Stratasys Ltd. Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets

Note 7. Goodwill and Other Intangible Assets

Goodwill

Changes in goodwill for the years ended December 31, 2013 and 2012 are as follows (in millions):

Goodwill at January 1, 2012	$	25.4
Goodwill acquired		797.1
Goodwill at December 31, 2012		822.5
Goodwill acquired		372.0
Translation differences		1.4
Goodwill at December 31, 2013	$	1,195.9

Other Intangible Assets

Other intangible assets consisted of the following at December 31 (in thousands):

	2013				2012
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
Developed technology	$	447,842	$	54,029	$	385,735	$	9,058
Patents		14,065		6,523		13,533		4,952
Trademarks and trade names		59,019		3,817		16,877		592
Customer relationships		100,679		10,793		77,779		1,172
Non-compete agreement		10,354		1,249		350		194
Capitalized software development costs		16,612		13,828		15,831		12,996
IPR&D		63,998		-		29,231		-
		712,569	$	90,239		539,336	$	28,964
Accumulated amortization		90,239				28,964
Net book value of amortizable intangible assets	$	622,330			$	510,372

For the years ended December 31, 2013, 2012 and 2011, amortization of intangible assets charged to operations was approximately $61.3 million, $8.1 million and $3.8 million, respectively. The weighted average remaining amortization period for intangible assets as of December 31, 2013 and 2012 was approximately 8.0 years and 9.4 years, respectively.

Estimated amortization expense, for all intangible assets, for the five years subsequent to December 31, 2013 is as follows (in thousands):


Year ending December 31,
2014	$	80,685
2015		80,379
2016		80,287
2017		78,929
2018		72,753
Thereafter		229,297

- 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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