Goodwill and Other Acquisition-Related Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Acquisition-Related Intangibles

Goodwill and Other Acquisition-Related Intangible Assets

The Company performs its annual goodwill impairment test in the fourth quarter of each year, unless indicators warrant testing at an earlier date. During its annual impairment test in the fourth quarter of 2012, the price of the Company’s common stock adjusted for a control premium was above its book value and the Company concluded its goodwill was not impaired. In 2011 and 2010, no impairment of goodwill was recorded since the Company’s fair value substantially exceeded its carrying value. Information regarding the Company’s other acquisition-related intangible assets is as follows:



		December 31, 2012							December 31, 2011
	Useful Life (Years)	Gross		Accumulated Amortization			Net Book Value		Gross		Accumulated Amortization			Net Book Value
Goodwill		$	4,391	$	—		$	4,391	$	3,376	$	—		$	3,376
Amortizing intangible assets:
In-process research and development	3 - 5	1,779		(658		)	1,121		850		(270		)	580
Patents, trademarks, developed technology and other	4 - 15	55,743		(34,551		)	21,192		49,653		(28,430		)	21,223
		57,522		(35,209		)	22,313		50,503		(28,700		)	21,803
Non-amortizing intangible assets:
In-process research and development		850		—			850		929		—			929
Total intangible assets		58,372		(35,209		)	23,163		51,432		(28,700		)	22,732
Total goodwill and intangible assets		$	62,763	$	(35,209	)	$	27,554	$	54,808	$	(28,700	)	$	26,108

Amortization expense of intangible assets was approximately as follows:



	Year ended December 31,
	2012		2011		2010
Amortization expense	$	6,509	$	6,103	$	5,904

The changes in the gross carrying amount of goodwill and intangible assets are as follows:



	Goodwill and Intangible Assets
	Goodwill		In process research and development- non-amortizing			In process research and development- amortizing		Patents, trademarks, developed technology and other		Total
Balance as of December 31, 2010	$	3,376	$	1,365		$	600	$	48,053	$	53,394
Additions	—		—			250		1,600		1,850
Deductions	—		(436		)	—		—		(436		)
Balance as of December 31, 2011	$	3,376	$	929		$	850	$	49,653	$	54,808
Additions	1,015		850			929		6,090		8,884
Deductions	—		(929		)	—		—		(929		)
Balance as of December 31, 2012	$	4,391	$	850		$	1,779	$	55,743	$	62,763

The Company's patents, trademarks, developed technology and other intangible assets are being amortized over a period of three to fifteen years. During 2012 and 2011, certain product lines that were included in non-amortizing IPR&D reached technological feasibility. As a result, the Company transferred $929 and $250, respectively, to amortizing IPR&D and began amortizing the amounts over a period of three years.

During the third quarter of 2012, the Company acquired developed technology for $4,850 that will be amortized over a period of eleven years. The Company estimated the fair value of this asset using the relief from royalty valuation methodology discounted at a market discount rate.

During the fourth quarter of 2012, the Company completed acquisitions that resulted in the recognition of several intangible assets including developed technology for $570, non-amortizing IPR&D for $850, customer relationships for $670 and goodwill for $1,015. The developed technology and the customer relationships assets will be amortized over a period of five years. The Company estimated the fair value of the developed technology and IPR&D assets using a relief from royalty valuation methodology discounted at a market discount rate. The fair value of the customer relationships asset was estimated using a cash flow based approach discounted at a market discount rate.

In 2011, the Company incurred a charge of $186 to abandon and write off a product line included in IPR&D. No similar charges were recorded in 2012.

During 2011, the Company acquired patents for $1,600 which are being amortized over a period of eleven years. No patents were acquired during 2012.

Amortization expense related to intangible assets at December 31, 2012 in each of the next five fiscal years and beyond is expected to be as follows:




2013	$	6,483
2014	5,193
2015	3,225
2016	1,871
2017	1,716
Thereafter	3,825
	$	22,313

- 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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