Goodwill and Other Intangible Assets

12 Months Ended

Apr. 29, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying value of goodwill for each of our reportable segments for the fiscal year ended April 29, 2017 are as follows:



	Balance at April 30, 2016		Other Activity			Balance at April 29, 2017
Dental	$	139,129	$	(840	)	$	138,289
Animal Health	677,463		(2,205		)	675,258
Corporate	—		—			—
Total	$	816,592	$	(3,045	)	$	813,547

Activity in fiscal 2017 primarily consists of the impact from foreign currency translation.

Balances of other intangible assets, excluding goodwill, are as follows:



	April 29, 2017						April 30, 2016
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Unamortized - indefinite lived:
Copyrights, trade names and trademarks	$	29,900	$	—	$	29,900	$	29,900	$	—	$	29,900
Amortized - definite lived:
Customer relationships	353,237		67,483		285,754		356,707		44,953		311,754
Trade names and trademarks	129,426		35,580		93,846		130,516		22,454		108,062
Developed technology and other	54,209		38,273		15,936		154,013		94,432		59,581
Total amortized intangible assets	536,872		141,336		395,536		641,236		161,839		479,397
Total identifiable intangible assets	$	566,772	$	141,336	$	425,436	$	671,136	$	161,839	$	509,297

In fiscal 2006, we extended our exclusive North American distribution relationship with Sirona Dental Systems for Sirona’s CEREC 3D dental restorative system. At that time, we paid a $100,000 distribution fee to extend the existing exclusive relationship for at least a 10-year beginning in 2007. This distribution fee has been accounted for as an intangible asset in our Dental segment that has been amortized since 2007.

Based on our November 2016 decision not to extend sales exclusivity for the full Sirona portfolio of products, we recorded a pre-tax non-cash impairment charge of $36,312 in our Dental segment in the third quarter fiscal 2017, related to the distribution fee associated with the CEREC product component of this arrangement. This charge was recorded within operating expenses in the consolidated statements of income and other comprehensive income.

With respect to the amortized intangible assets, future amortization expense is expected to approximate $38,811, $36,320, $35,022, $34,919 and $34,602 for fiscal years 2018, 2019, 2020, 2021 and 2022, respectively. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, changes in foreign currency exchange rates, impairment of intangible assets, accelerated amortization of intangible assets and other events.

- 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