Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets [Abstract]

NOTE 8. GOODWILL AND INTANGIBLE ASSETS, NET

Intangible assets other than goodwill consisted of the following (in thousands):


	December 31, 2013				December 31, 2012
		Cost		Accumulated Amortization		Cost		Accumulated Amortization
Patents	$	9,547	$	8,619	$	9,481	$	7,879
Product rights (1)		38,670		25,796		37,747		23,123
Customer-related intangible assets (2)		82,940		38,800		78,839		32,920
Noncompete agreements		7,131		6,229		6,508		5,820
	$	138,288	$	79,444	$	132,575	$	69,742

(1)

Product rights comprise certain technologies, licenses and trade names acquired from third parties.

(2)

Customer-related intangible assets comprise customer lists and customer relationships acquired from third parties.

Amortization expense of intangible assets other than goodwill was $9.7 million, $9.8 million and $8.7 million for the years ended December 31, 2013, 2012 and 2011, respectively. The decrease in intangible assets, net of accumulated amortization, during the year ended December 31, 2013 resulted from this continued amortization of our intangible assets and changes in foreign currency exchange rates. During the year ended December 31, 2013, we paid an aggregate of $10.8 million in cash to acquire all outstanding shares of a Brazilian distributor of certain of our bovine and dairy test products. We accounted for this acquisition as a business combination. See Note 3 for information regarding intangible assets other than goodwill recognized in connection with the acquisition of businesses and other assets during the years ended December 31, 2013, 2012 and 2011. The increase in goodwill during the year ended December 31, 2013 resulted from the business acquisition of our Brazilian distributor, partly offset by changes in foreign currency exchange rates.

At December 31, 2013, the aggregate amortization expense associated with intangible assets is estimated to be as follows for each of the next five years and thereafter (in thousands):


	Amortization Expense

2014	$	9,503
2015		9,289
2016		8,991
2017		7,984
2018		6,502
Thereafter		16,575
	$	58,844

The changes in the carrying amount of goodwill for the years ended December 31, 2013, 2012, and 2011 were as follows (in thousands):


		CAG		Water		LPD		Other		Consolidated Total
Balance as of December 31, 2010	$	118,131	$	13,648	$	10,802	$	6,531	$	149,112
Business Combinations		24,689		-		-		-		24,689
Impact of Changes in Foreign Currency Exchange Rates		(1,143)		(72)		24		-		(1,191)
Balance as of December 31, 2011	$	141,677	$	13,576	$	10,826	$	6,531	$	172,610
Impact of Changes in Foreign Currency Exchange Rates		1,478		603		303		-		2,384
Balance as of December 31, 2012	$	143,155	$	14,179	$	11,129	$	6,531	$	174,994
Business Combinations		250		-		6,491		-		6,741
Impact of Changes in Foreign Currency Exchange Rates		(1,997)		336		447		-		(1,214)
Balance as of December 31, 2013	$	141,408	$	14,515	$	18,067	$	6,531	$	180,521

See Note 3 for information regarding the recognition of goodwill in connection with the acquisition of businesses during the years ended December 31, 2013 and 2011. We have no history of impairment charges to the carrying value of our goodwill.

- 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.

+ References+ Details