Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying amount of goodwill are as follows:



	Automation and Analytics		Medication Adherence			Total
	(In thousands)
Net balance as of December 31, 2012	$	28,543	$	82,864		$	111,407
Additions	—		—			—
Adjustments ⁽¹⁾	—		(64		)	(64		)
Net balance as of December 31, 2013	$	28,543	$	82,800		$	111,343
Additions ⁽²⁾	—		12,112			12,112
Adjustments ⁽³⁾	—		(735		)	(735		)
Net balance as of December 31, 2014	$	28,543	$	94,177		$	122,720

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⁽¹⁾	Goodwill includes an immaterial adjustment related to the MTS acquisition in May 2012.


⁽²⁾	Additions to goodwill as a result of the Surgichem acquisition in August 2014, including a $0.1 million adjustment to the purchase price in the fourth quarter of 2014.


⁽³⁾	Adjustments reflect foreign currency exchange rate fluctuations.

Effective in the first quarter of 2014, we modified our segment reporting structure to match our new operating structure. Our reporting units for goodwill are the same as our reportable operating segments. See Note 17, Segment Information, for information regarding the changes related to segment information.

Intangible assets, net



	December 31, 2014								December 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Useful Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Useful Life (Years)
	(In thousands, except for years)
Customer relationships	$	60,150	$	(7,919	)	$	52,231	5 - 30	$	54,730	$	(5,236	)	$	49,494	5 - 30
Acquired technology	27,580		(4,068		)	23,512		3 - 20	27,580		(2,598		)	24,982		3 - 20
Trade names	7,110		(1,576		)	5,534		1 - 12	6,890		(1,003		)	5,887		3 - 12
Patents	1,655		(265		)	1,390		20	1,493		(254		)	1,239		20
Non-compete agreements	—		—			—		—	60		(60		)	—		3
Total intangibles assets, net	$	96,495	$	(13,828	)	$	82,667		$	90,753	$	(9,151	)	$	81,602

We capitalized third-party costs associated with internally-developed patents of $0.3 million, $0.4 million and $0.4 million as of December 31, 2014, December 31, 2013 and December 31, 2012, respectively.

Amortization expense of intangible assets was $4.6 million, $4.3 million and $2.9 million for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively.

Total future amortization expense for intangible assets is as follows:



	December 31, 2014
	(In thousands)
2015	$	4,679
2016	4,354
2017	4,267
2018	4,113
2019	4,063
Thereafter	61,191
Total	$	82,667

- 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.

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