XML 22 R8.htm IDEA: XBRL DOCUMENT v2.4.0.8
GOODWILL AND OTHER INTANGIBLE ASSETS
3 Months Ended
Mar. 31, 2014
GOODWILL AND OTHER INTANGIBLE ASSETS  
GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE C — 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.  There were no impairment indicators since our last annual impairment test on October 1, 2013.

 

Goodwill allocated to the Company’s operating segments for the three months ended March 31, 2014 and for the year ended 2013 are as follows:

 

(In thousands)

 

Patient Care

 

Products &
Services

 

Total

 

Balance at December 31, 2013

 

$

545,265

 

$

136,282

 

$

681,547

 

Additions due to acquisitions

 

17,130

 

3,778

 

20,908

 

Adjustments

 

 

 

 

Balance at March 31, 2014

 

$

562,395

 

$

140,060

 

$

702,455

 

 

 

 

Patient Care

 

Products &
Services

 

Total

 

Balance at December 31, 2012

 

$

538,492

 

$

136,282

 

$

674,774

 

Additions due to acquisitions

 

7,317

 

 

7,317

 

Adjustments

 

(544

)

 

(544

)

Balance at December 31, 2013

 

$

545,265

 

$

136,282

 

$

681,547

 

 

The balances related to intangible assets as of March 31, 2014 and December 31, 2013 are as follows:

 

 

 

March 31, 2014

 

December 31, 2013

 

(In thousands) 

 

Gross
Carrying
Amount

 

Accumulated
Amortization

 

Net
Carrying
Amount

 

Gross
Carrying
Amount

 

Accumulated
Amortization

 

Net
Carrying
Amount

 

Customer Lists

 

$

50,263

 

$

(12,715

)

$

37,548

 

$

46,932

 

$

(11,627

)

$

35,305

 

Trade Name

 

11,825

 

(380

)

11,445

 

10,023

 

(264

)

9,759

 

Patents and Other Intangibles

 

28,546

 

(16,172

)

12,374

 

28,441

 

(15,484

)

12,957

 

 

 

$

90,634

 

$

(29,267

)

$

61,367

 

$

85,396

 

$

(27,375

)

$

58,021

 

 

Customer lists are amortized over their estimated period of benefit, generally 10 to 14 years.  The majority of value associated to trade names is identified as an indefinite lived intangible asset, which is assessed for impairment on an annual basis as discussed in Note B.  Trade names not identified as an indefinite lived intangible asset are amortized over their estimated period of benefit of approximately 1 to 3 years. Patents are amortized using the straight-line method over 5 years.  Total intangible amortization expenses were $1.8 million and $1.7 million for the three months ended March 31, 2014 and March 31, 2013, respectively.  The weighted average life of the additions to customer lists, patents and other intangibles is 6 years.