Goodwill and Other Intangible Asset Data

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Asset Data

Note 9 Goodwill and Other Intangible Asset Data

In 2014, we acquired intangible assets in the amount of $1.014 billion for developed technology, customer relationships and trade names associated with the Acquisition. These intangible assets have an estimated useful life ranging from 1 to 15 years. See Note 3 Business Combinations for specific information regarding the Acquisition. In 2013, we acquired intangible assets in the amount of $37.2 million for developed technology, customer relationships and trade names associated with the acquisition of Hart Systems, LLC.

Intangible asset data are as follows (in thousands):


	As of December 31, 2014
	Gross Amount		Accumulated Amortization			Net Amount
Amortized intangible assets
Current technology	$	23,201	$	(16,499	)	$	6,702
Trade names		40,300		(1,967	)		38,333
Unpatented technology		280,000		(12,889	)		267,111
Patent and patent rights		244,569		(31,832	)		212,737
Customer relationships		532,591		(28,181	)		504,410

Total	$	1,120,661	$	(91,368	)	$	1,029,293

Amortization expense for the year ended December 31, 2014			$	54,096


Estimated amortization expense:
For the year ended December 31, 2015	$	244,376
For the year ended December 31, 2016		230,825
For the year ended December 31, 2017		212,023
For the year ended December 31, 2018		117,534
For the year ended December 31, 2019		90,441
Thereafter		134,094

Total	$	1,029,293


	As of December 31, 2013
	Gross Amount		Accumulated Amortization			Net Amount
Amortized intangible assets
Current technology	$	23,778	$	(14,060	)	$	9,718
Trade names		300		(300	)		0
Patent and patent rights		29,569		(17,919	)		11,650
Customer relationships		52,593		(4,993	)		47,600

Total	$	106,240	$	(37,272	)	$	68,968

Amortization expense for the year ended December 31, 2013			$	7,383

Changes in the net carrying value amount of goodwill were as follows (in thousands):


	Total
Goodwill as of December 31, 2011		79,703
Acquisition – LaserBand		24,353
Impairment charge – 2012		(9,114	)

Goodwill as of December 31, 2012		94,942
Acquisition – Hart Systems		60,858

Goodwill as of December 31, 2013		155,800
Goodwill adjustment – Hart Systems 2014		(2,284	)
Acquisition – Enterprise		2,335,994

Goodwill as of December 31, 2014	$	2,489,510

Gross goodwill was $180.7 million and accumulated impairments through 2011 were $101.0 million. In 2014, we acquired goodwill in the amount of $2.336 billion and because the purchase price allocation related to the Acquisition has not been finalized, the entire goodwill is assigned to the Enterprise segment. The assignment of goodwill to reporting units has not been completed as of date these financial statements are issued.

In the fourth quarter 2013, Zebra acquired all of the outstanding membership interests in Hart Systems, LLC (a New York limited liability company) with $60.9 million of the purchase price allocated to goodwill. As of September 27, 2014 the purchase price allocation was finalized and the amount of goodwill was reduced to $58.6 million for adjustments related to deferred taxes. Zebra performed a quantitative assessment of goodwill related to Hart Systems, LLC., as of the first day of the fourth quarter and determined there was no impairment of goodwill.

- 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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