Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the net carrying amount of goodwill for the three months ended March 31, 2019 are as follows:



Balance as of December 31, 2018	$	400,440

Goodwill resulting from business acquisition	214,793

Foreign currency translation	(81		)

Balance as of March 31, 2019	$	615,152

Assets and liabilities of acquired businesses are recorded at their estimated fair values as of the date of acquisition. Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. During the three months ended March 31, 2019, the Company acquired Buffalo Filter as further described in Note 3. Goodwill resulting from the acquisition amounted to $214.8 million and acquired intangible assets including customer and distributor relationships, developed technology and trademarks and tradenames amounted to $141.0 million.

Other intangible assets consist of the following:



	March 31, 2019						December 31, 2018
	Weighted Average Amortization Period (Years)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:

Customer and distributor relationships	24	$	339,529	$	(101,057	)	$	214,577	$	(97,131	)

Sales representation, marketing and promotional rights	25	149,376		(43,500		)	149,376		(42,000		)

Patents and other intangible assets	15	68,704		(44,783		)	61,473		(44,242		)

Developed technology	15	100,965		(8,753		)	91,965		(7,369		)

Unamortized intangible assets:

Trademarks and tradenames		86,544		—			86,544		—

	22	$	745,118	$	(198,093	)	$	603,935	$	(190,742	)

Customer and distributor relationships, trademarks and tradenames, developed technology and patents and other intangible assets primarily represent allocations of purchase price to identifiable intangible assets of acquired businesses. Sales representation, marketing and promotional rights represent intangible assets created under our agreement with Musculoskeletal Transplant Foundation (“MTF”).

Amortization expense related to intangible assets which are subject to amortization totaled $7.4 million and $5.5 million in the three months ended March 31, 2019 and 2018, respectively, and is included as a reduction of revenue (for amortization related to our sales representation, marketing and promotional rights) and in selling and administrative expense (for all other intangible assets) in the consolidated condensed statements of comprehensive income. Included in developed technology is $5.5 million of earn-out consideration that is considered probable as of March 31, 2019 associated with a prior asset acquisition. This is recorded in other current liabilities at March 31, 2019.

The estimated intangible asset amortization expense remaining for the year ending December 31, 2019 and for each of the five succeeding years is as follows:



	Amortization included in expense		Amortization recorded as a reduction of revenue		Total
Remaining, 2019	$	20,764	$	4,500	$	25,264
2020	27,890		6,000		33,890
2021	27,099		6,000		33,099
2022	25,849		6,000		31,849
2023	25,061		6,000		31,061
2024	24,358		6,000		30,358