Intangible Assets and Goodwill

3 Months Ended

Jun. 30, 2011

Note 5. Intangible Assets and Goodwill

The carrying amount of goodwill at June 30, 2011 and March 31, 2011 was $39.8 million and $38.9 million, respectively, and has been recorded in connection with the Company’s acquisition of Impella Cardiosystems AG, or Impella. The goodwill activity for the three months ended June 30, 2011 is as follows:


	(in $000’s)
Balance at March 31, 2011		38,946
Exchange rate impact		806

Balance at June 30, 2011	$	39,752

The components of intangible assets are as follows:


	June 30, 2011						March 31, 2011
			Accumulated		Net Book				Accumulated		Net Book
	Cost		Amortization		Value		Cost		Amortization		Value
	(in $000’s)						(in $000’s)
Patents	$	7,239	$	6,379	$	860	$	7,099	$	6,005	$	1,094
Trademarks and tradenames		369		323		46		361		299		62
Distribution agreements		704		621		83		690		584		106
Acquired technology		2,433		2,143		290		2,384		2,014		370

	$	10,745	$	9,466	$	1,279	$	10,534	$	8,902	$	1,632

Amortization of intangible assets was $0.4 million for each of the three months ended June 30, 2011 and 2010. The Company’s expected amortization expense will be $1.0 million for the nine months ending March 31, 2012 and $0.3 million for fiscal 2013.

- 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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