Goodwill and Other Intangible Assets

9 Months Ended

Sep. 28, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Note 6 - Goodwill and Other Intangible Assets

Intangible assets are as follows (in thousands):


	As of September 28, 2013
	Gross Amount		Accumulated Amortization			Net Amount
Current technology	$	18,978	$	(13,643	)	$	5,335
Patent and patent rights		29,569		(17,113	)		12,456
Customer relationships		20,493		(4,690	)		15,803

Other intangibles, net	$	69,040	$	(35,446	)	$	33,594

Amortization expense for the nine months ended September 28, 2013			$	5,557


	As of December 31, 2012
	Gross Amount		Accumulated Amortization			Net Amount
Current technology	$	18,978	$	(12,391	)	$	6,587
Patent and patent rights		29,569		(14,618	)		14,951
Customer relationships		20,493		(2,880	)		17,613

Other intangibles, net	$	69,040	$	(29,889	)	$	39,151

Amortization expense for the nine months ended September 29, 2012			$	3,210

Zebra has $94,942,000 of goodwill recorded as of September 28, 2013 and December 31, 2012.

We test goodwill for impairment on an annual basis or more frequently if we believe indicators of impairment exist. We perform our assessment in accordance with Accounting Standards update (ASU) 2011-08, which allows for the option to make a qualitative evaluation about the likelihood of goodwill impairment to determine whether the fair value needs to be reassessed. Zebra has two reporting units for its annual goodwill impairment test, however only one includes a goodwill balance. Based on an analysis of various qualitative and quantitative factors, we determined that it was not more likely that the fair value of the reporting unit was less than its carrying value, including goodwill. We performed our qualitative assessment in June 2013 and determined that our goodwill was not impaired as of the end of May 2013.

In the third quarter 2012, due to the deterioration in the smaller reporting unit’s operating results, our fair value calculation for the smaller reporting unit changed and we determined our goodwill associated with the smaller reporting unit to be impaired. As a result, Zebra performed a second step analysis and recorded a goodwill impairment charge of $9,114,000 as of September 29, 2012. After this impairment charge, there was no remaining goodwill in the smaller reporting unit.

In the third quarter 2012, Zebra acquired all of the outstanding membership interests in Laserband LLC (a Missouri limited liability company) with $24,353,000 of the purchase price allocated to goodwill.

Changes in the net carrying value amount of goodwill were as follows (in thousands):


	As of
	September 28, 2013		December 31, 2012
Balance at the beginning of the year	$	94,942	$	79,703
Acquisition – LaserBand		0		24,353
Impairment charges		0		(9,114	)

Balance at the end of the period	$	94,942	$	94,942

The balance of goodwill as of January 1, 2012 of $79,703,000 is recorded net of impairment charges of $101,028,000 which were recognized in 2008.

- 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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