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GOODWILL AND OTHER INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2012
GOODWILL AND OTHER INTANGIBLE ASSETS  
GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE D—GOODWILL AND OTHER INTANGIBLE ASSETS

        The Company completes its annual goodwill and indefinite lived intangible impairment analysis in the fourth quarter of each year. The Company determined that it has three reporting units to be evaluated, which are the same as its reportable segments: (i) Patient Care; (ii) Distribution; and (iii) Therapeutic Solutions. The Company completed its annual goodwill and indefinite lived intangible asset impairment in October 2012 and 2011 using a two-step approach, which did not result in an impairment as the fair value of the reporting units is substantially in excess of the carrying value of the underlying assets. The fair value of the Company's reporting units was primarily determined based on the income approach and considered the market and cost approach.

        The activity related to goodwill for the two years ended December 31, 2012 and 2011 is as follows:

(In thousands)
  Patient
Care
  Distribution   Therapeutic
Solutions
  Total  

Balance at December 31, 2010

  $ 456,232   $ 38,388   $ 96,079   $ 590,699  

Additions due to acquisitions

    17,192         851     18,043  

Contingent consideration(1)

    742             742  
                   

Balance at December 31, 2011

  $ 474,166   $ 38,388   $ 96,930   $ 609,484  

Additions due to acquisitions

    63,849         964     64,813  

Contingent consideration(1)

    477             477  
                   

Balance at December 31, 2012

  $ 538,492   $ 38,388   $ 97,894   $ 674,774  
                   

(1)
Contingent consideration relates to acquisitions completed prior to the adoption of ASC 805.

        The activity related to intangible assets for the two years ended December 31, 2012 and 2011 is as follows:

(In thousands)
  Customer
Lists
  Trade Name
ACP
  Patents and
Other
Intangibles
  Total  

Gross asset value

                         

As of December 31, 2010

  $ 32,447   $ 9,070   $ 25,262   $ 66,779  

Write-offs and other adjustments

            147     147  

Additions

    2,436         692     3,128  
                   

As of December 31, 2011

    34,883     9,070     26,101     70,054  

Additions(1)

    13,161         1,709     14,870  
                   

As of December 31, 2012

  $ 48,044   $ 9,070   $ 27,810   $ 84,924  

Accumulated Amortization

                         

As of December 31, 2010

  $ (1,942 ) $   $ (8,458 ) $ (10,400 )

Amortization expense

    (2,706 )       (2,054 )   (4,760 )
                   

As of December 31, 2011

    (4,648 )       (10,512 )   (15,160 )

Amortization expense

    (3,198 )       (2,285 )   (5,483 )
                   

As of December 31, 2012

    (7,846 )       (12,797 )   (20,643 )
                   

Net book value

  $ 40,198   $ 9,070   $ 15,013   $ 64,281  
                   

(1)
The weighted average life of the additions to customer lists, patents and other intangibles is 9.7 years.

        The $9.1 million ACP trade name has an indefinite life and is tested for recoverability in the annual impairment test. Estimated aggregate amortization expense for definite-lived intangible assets for each of the five years ending December 31 and thereafter is as follows:

(In thousands)
   
 

2013

  $ 6,778  

2014

    6,731  

2015

    6,676  

2016

    5,195  

2017

    4,720  

Thereafter

    25,111  
       

 

  $ 55,211