Goodwill and Intangible Assets (Notes)

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Intangible Assets, Net

Goodwill

The following table presents the changes in the carrying amount of our goodwill for 2017 (in thousands):



	Total
Balance as of December 31, 2016	$	5,577
Goodwill acquired	1,015
Currency translation	95
Balance as of September 30, 2017	$	6,687

The acquired goodwill relates to our February 1, 2017 acquisition of Fannin (see Note 3: Acquisition, Strategic Transaction and Integration Expenses).

Intangible Assets, Net

Intangible assets, carried at cost less accumulated amortization and amortized on a straight-lined basis, were as follows (in thousands):



	Weighted Average	September 30, 2017
	Amortization Life in Years	Cost		Accumulated Amortization		Net
Patents	10	$	16,603	$	10,699	$	5,904
Customer contracts	10	11,406		4,797		6,609
Non-contractual customer relationships	9	55,080		4,944		50,136
Trademarks	4	425		425		—
Trade name	15	7,310		975		6,335
Developed technology	11	81,801		5,654		76,147
Total definite-lived intangible assets		$	172,625	$	27,494	$	145,131

Indefinite-lived IPR&D		7,207		—		7,207

Total intangible assets		$	179,832	$	27,494	$	152,338



	Weighted Average	December 31, 2016
	Amortization Life in Years	Cost		Accumulated Amortization		Net
Patents	10	$	14,423	$	9,326	$	5,097
MCDA contract *	10	8,571		8,571		—
Customer contracts	9	5,319		4,512		807
Non-contractual customer relationships	15	7,080		590		6,490
Trademarks	4	425		425		—
Trade name	15	7,310		609		6,701
Developed technology	10	3,797		509		3,288
Total		$	46,925	$	24,542	$	22,383

*MCDA contract: Manufacturing, Commercialization and Development Agreement with Hospira, Inc., dated May 1, 2005 (the "MCDA”). The MCDA was terminated in connection with the acquisition of the HIS business on February 3, 2017.

Intangible assets with definite lives are amortized on a straight-line basis over their estimated useful lives. During the three and nine months ended September 30, 2017, intangible asset amortization expense was $3.6 million and $10.9 million, respectively, as compared to $0.7 million and $2.1 million during the three and nine months ended September 30, 2016, respectively.

As of September 30, 2017 estimated annual amortization for our intangible assets for each of the next five years is approximately (in thousands):



Remainder of 2017	$	4,218
2018	16,353
2019	15,938
2020	15,798
2021	15,716
Thereafter	77,108
Total	$	145,131

- 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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