XML 47 R11.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

4. Intangible Assets, Goodwill and Other | 12 Months Ended
--- | ---
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets Disclosure | 4. GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS Changes to goodwill by segment were as follows (in millions):
|  | 2019 |  |  | 2018
|  | Life Science |  | Clinical Diagnostics |  | Total |  |  | Life Science |  | Clinical Diagnostics |  | Total
Balances as of January 1: |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 234.5 |  |  | $ | 320.5 |  |  | $ | 555.0 |  |  |  | $ | 234.7 |  |  | $ | 324.6 |  |  | $ | 559.3 |
Accumulated impairment losses and write-offs |  | (41.8 | ) |  | (293.4 | ) |  | (335.2 | ) |  |  | (35.9 | ) |  | (17.3 | ) |  | (53.2 | )
Goodwill, net |  | 192.7 |  |  | 27.1 |  |  | 219.8 |  |  |  | 198.8 |  |  | 307.3 |  |  | 506.1 |
Acquisitions |  | 15.6 |  |  | 28.7 |  |  | 44.3 |  |  |  | — |  |  | — |  |  | — |
Divestiture |  | — |  |  | — |  |  | — |  |  |  | — |  |  | (1.4 | ) |  | (1.4 | )
Impairment |  | — |  |  | — |  |  | — |  |  |  | (5.9 | ) |  | (276.1 | ) |  | (282.0 | )
Currency fluctuations |  | — |  |  | — |  |  | — |  |  |  | (0.2 | ) |  | (2.7 | ) |  | (2.9 | )
Balances as of December 31: |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | 250.1 |  |  | 349.2 |  |  | 599.3 |  |  |  | 234.5 |  |  | 320.5 |  |  | 555.0 |
Accumulated impairment losses and write-offs |  | (41.8 | ) |  | (293.4 | ) |  | (335.2 | ) |  |  | (41.8 | ) |  | (293.4 | ) |  | (335.2 | )
Goodwill, net |  | $ | 208.3 |  |  | $ | 55.8 |  |  | $ | 264.1 |  |  |  | $ | 192.7 |  |  | $ | 27.1 |  |  | $ | 219.8 |
In conjunction with the purchase of all the issued and outstanding shares of a foreign distributor in October 2019 (see Note 2, "Acquisitions"), we recorded $3.4 million of Customer relationships, a definite-lived intangible assets. In conjunction with the purchase of all the issued and outstanding membership interests of Exact Diagnostics, LLC in August 2019 (see Note 2, "Acquisitions"), we recorded $28.7 million of goodwill and $26.8 million of definite-lived intangible assets: $16.1 million of Customer relationships, $8.1 million of Developed product technology, $2.5 million of Tradenames and $0.1 million of Backlog. In conjunction with the purchase of all the issued and outstanding stock of a small U.S. private company in March 2019 (see Note 2, "Acquisitions"), we recorded $15.6 million of goodwill that included workforce and time-to-market advantage, $5.5 million of Developed product technology, a definite-lived intangible asset, and $0.2 million of In-process research and development, an indefinite-lived intangible asset. In March 2018, we wrote off $1.4 million of goodwill from our Clinical Diagnostics segment as a result of a divestiture of a product line. In 2018, we impaired goodwill associated with our 1999 acquisition of Pasteur Sanofi Diagnostics S.A., 2007 through 2012 acquisitions of DiaMed Holding AG, DiaMed Fennica Oy, DiaMed (G.B.) Limited, and DiaMed Benelux (collectively DiaMed), 2010 acquisition of Biotest AG, and 2013 acquisition of AbD Serotec in the amounts of $18.1 million, $247.2 million, $10.8 million and $5.9 million, respectively. Goodwill for DiaMed, Biotest AG and AbD Serotec was fully impaired at December 31, 2018. Impairments for the Pasteur Sanofi Diagnostics S.A., DiaMed and Biotest AG were included in our Clinical Diagnostics segment's results of operations, and the impairment for AbD Serotec was included in our Life Science segment's results of operations. The impairments were based upon a revision of our Level 3 valuation inputs, i.e., expected future cash flows. Information regarding our identifiable purchased intangible assets with definite and indefinite lives is as follows (in millions):
| December 31, 2019
| Weighted-Average Amortization Period (years) |  | Purchase Price |  | Accumulated Amortization |  | Net Carrying Amount
Customer relationships/lists | 6.36 |  | $ | 107.2 |  |  | $ | (74.3 | ) |  | $ | 32.9 |
Know how | 5.71 |  | 188.5 |  |  | (162.6 | ) |  | 25.9 |
Developed product technology | 8.31 |  | 144.2 |  |  | (93.9 | ) |  | 50.3 |
Licenses | 8.74 |  | 76.0 |  |  | (44.4 | ) |  | 31.6 |
Tradenames | 8.50 |  | 6.4 |  |  | (3.6 | ) |  | 2.8 |
Covenants not to compete | 6.01 |  | 3.2 |  |  | (1.4 | ) |  | 1.8 |
Other | — |  | 0.1 |  |  | (0.1 | ) |  | — |
Total definite-lived intangible assets |  |  | 525.6 |  |  | (380.3 | ) |  | 145.3 |
In-process research and development |  |  | 0.2 |  |  | — |  |  | 0.2 |
Total purchased intangible assets |  |  | $ | 525.8 |  |  | $ | (380.3 | ) |  | $ | 145.5 |
| December 31, 2018
| Weighted-Average Amortization Period (years) |  | Purchase Price |  | Accumulated Amortization |  | Net Carrying Amount
Customer relationships/lists | 3.98 |  | $ | 88.7 |  |  | $ | (68.3 | ) |  | $ | 20.4 |
Know how | 6.64 |  | 190.6 |  |  | (159.8 | ) |  | 30.8 |
Developed product technology | 8.34 |  | 130.4 |  |  | (86.6 | ) |  | 43.8 |
Licenses | 9.72 |  | 76.3 |  |  | (40.9 | ) |  | 35.4 |
Tradenames | 3.42 |  | 3.9 |  |  | (3.3 | ) |  | 0.6 |
Covenants not to compete | 7.01 |  | 3.2 |  |  | (1.1 | ) |  | 2.1 |
Total definite-lived intangible assets |  |  | $ | 493.1 |  |  | $ | (360.0 | ) |  | $ | 133.1 |
In 2018, we impaired developed product technology and fully impaired covenants not to compete in the amounts of $8.8 million and $1.7 million, respectively, associated with our 2012 acquisition of a cell sorting system from Propel Labs, Inc. These impairments were included in our Life Science segment's results of operations. The impairments were based upon a revision of our Level 3 valuation inputs, i.e., expected future cash flows. Amortization expense related to purchased intangible assets for the years ended December 31, 2019, 2018 and 2017 was $23.5 million, $28.3 million and $30.8 million, respectively. Estimated future amortization expense (based on existing purchased intangible assets) for the years ending December 31, 2020, 2021, 2022, 2023, 2024 and thereafter is $23.5 million, $22.8 million, $19.6 million, $18.7 million, $16.6 million, and $44.1 million, respectively.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration