Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The following table represents changes in the carrying amount of goodwill:



	Automation and Analytics		Medication Adherence		Total
	(In thousands)
Net balance as of December 31, 2016	$	215,082	$	112,642	$	327,724
Goodwill acquired	3,113		819		3,932
Foreign currency exchange rate fluctuations	2,351		773		3,124
Net balance as of September 30, 2017	$	220,546	$	114,234	$	334,780

Goodwill acquired in the Automation and Analytics segment represents the value assigned to goodwill as part of the InPharmics acquisition. Goodwill acquired in the Medication Adherence segment represents adjustments to the preliminary value assigned to goodwill in connection with Ateb acquisition to reflect measurement period adjustments related to accounts receivable and other non-current assets of $0.1 million and $0.7 million, respectively.

Intangible assets, net

The carrying amounts of intangibles assets as of September 30, 2017 and December 31, 2016 are as follows:



	September 30, 2017
	Gross carrying amount		Accumulated amortization			Foreign currency exchange rate fluctuations			Net carrying amount		Useful life (years)
	(In thousands, except for years)
Customer relationships	$	133,456	$	(30,421	)	$	297		$	103,332	1 - 30
Acquired technology	74,457		(19,493		)	75			55,039		3 - 20
Backlog	21,702		(16,654		)	—			5,048		1 - 5
Trade names	8,683		(4,508		)	13			4,188		1 - 12
Patents	3,290		(1,331		)	(6		)	1,953		2 - 20
Non-compete agreements	1,900		(1,133		)	—			767		3
In-process technology	3,900		—			—			3,900		—
Total intangibles assets, net	$	247,388	$	(73,540	)	$	379		$	174,227



	December 31, 2016
	Gross carrying amount		Accumulated amortization			Foreign currency exchange rate fluctuations			Net carrying amount		Useful life (years)
	(In thousands, except for years)
Customer relationships	$	133,358	$	(20,930	)	$	(596	)	$	111,832	1 - 30
Acquired technology	73,599		(13,287		)	(159		)	60,153		3 - 20
Backlog	20,550		(14,083		)	—			6,467		1 - 3
Trade names	8,667		(3,887		)	(31		)	4,749		1 - 12
Patents	3,154		(1,264		)	—			1,890		2 - 20
Non-compete agreements	1,900		(608		)	—			1,292		3
In-process technology	3,900		—			—			3,900		—
Total intangibles assets, net	$	245,128	$	(54,059	)	$	(786	)	$	190,283

Amortization expense of intangible assets was $6.4 million and $8.9 million for the three months ended September 30, 2017 and 2016, respectively. Amortization expense of intangible assets was $19.4 million and $27.2 million for the nine months ended September 30, 2017 and 2016, respectively.

The estimated future amortization expenses for amortizable intangible assets are as follows:



	September 30, 2017
	(In thousands)
Remaining three months of 2017	$	6,166
2018	23,302
2019	17,837
2020	16,631
2021	15,065
Thereafter (excluding in-process technology)	91,326
Total	$	170,327

- 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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