Goodwill And Other Intangible Assets

9 Months Ended

Sep. 30, 2012

Goodwill And Other Intangible Assets [Abstract]

10. Goodwill and Other Intangible Assets

The Company’s intangible assets consist of goodwill, patents, trademarks, and other intangible assets, as discussed further below. These assets include assets acquired from Hemosphere, as discussed in Note 4 above, assets acquired from Cardiogenesis, as discussed in Note 6 above, and PerClot assets acquired from SMI as discussed in Note 7 above.

Indefinite Lived Intangible Assets

The carrying values of the Company’s indefinite lived intangible assets are as follows (in thousands):


	September 30,		December 31,
	2012		2011
Goodwill	$	11,300	$	4,220
Procurement contracts and agreements		2,013		2,013
Trademarks		858		847
Other		250		250

Based on its experience with similar agreements, the Company believes that its acquired contracts and procurement agreements have an indefinite useful life, as the Company expects to continue to renew these contracts for the foreseeable future. Accordingly, the Company’s indefinite lived intangible assets do not amortize, but are instead subject to periodic impairment testing.

A roll-forward of the Company’s goodwill balances by reportable segment for the nine months ended September 30, 2012 is as follows (in thousands):


	Medical Devices Segment
Balance as of December 31, 2011	$	4,220
Goodwill from Hemosphere acquisition		7,080
Balance as of September 30, 2012	$	11,300

Definite Lived Intangible Assets

The Company generally amortizes its definite lived intangible assets over their expected useful lives using the straight-line method. The gross carrying values, accumulated amortization, and approximate amortization periods of the Company’s definite lived intangible assets are as follows (in thousands):


	Gross Carrying		Accumulated		Amortization
September 30, 2012	Value		Amortization		Period
Acquired technology	$	14,020	$	1,254	11-16	Years
Patents		4,621		2,455	17	Years
Distribution and manufacturing rights and know-how		3,559		413	15	Years
Customer lists and relationships		3,370		270	13-17	Years
Non-compete agreement		381		219	10	Years
Other		199		105	1-3	Years

	Gross Carrying		Accumulated		Amortization
December 31, 2011	Value		Amortization		Period
Acquired technology	$	9,230	$	524	11	Years
Patents		5,610		2,871	17	Years
Distribution and manufacturing rights and know-how		3,559		231	15	Years
Customer lists and relationships		2,370		114	13	Years
Non-compete agreement		381		191	10	Years
Other		114		48	2-3	Years

Amortization Expense

The following is a summary of amortization expense as recorded in general, administrative, and marketing expenses on the Company’s Summary Consolidated Statement of Operations and Comprehensive Income (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
Amortization expense	$	521	$	436	$	1,454	$	917

As of September 30, 2012 scheduled amortization of intangible assets for the next five years is as follows (in thousands):


	Remainder
	of 2012		2013		2014		2015		2016		2017
Amortization expense	$	518	$	2,014	$	1,961	$	1,915	$	1,906	$	1,857

- 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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