Stratasys Ltd. Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments

Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Note 3. Goodwill and Other Intangible Assets

Goodwill

Changes in the carrying amount of the Companys goodwill for the three months ended March 31, 2016, were as follows:

	(U.S. $ in millions)
Goodwill as of January 1, 2016	$	383.9
Translation differences		2.7
Goodwill as of March 31, 2016	$	386.6

Other Intangible Assets

Other intangible assets consisted of the following:

	March 31, 2016										December 31, 2015
	Gross					Accumulated			Net		Gross					Accumulated			Net
	Carrying		Accumulated			Impairment			Book		Carrying		Accumulated			Impairment			Book
	Amount		Amortization			Loss			Value		Amount		Amortization			Loss			Value
	U.S. $ in thousands
Developed technology	$	509,673	$	(168,124	)	$	(203,170	)	$	138,379	$	509,827	$	(157,862	)	$	(203,170	)	$	148,795
Patents		18,232		(10,454	)		-			7,778		17,785		(10,008	)		-			7,777
Trademarks and trade names		60,182		(15,044	)		(27,698	)		17,440		60,141		(14,463	)		(27,698	)		17,980
Customer relationships		150,915		(44,961	)		(34,720	)		71,234		150,677		(41,708	)		(34,720	)		74,249
Non-compete agreements		10,843		(5,874	)		(4,969	)		-		10,843		(5,874	)		(4,969	)		-
Capitalized software development costs		21,555		(17,584	)		(1,379	)		2,592		21,389		(17,351	)		(1,379	)		2,659
In process research and development		22,179		-			(21,171	)		1,008		22,179		-			(21,171	)		1,008
	$	793,579	$	(262,041	)	$	(293,107	)	$	238,431	$	792,841	$	(247,266	)	$	(293,107	)	$	252,468

Amortization expense relating to intangible assets for the three-month periods ended March 31, 2016 and 2015 was approximately $14.7 million and $22.0 million, respectively.

As of March 31, 2016, estimated amortization expense relating to intangible assets currently subject to amortization for each of the following periods were as follows:

	Estimated
	amortization expense
	(U.S. $ in thousands)
Remaining nine months of 2016	$	43,698
2017		57,924
2018		55,707
2019		42,050
2020		15,057
Thereafter		22,987
Total	$	237,423

- 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.

+ References + Details