Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill And Other Intangible Assets [Abstract]

NOTE 3 – GOODWILL AND OTHER INTANGIBLE ASSETS

The changes in the carrying amount of goodwill for each of the Company's reportable segments for the fiscal years ended December 31, 2011 and January 1, 2011 were as follows (in thousands):


	CRM/NMD		CV/AF			Total
Balance at January 2, 2010	$	1,218,329	$	787,522		$	2,005,851
AGA Medical		—		880,679			880,679
LightLab Imaging		—		40,543			40,543
Foreign currency translation and other		12,791		15,738			28,529
Balance at January 1, 2011	$	1,231,120	$	1,724,482		$	2,955,602
AGA Medical		—		(2,995	)		(2,995	)
Foreign currency translation and other		3,965		(3,635	)		330
Balance at December 31, 2011	$	1,235,085	$	1,717,852		$	2,952,937

The following table provides the gross carrying amount of other intangible assets and related accumulated amortization (in thousands):


	December 31, 2011				January 1, 2011
	Gross carrying amount		Accumulated amortization		Gross carrying amount		Accumulated amortization

Definite-lived intangible assets:
Purchased technology and patents	$	922,409	$	275,831	$	910,035	$	208,362
Customer lists and relationships		47,745		25,433		184,327		100,608
Trademarks and tradenames		24,171		7,556		24,370		7,431
Licenses, distribution agreements and other		6,283		4,575		6,170		4,511
	$	1,000,608	$	313,395	$	1,124,902	$	320,912

Indefinite-lived intangible assets:
Acquired IPR&D	$	120,000			$	134,270
Trademarks and tradenames		48,800				48,800
	$	168,800			$	183,070

During 2011, the Company received approval in Japan for its OCT technology acquired in conjunction with its LightLab Imaging acquisition in 2010. As a result of the approval, the Company reclassified $14.3 million of acquired IPR&D from an indefinite-lived intangible asset to a purchased technology definite-lived intangible asset.

The Company also recognized a $51.9 million impairment charge during 2011 primarily associated with customer relationship intangible assets (see Note 8). The gross carrying amounts and related accumulated amortization amounts for these impairment charges were written off in the respective period. There was no impairment of intangible assets during fiscal years 2010 or 2009.

Amortization expense was $93.1 million, $63.3 million and $58.5 million for fiscal years 2011, 2010 and 2009, respectively. The following table presents expected future amortization expense. Actual amounts of amortization expense may differ due to additional intangible assets acquired and foreign currency translation impacts (in thousands):


	2012		2013		2014		2015		2016		After 2016
Amortization expense		$ 81,361		$ 80,351		$ 79,281		$ 78,939		$ 78,750		$ 326,504

- 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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