Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2018

Note 9—Goodwill and Intangible Assets

Goodwill

The following table sets forth the changes in the carrying amount of goodwill for the years ended December 31, 2018, 2017 and 2016 (in millions):


Balance at December 31, 2015	$	130.6
Current period additions/adjustments		1.0
Foreign currency impact		(1.0)
Balance at December 31, 2016		130.6
Current period additions/adjustments		33.8
Foreign currency impact		5.4
Balance at December 31, 2017		169.8
Current period additions/adjustments		109.0
Foreign currency impact		(3.1)
Balance at December 31, 2018	$	275.7

At December 31, 2018, 2017 and 2016, all goodwill was allocated within the BSI Segment. The Company performed its annual impairment evaluation using a quantitative approach at December 31, 2018 and a qualitative approach at December 31, 2017 and 2016 and concluded it was more likely than not that goodwill has not been impaired. Based on the most recent quantitative analysis the fair values of each of the Company’s reporting units was significantly greater than their carrying amounts and, therefore, no impairment was required.

Intangible Assets

The following is a summary of intangible assets at December 31, (in millions):


	2018						2017
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Existing technology and related patents	$	272.6	$	(160.5)	$	112.1	$	195.4	$	(138.9)	$	56.5
Customer relationships		112.0		(18.1)		93.9		34.6		(12.9)		21.7
Non compete conracts		1.8		(1.8)		—		1.8		(1.5)		0.3
Trade names		11.6		(1.6)		10.0		4.2		(0.9)		3.3
Other		5.1		(2.4)		2.7		—		—		—
Intangible assets subject to amortization		403.1		(184.4)		218.7		236.0		(154.2)		81.8
In-process research and development		—		—		—		0.6		—		0.6
Intangible assets	$	403.1	$	(184.4)	$	218.7	$	236.6	$	(154.2)	$	82.4

For the years ended December 31, 2018, 2017 and 2016, the Company recorded amortization expense of approximately $28.9 million, $29.6 million and $21.7 million, respectively, in the consolidated statements of income and comprehensive income. During the year ended December 31, 2018, the Company recorded an impairment charge of $0.6 million representing the impairment of the in-process research and development within the Bruker CALID Group.

The estimated future amortization expense related to amortizable intangible assets at December 31, 2018 is as follows (in millions):


2019	$	34.9
2020		29.7
2021		27.7
2022		21.8
2023		19.1
Thereafter		85.5
Total	$	218.7

- 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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