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GOODWILL AND INTANGIBLE ASSETS
6 Months Ended
Jun. 30, 2014
Notes to Financial Statements [Abstract]  
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS

The Company performed the required annual impairment tests of goodwill as of April 30, 2014 on 15 reporting units. As discussed in Note 6, Segment Information, effective in the first quarter of 2014, the Company realigned reporting responsibilities for multiple locations.  For any realignment that resulted in reporting unit changes, the Company applied the relative fair value method to determine the reallocation of goodwill of the associated reporting units.  

To determine the fair value of the Company’s reporting units, the Company uses a discounted cash flow model with market-based support as its valuation technique to measure the fair value for its reporting units. The discounted cash flow model uses five-year forecasted cash flows plus a terminal value based on a multiple of earnings. In addition, the Company applies gross margin and operating expense assumptions consistent with historical trends. The total cash flows were discounted based on a range between 8.6% to 14.0%, which included assumptions regarding the Company’s weighted-average cost of capital. The Company considered the current market conditions both in the U.S. and globally, when determining its assumptions. Lastly, the Company reconciled the aggregated fair values of its reporting units to its market capitalization, which included a reasonable control premium based on market conditions. As a result of the annual impairment tests of goodwill, no impairment was identified.

In addition, the Company assessed the annual impairment of indefinite-lived intangible assets as of April 30, 2014, which largely consists of acquired tradenames, in conjunction with the annual impairment tests of goodwill. The performance of the Company’s annual impairment test did not result in any impairment of the Company’s indefinite-lived assets.

A reconciliation of changes in the Company’s goodwill is as follows:
(in thousands)
Dental Consumable Businesses and Certain International Businesses
 
Dental Specialty and Laboratory Businesses and Certain Global Distribution Businesses
 
Healthcare and Emerging Markets Businesses
 
Total
 
 
 
 
 
 
 
 
Balance at December 31, 2013
$
325,044

 
$
1,576,126

 
$
380,426

 
$
2,281,596

Adjustments of provisional amounts on prior acquisitions

 
(240
)
 

 
(240
)
Effects of exchange rate changes
533

 
(12,696
)
 
9,605

 
(2,558
)
Balance at June 30, 2014
$
325,577

 
$
1,563,190

 
$
390,031

 
$
2,278,798















Identifiable definite-lived and indefinite-lived intangible assets consist of the following:
 
June 30, 2014
 
December 31, 2013
(in thousands) 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
 
 
 
 
 
 
 
 
 
 
 
Patents
$
181,716

 
$
(95,703
)
 
$
86,013

 
$
181,847

 
$
(91,736
)
 
$
90,111

Trademarks
84,739

 
(37,998
)
 
46,741

 
85,922

 
(35,994
)
 
49,928

Licensing agreements
32,130

 
(21,910
)
 
10,220

 
31,950

 
(20,992
)
 
10,958

Customer relationships
499,208

 
(98,815
)
 
400,393

 
497,108

 
(82,381
)
 
414,727

Total definite-lived
$
797,793

 
$
(254,426
)
 
$
543,367

 
$
796,827

 
$
(231,103
)
 
$
565,724

 
 
 
 
 
 
 
 
 
 
 
 
Indefinite-lived Trademarks and In-process R&D
$
221,738

 
$

 
$
221,738

 
$
229,599

 
$

 
$
229,599

 
 
 
 
 
 
 
 
 
 
 
 
Total identifiable intangible assets
$
1,019,531

 
$
(254,426
)
 
$
765,105

 
$
1,026,426

 
$
(231,103
)
 
$
795,323