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96
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 $131.0 million, $75.5 million, and $59.2
million for the years ended December 31, 2015, 2014, and 2013, respectively. The following table summarizes the estimated future
amortization expense for intangible assets that are currently being amortized.
Fiscal year:
2016
$
118.9
2017
103.1
2018
90.1
2019
75.8
2020
41.4
Thereafter
102.7
Total
$
532.0
In-process technology refers to research and development efforts that were in process on the date the Company acquired Saperion AG.
Under the accounting guidance for intangible assets, in-process research and development acquired in a business combination is
considered an indefinite lived asset until completion or abandonment of the associated research and development efforts. The
Company begins amortizing its in-process technology assets upon completion of the projects.
The Company reevaluated the indefinite useful life assumption for its Perceptive Software trade name asset in 2013 as required under
the accounting guidance for indefinite-lived intangible assets. The asset, which was originally valued at $32.3 million, was deemed to
no longer have an indefinite useful life following changes in management’s expected use of the name as evidenced by the
centralization of the Company’s marketing organization across ISS and Perceptive Software during the fourth quarter of 2013.
Accordingly, the Company commenced amortization over the asset’s estimated useful life. In April 2015 the Company announced a
strategic rebranding action, which involved changing the name of the Company’s Perceptive Software segment to Lexmark Enterprise
Software. As a result of this change the Company accelerated amortization of the Perceptive Software trade name asset, resulting in an
additional $18.8 million being recognized in Selling, general and administrative on the Company’s Consolidated Statements of
Earnings for year ended December 31, 2015. The asset was fully amortized by the end of 2015. The Company will continue to use the
Perceptive Software trade name in some of its software product names. Refer to Note 20 of the Notes to Consolidated Financial
Statements for more information on the rebranding. The Company’s expected use of its acquired trade names and trademarks could
change in future periods as the Company considers alternatives for going to market with its acquired software and solutions products.
The Company accounts for its internal-use software, an intangible asset by nature, in Property, plant and equipment, net on the
Consolidated Statements of Financial Position. Refer to Note 10 of the Notes to Consolidated Financial Statements for disclosures
regarding internal-use software.
12. ACCRUED LIABILITIES AND OTHER LIABILITIES
Accrued liabilities, in the current liabilities section of the Consolidated Statements of Financial Position, consisted of the following at
December 31:
2015
2014
Deferred revenue
$
273.7
$
208.8
Compensation
105.3
133.4
Copyright fees
0.2
56.3
Qualified restructuring
69.4
13.5
Other
221.2
260.3
Accrued liabilities
$
669.8
$
672.3
The $2.5 million decrease in Accrued liabilities was primarily due to the reversal of accrued copyright fee levies of $23.5 million in
the second quarter of 2015 based on the anticipated settlement of the litigation and the related settlement payment of $23.3 million
(refer to Note 19 of the Notes to Consolidated Financial Statements for additional information). Additional significant decreases of
$20.8 million in other accrued liabilities were driven by tax related accruals, mainly related to the Company’s early adoption of ASU
2015-17 (Balance Sheet Classification of Deferred Taxes). Refer to Note 14 of the Notes to Consolidated Financial Statements for
additional information. These decreases were partially offset by an increase in deferred revenue of $64.9 million, due partially to the