Intangibles and Goodwill (Notes)

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

. Intangible Assets and Goodwill

Intangible Assets, Net

The components of intangible assets as of September 30, 2017 and December 31, 2016 were as follows:



	September 30, 2017							December 31, 2016
(in thousands)	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Finite-lived intangible assets:
Acquired products rights⁽¹⁾	$	216,690	$	(27,086	)	$	189,604	$	216,690	$	(10,834	)	$	205,856
Customer relationships^{(1) (2)}	26,080		(3,077		)	23,003		23,880		(1,194		)	22,686
Acquired technology⁽²⁾	9,200		(255		)	8,945		—		—			—
Acquired trademarks⁽²⁾	570		(48		)	522		—		—			—
	$	252,540	$	(30,466	)	$	222,074	$	240,570	$	(12,028	)	$	228,542

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(1) The Company acquired certain intangible assets as part of the Noden Transaction, as described further in Note 18. They are amortized on a straight-line basis over a weighted average period of 10.0 years.

(2) The Company acquired certain intangible assets as part of the LENSAR transaction, as described further in Note 18. They are amortized over a weighted average period of 15 years. The intangible assets for acquired technology and trademarks are being amortized over their estimated useful lives using the straight-line method of amortization. The intangible assets for customer relationships are being amortized using a double-declining method of amortization as such method better represents the economic benefits to be obtained.

Amortization expense for the nine months ended September 30, 2017 was $18.4 million.

Based on the intangible assets recorded at September 30, 2017, and assuming no subsequent additions to or impairment of the underlying assets, the remaining estimated amortization expense is expected to be as follows (in thousands):



Fiscal Year	Amount
2017 (Remaining three months)	$	6,251
2018	24,989
2019	24,969
2020	24,950
2021	24,934
2022	24,843
Thereafter	91,138
Total intangible assets acquired	$	222,074

- 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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