operating losses, which resulted in a corresponding reduction to goodwill. There have been no other changes in the consideration paid, working capital, or other acquired assets and liabilities, other than those described above, since December 31, 2012.

Other intangible assets consist of the following:



	December 31, 2012					June 30, 2013
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:

Customer relationships	$	135,690	$	(50,083	)	$	135,690	$	(52,644	)

Patents and other intangible assets	54,412		(37,554		)	54,435		(39,002		)

Unamortized intangible assets:

Trademarks and tradenames	88,344		—			88,344		—

	$	278,446	$	(87,637	)	$	278,469	$	(91,646	)

Other intangible assets primarily represent allocations of purchase price to identifiable intangible assets of acquired businesses. The weighted average amortization period for intangible assets which are amortized is 29 years. Customer relationships are being amortized over a weighted average life of 33 years. Patents and other intangible assets are being amortized over a weighted average life of 14 years.

Amortization expense related to intangible assets which are subject to amortization totaled $1,930 and $3,862 in the three and six months ended June 30, 2012 and $2,021 and $4,009 in the three and six months ended June 30, 2013, respectively, and is included in selling and administrative expense on the consolidated condensed statements of income.

The estimated intangible asset amortization expense for the year ending December 31, 2013, including the six month period ended June 30, 2013 and for each of the five succeeding years is as follows:



2013	$	7,866
2014	7,240
2015	6,860
2016	6,751
2017	6,737
2018	6,682

On January 3, 2012, the Company entered into a Sports Medicine Joint Development and Distribution Agreement (the "JDDA") with Musculoskeletal Transplant Foundation (“MTF”) to obtain (i) MTF's worldwide promotion rights with respect to allograft tissues within the field of sports medicine, and (ii) an exclusive license to an autograft (patient's own) blood Platelet-Rich Plasma (“PRP”) therapy technology and products (collectively, the “Transaction”). The initial consideration from the Company included a $63.0 million up-front payment for the rights and certain assets, with an additional $84.0 million contingently payable over a four year period depending on MTF meeting supply targets. On January 3, 2013, we paid $34.0 million of the additional consideration; $16.7 million of the additional consideration is due within the next fiscal year with the remainder due in equal installments in each year thereafter. The $50.0 million related to the contingent payment is accrued in other current and other long term liabilities as we believe it is probable MTF will meet the supply targets. At June 30, 2013, the gross carrying amount of the assets acquired amounted to $149.4 million and the related accumulated amortization was $9.0 million. This has been recorded in other assets and is being amortized on a straight line basis over the expected useful life of 25 years. Amortization expense is recorded as a reduction to sales.