Goodwill and other intangible assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill, by reporting segment, for the twelve months ended December 31, 2014 and 2013 are as follows:



	Vascular North America			Anesthesia/Respiratory North America			Surgical North America		EMEA			Asia			All Other			Total
	(Dollars in thousands)
Balance as of December 31, 2013
Goodwill	$	459,696		$	167,195		$	250,506	$	373,417		$	136,946		$	298,571		$	1,686,331
Accumulated impairment losses	(219,527		)	(107,073		)	—		—			—			(5,528		)	(332,128		)
	240,169			60,122			250,506		373,417			136,946			293,043			1,354,203
Goodwill related to acquisitions	—			—			406					15,986			—			$	16,392
Translation adjustment	—			(681		)	—		(34,388		)	(8,220		)	(3,753		)	(47,042		)
Balance as of December 31, 2014
Goodwill	459,696			166,514			250,912		339,029			144,712			294,818			1,655,681
Accumulated impairment losses	(219,527		)	(107,073		)	—		—			—			(5,528		)	(332,128		)
	$	240,169		$	59,441		$	250,912	$	339,029		$	144,712		$	289,290		$	1,323,553



	Vascular North America			Anesthesia/Respiratory North America			Surgical North America		EMEA		Asia			All Other			Total
	(Dollars in thousands)
Balance as of December 31, 2012
Goodwill	$	407,090		$	167,942		$	245,794	$	353,282	$	139,469		$	257,003		1,570,580
Accumulated impairment losses	(219,527		)	(107,073		)	—		—		—			(5,528		)	(332,128		)
	187,563			60,869			245,794		353,282		139,469			251,475			1,238,452
Goodwill related to acquisitions	52,606			—			4,712		17,922		6,394			41,650			123,284
Translation adjustment	—			(747		)	—		2,213		(8,917		)	(82		)	(7,533		)
Balance as of December 31, 2013
Goodwill	459,696			167,195			250,506		373,417		136,946			298,571			1,686,331
Accumulated impairment losses	(219,527		)	(107,073		)	—		—		—			(5,528		)	(332,128		)
	$	240,169		$	60,122		$	250,506	$	373,417	$	136,946		$	293,043		$	1,354,203

Intangible assets at December 31, 2014 and 2013 consisted of the following:



	Gross Carrying Amount				Accumulated Amortization
	2014		2013		2014			2013
	(Dollars in thousands)
Customer lists	$	624,574	$	628,020	$	(192,876	)	$	(168,223	)
In-process research and development	68,694		68,786		—			—
Intellectual property	467,068		435,869		(146,131		)	(118,086		)
Distribution rights	16,101		16,797		(14,243		)	(14,592		)
Trade names	396,269		407,879		(2,764		)	(1,148		)
Noncompete agreements	337		337		(309		)	(42		)
	$	1,573,043	$	1,557,688	$	(356,323	)	$	(302,091	)

As of December 31, 2014, trade names of $359.3 million and all of the IPR&D are considered indefinite lived. Acquired in-process research and development is indefinite-lived until the completion of the associated efforts, at which point amortization of the carrying value of the technology will commence.

In May 2012, the Company acquired Semprus BioSciences, a biomedical research and development company that developed a polymer surface treatment technology intended to reduce thrombus related complications. As previously disclosed, the Company experienced difficulties with respect to the development of the Semprus technology and was devoting further research and testing towards attempting to resolve the issue. As a result of these efforts, the Company believes it has resolved the issue and is focused on seeking regulatory approval and engaging in additional research and development efforts to achieve commercialization of this technology. Despite this progress, significant challenges to commercialization of the Semprus technology remain, and the Company ultimately may find it necessary to recognize future impairment charges with respect to the related assets, which could be material. As of December 31, 2014, the Company has recorded IPR&D intangible assets of approximately $41.0 million related to this investment which are recorded in intangible assets, net.

Amortization expense related to intangible assets was $60.9 million, $50.6 million, and $44.3 million for the twelve months ended December 31, 2014, 2013 and 2012, respectively. Estimated annual amortization expense for each of the five succeeding years is as follows:



	(Dollars in thousands)
2015	$	55,750
2016	55,400
2017	54,950
2018	54,700
2019	54,500

- 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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