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GOODWILL AND OTHER INTANGIBLE ASSETS
3 Months Ended
Mar. 31, 2013
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 has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step quantitative goodwill impairment test.  If the Company determines that a two-step goodwill impairment test is necessary or more efficient than a qualitative approach, it will measure the fair value of the Company’s reporting units using a combination of income, market and cost approaches. In conjunction with the Company’s evaluation of operating segments disclosed in Note L, the Company assessed its reporting unit structure and determined no changes were necessary.  As such, the Company concluded there was not a triggering event to re-evaluate whether a potential impairment of goodwill had occurred.  No triggering events have transpired since December 31, 2012.

 

Goodwill allocated to the Company’s operating segments for the three months ended March 31, 2013 and 2012 is as follows:

 

(In thousands)

 

Patient Care

 

Products &
Services

 

Total

 

Balance at December 31, 2012

 

$

538,492

 

$

136,282

 

$

674,774

 

Additions due to acquisitions

 

 

 

 

Contingent considerations (1)

 

 

 

 

Adjustments

 

(358

)

 

(358

)

Balance at March 31, 2013 (unaudited)

 

$

538,134

 

$

136,282

 

$

674,416

 

 

 

 

Patient Care

 

Products &
Services

 

Total

 

Balance at December 31, 2011

 

$

474,166

 

$

135,318

 

$

609,484

 

Additions due to acquisitions

 

1,372

 

 

1,372

 

Contingent considerations (1)

 

127

 

 

127

 

Adjustments

 

163

 

 

163

 

Balance at March 31, 2012 (unaudited)

 

$

475,828

 

$

135,318

 

$

611,146

 

 

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

 

The balances related to intangible assets for the three months ended March 31, 2013 and 2012 is as follows:

 

 

 

31-Mar-13

 

31-Dec-12

 

 

 

Gross

 

 

 

Net

 

Gross

 

 

 

Net

 

 

 

Carrying

 

Accumulated

 

Carrying

 

Carrying

 

Accumulated

 

Carrying

 

(In thousands)

 

Amount

 

Amortization

 

Amount

 

Amount

 

Amortization

 

Amount

 

Customer Lists

 

$

48,044

 

$

(8,872

)

$

39,172

 

$

48,044

 

$

(7,846

)

$

40,198

 

Trade Name

 

9,070

 

 

9,070

 

9,070

 

 

9,070

 

Patents and Other Intangibles

 

27,859

 

(13,440

)

14,419

 

27,810

 

(12,797

)

15,013

 

 

 

84,973

 

(22,312

)

62,661

 

84,924

 

(20,643

)

64,281

 

 

Customer lists are amortized over their estimated period of benefit, generally 10 to 14 years.  Patents are amortized using the straight-line method over 5 years.  Total intangible amortization expenses were $1.7 million and $2.8 million for the three months ended March 31, 2013 and March 31, 2012, respectively.