Goodwill and Other Intangible Assets

The changes in the net carrying amount of goodwill for the three months ended March 31, 2015 are as follows:



Balance as of December 31, 2014	$	256,232

Reduction in goodwill resulting from a business acquisition purchase price allocation adjustment	(525		)

Foreign currency translation	41

Balance as of March 31, 2015	$	255,748

The purchase price was allocated based on information available at the acquisition date. During the quarter ended March 31, 2015, we recorded a measurement period adjustment, which reduced goodwill by $0.5 million. The amount was not considered material and therefore prior periods have not been revised.

Other intangible assets consist of the following:



	March 31, 2015					December 31, 2014
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:

Customer relationships	$	136,689	$	(60,896	)	$	136,126	$	(59,707	)

Promotional, marketing and distribution rights	149,376		(19,500		)	149,376		(18,000		)

Patents and other intangible assets	63,138		(41,553		)	63,464		(41,363		)

Unamortized intangible assets:

Trademarks and tradenames	86,544		—			86,544		—

	$	435,747	$	(121,949	)	$	435,510	$	(119,070	)

Customer relationships, trademarks and tradenames and patents and other intangible assets primarily represent allocations of purchase price to identifiable intangible assets of acquired businesses. Promotional, marketing and distribution rights represent intangible assets created under our Sports Medicine Joint Development and Distribution Agreement (the "JDDA") with Musculoskeletal Transplant Foundation (“MTF”).

On January 3, 2012, the Company entered into the JDDA with MTF to obtain MTF's worldwide promotion rights with respect to allograft tissues within the field of sports medicine and related products. 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 for tissue. On January 5, 2015 and January 3, 2014, we paid equal installments of $16.7 million and on January 3, 2013, we paid $34.0 million of the additional consideration. The remaining $16.7 million of the additional consideration is due in January 2016 and is accrued in other current liabilities as we believe it is probable MTF will meet the supply targets.

On July 30, 2014, the Company purchased the stock of EndoDynamix, Inc., a developer of minimally invasive surgical instruments. The purchase price included $13.9 million in contingent consideration based upon certain milestones being achieved totaling $10.3 million and future royalties to be incurred of $3.6 million. Contingent consideration was valued using a discounted cash flow method. We paid $3.7 million of the milestone payment on October 17, 2014 and another $2.4 million payment on April 13, 2015. We expect the remaining milestones to be achieved and paid by the end of 2015. We expect the royalty payments to be made between 2015 and 2020. The remaining contingent consideration totaled $10.2 million as of March 31, 2015.

Amortization expense related to intangible assets which are subject to amortization totaled $3.2 million and $3.3 million in the three months ended March 31, 2015 and 2014, respectively, and is included as a reduction of revenue (for amortization related to our promotional, marketing and distribution rights) and in selling and administrative expense (for all other intangible assets) in the consolidated condensed statements of comprehensive income (loss). The weighted average amortization period for intangible assets which are amortized is 27 years. Customer relationships are being amortized over a weighted average life of 33 years. Promotional, marketing and distribution rights are being amortized over a weighted average life of 25 years. Patents and other intangible assets are being amortized over a weighted average life of 14 years. Included in patents and other intangible assets at March 31, 2015 is an in-process research and development asset related to the EndoDynamix, Inc. acquisition that is not currently amortized.

The estimated intangible asset amortization expense for the year ending December 31, 2015, including the three month period ended March 31, 2015 and for each of the five succeeding years is as follows:



	Amortization included in expense		Amortization recorded as a reduction of revenue	Total
2015	$	6,657	6,000	$	12,657
2016	$	7,503	6,000	$	13,503
2017	$	7,485	6,000	$	13,485
2018	$	7,430	6,000	$	13,430
2019	$	7,430	6,000	$	13,430
2020	$	7,458	6,000	$	13,458