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11. GOODWILL AND INTANGIBLE ASSETS
As discussed in Note 4 to the Consolidated Financial Statements the disclosures of goodwill and intangible assets shown below
include preliminary amounts that are subject to measurement period adjustments.
Goodwill
The following table summarizes the changes in the carrying amount of goodwill for each reportable segment and in total during 2014
and 2013.
ISS
Perceptive
Software Total
Balance at January 1, 2013 $ 23.2 $ 355.5 $ 378.7
Goodwill acquired during the period – 78.0 78.0
Goodwill disposed during the period upon sale of business (1.1) – (1.1)
Foreign currency translation (1.3) 0.4 (0.9)
Balance at December 31, 2013 $ 20.8 $ 433.9 $ 454.7
Goodwill acquired during the period – 180.9 180.9
Foreign currency translation (2.0) (27.8) (29.8)
Balance at December 31, 2014 $ 18.8 $ 587.0 $ 605.8
The Company has recorded $180.9 million of goodwill related to the acquisitions of ReadSoft and GNAX Health, including the $3.7
million net impact of measurement period adjustments determined subsequent to the acquisition of ReadSoft, related to facts and
circumstances that existed at the acquisition date. Measurement period adjustments determined in 2014 related to the Company’s
acquisition of Saperion in the third quarter of 2013 were applied retrospectively, reducing the balance of goodwill at December 31,
2013 by $1.3 million. The goodwill balance was reduced in 2013 by $1.1 million upon the sale of the inkjet-related technology and
assets. Refer to Note 4 of the Notes to Consolidated Financial Statements for additional details regarding business combinations
occurring during 2014, 2013, and 2012, as well as information related to divestitures. The Company does not have any accumulated
impairment charges as of December 31, 2014.
Intangible Assets
The following table summarizes the gross carrying amounts and accumulated amortization of the Company’s intangible assets.
December 31, 2014 December 31, 2013
Accum Accum
Gross Amort Net Gross Amort Net
Intangible assets subject to amortization:
Customer relationships $ 141.3 $ (51.7) $ 89.6 $ 117.7 $ (34.6) $ 83.1
Non-compete agreements 2.8 (2.6) 0.2 2.8 (2.3) 0.5
Technology and patents 291.5 (151.7) 139.8 243.4 (104.5) 138.9
Trade names and trademarks 50.0 (16.9) 33.1 42.8 (7.8) 35.0
Total 485.6 (222.9) 262.7 406.7 (149.2) 257.5
Intangible assets not subject to amortization:
In-process technology 1.6 – 1.6 0.5 – 0.5
Total 1.6 – 1.6 0.5 – 0.5
Total identifiable intangible assets $ 487.2 $ (222.9) $ 264.3 $ 407.2 $ (149.2) $ 258.0
Intangible assets acquired in a transaction accounted for as a business combination are initially recognized at fair value. Intangible
assets acquired in a transaction accounted for as an asset acquisition are initially recognized at cost. Of the $487.2 million gross
carrying amount at December 31, 2014, $465.7 million were acquired in transactions accounted for as business combinations, $0.7
million consisted of negotiated non-compete agreements recognized separately from a business combination and $20.8 million were
acquired in transactions accounted for as asset acquisitions.
The year-to-date increases in the intangible assets above were driven by business combinations discussed in Note 4 of the Notes to
Consolidated Financial Statements. Amortization expense related to intangible assets was $75.5 million, $59.2 million, and $44.3
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