Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2016

Goodwill And Other Intangible Assets Disclosure [Abstract]

Goodwill And Other Intangible Assets Disclosure [Text Block]

5. Goodwill and Other Intangible Assets

Intangible assets consist of the following:

									Weighted
									Average
		September 30, 2016				December 31, 2015			Life	(a)
		(in thousands)
Amortizable intangible assets:		Gross		Accumulated Amortization		Gross		Accumulated Amortization
Existing technology	$	15,687	$	(11,962)	$	16,022	$	(11,686)	7.1	Years
Trade names		7,623		(3,440)		7,636		(3,076)	8.2	Years
Distribution agreements/customer relationships		23,653		(12,800)		23,676		(11,849)	9.1	Years
Patents		216		(116)		245		(96)	2.4	Years
Total amortizable intangible assets		47,179	$	(28,318)		47,579	$	(26,707)

Indefinite-lived intangible assets:
Goodwill		39,624				40,357
Other indefinite-lived intangible assets		1,227				1,223
Total goodwill and other indefinite-lived intangible assets		40,851				41,580

Total intangible assets, gross	$	88,030			$	89,159

(a) Weighted average life as of September 30, 2016.

The change in the carrying amount of goodwill for the nine months ended September 30, 2016 is as follows:

Impairment of intangible assets

During the third quarter of 2016, the Company initiated plans to sell the operations of its AHN Biotechnologie GmbH subsidiary (“AHN”), a manufacturer of liquid handling products, located in Nordhausen, Germany. The Company assessed the held for sale accounting guidance, pursuant to ASC 360-10, and concluded that it had not met all the criteria for AHN’s assets and liabilities to be classified as held for sale as of September 30, 2016. As such, AHN’s assets and liabilities continue to be presented as held and used, and the results of its operations included within continuing operations as of, and for the three and nine months ended September 30, 2016, respectively.

As a result of the Company initiating plans to sell the operations of AHN, the Company evaluated the long-lived assets for impairment, pursuant to ASC 360-10. Based on the impairment analysis, the carrying amount of the long-lived assets exceeded the fair value of the long-lived assets as determined using the probability weighted present value of future cash flows. As a result, the Company recognized an impairment charge of $0.7 million for the three and nine months ended September 30, 2016 as part of operating expenses within its statements of operations. Of the overall charge, approximately $0.1 million was allocated to its intangible assets (trade name and customer relationships), while the remainder of the charge was allocated to its property, plant and equipment (machinery and equipment).

As also noted in footnote 18, on October 26, 2016, the Company sold AHN for $1.7 million in cash proceeds.

Amortization of intangible assets

Intangible asset amortization expense was $0.7 million for both the three months ended September 30, 2016 and 2015. Intangible asset amortization expense was $2.1 million for both the nine months ended September 30, 2016 and 2015. Amortization expense of existing amortizable intangible assets is currently estimated to be $2.6 million for the year ending December 31, 2016, $2.5 million for the year ending December 31, 2017, $2.3 million for the year ending December 31, 2018, $2.2 million for the year ending December 31, 2019 and $2.1 million for the year ending December 31, 2020.

- 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

(in thousands)

Balance at December 31, 2015

Adjustment to purchase price allocation of prior year acquisition

Effect of change in currency translation

Balance at September 30, 2016