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

6 Months Ended

Jun. 30, 2014

Goodwill and Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets

Note 4. Goodwill and Other Intangible Assets

Goodwill

Changes in the carrying amount of the Company's goodwill for the six months ended June 30, 2014, are as follows (in millions):

Goodwill as of December 31, 2013	$	1,195.9
Goodwill acquired		7.7
Translation differences		(0.3	)
Goodwill as of June 30, 2014	$	1,203.3

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

	June 30, 2014				December 31, 2013
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Developed technology	$	474,750	$	81,007	$	447,842	$	54,029
Patents		14,378		7,324		14,065		6,523
Trademarks and trade names		59,046		6,644		59,019		3,817
Customer relationships		102,995		17,452		100,679		10,793
Non-compete agreement		10,843		2,579		10,354		1,249
Capitalized software development costs		17,137		14,092		16,612		13,828
In process research and development		37,515		-		63,998		-

		716,664	$	129,098		712,569	$	90,239
Accumulated amortization		129,098				90,239
Net book value of amortizable intangible assets	$	587,566			$	622,330

In process research and development with a gross carrying value of $26.9 million as of December 31, 2013, of which $23.7 million was acquired in connection with the Makerbot transaction, was launched during the six months ended June 30, 2014 and is now classified as developed technology with a seven-year weighted average life for amortization.

Amortization expense relating to intangible assets for the three-month periods ended June 30, 2014 and 2013 was approximately $ 19.9 million and $13.1 million, respectively.

Amortization expense relating to intangible assets for the six-month periods ended June 30, 2014 and 2013 was approximately $ 38.9 million and $26.2 million, respectively.

As of June 30, 2014, estimated amortization expense relating to intangible assets currently subject to amortization for each of the next five years and thereafter was as follows (in thousands):

Remaining 6 months of 2014	$	39,566
2015		79,130
2016		78,335
2017		76,713
2018		70,800
Thereafter		205,507

- 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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