| 9. | GOODWILL AND OTHER INTANGIBLE ASSETS |
The following table summarizes the changes in the carrying amount of goodwill (in millions):
| Americas | Europe | Asia Pacific | Total | |||||||||||||
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Balance at January 1, 2012 |
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Goodwill |
$ | 1,595.3 | $ | 1,111.8 | $ | 195.9 | $ | 2,903.0 | ||||||||
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Accumulated impairment losses |
(277.0 | ) | – | – | (277.0 | ) | ||||||||||
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| 1,318.3 | 1,111.8 | 195.9 | 2,626.0 | |||||||||||||
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U.S. Spine reporting unit impairment |
(96.0 | ) | – | – | (96.0 | ) | ||||||||||
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Acquisitions |
25.9 | – | – | 25.9 | ||||||||||||
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Currency translation |
2.7 | 16.8 | (3.6 | ) | 15.9 | |||||||||||
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Balance at December 31, 2012 |
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Goodwill |
1,623.9 | 1,128.6 | 192.3 | 2,944.8 | ||||||||||||
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Accumulated impairment losses |
(373.0 | ) | – | – | (373.0 | ) | ||||||||||
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| 1,250.9 | 1,128.6 | 192.3 | 2,571.8 | |||||||||||||
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Acquisitions |
11.0 | 24.0 | – | 35.0 | ||||||||||||
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Currency translation |
(5.0 | ) | 34.5 | (25.1 | ) | 4.4 | ||||||||||
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Balance at December 31, 2013 |
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Goodwill |
1,629.9 | 1,187.1 | 167.2 | 2,984.2 | ||||||||||||
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Accumulated impairment losses |
(373.0 | ) | – | – | (373.0 | ) | ||||||||||
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| $ | 1,256.9 | $ | 1,187.1 | $ | 167.2 | $ | 2,611.2 | |||||||||
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The components of identifiable intangible assets are as follows (in millions):
| Technology | Intellectual Property Rights |
Trademarks and Trade Names |
Customer Relationships |
Other | Total | |||||||||||||||||||
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As of December 31, 2013: |
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Intangible assets subject to amortization: |
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Gross carrying amount |
$ | 700.4 | $ | 173.4 | $ | 43.3 | $ | 216.2 | $ | 95.1 | $ | 1,228.4 | ||||||||||||
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Accumulated amortization |
(401.4 | ) | (142.5 | ) | (33.9 | ) | (76.4 | ) | (43.9 | ) | (698.1 | ) | ||||||||||||
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Intangible assets not subject to amortization: |
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Gross carrying amount |
– | – | 177.4 | – | – | 177.4 | ||||||||||||||||||
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Total identifiable intangible assets |
$ | 299.0 | $ | 30.9 | $ | 186.8 | $ | 139.8 | $ | 51.2 | $ | 707.7 | ||||||||||||
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As of December 31, 2012: |
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Intangible assets subject to amortization: |
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Gross carrying amount |
$ | 695.1 | $ | 173.4 | $ | 47.4 | $ | 177.0 | $ | 95.7 | $ | 1,188.6 | ||||||||||||
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Accumulated amortization |
(362.5 | ) | (124.2 | ) | (31.1 | ) | (61.7 | ) | (46.0 | ) | (625.5 | ) | ||||||||||||
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Intangible assets not subject to amortization: |
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Gross carrying amount |
– | – | 177.6 | – | – | 177.6 | ||||||||||||||||||
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Total identifiable intangible assets |
$ | 332.6 | $ | 49.2 | $ | 193.9 | $ | 115.3 | $ | 49.7 | $ | 740.7 | ||||||||||||
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Intangible amortization expense was recorded as follows (in millions):
| For the Years Ended December 31, | 2013 | 2012 | 2011 | |||||||||
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Cost of products sold |
$ | 18.3 | $ | 24.0 | $ | 26.7 | ||||||
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Selling, general and administrative |
77.6 | 73.1 | 67.1 | |||||||||
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Total intangible amortization |
$ | 95.9 | $ | 97.1 | $ | 93.8 | ||||||
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Estimated annual amortization expense based upon intangible assets recognized as of December 31, 2013 for the years ending December 31, 2014 through 2018 is (in millions):
| For the Years Ending December 31, | ||||
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2014 |
$ | 98.0 | ||
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2015 |
84.7 | |||
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2016 |
74.4 | |||
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2017 |
61.6 | |||
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2018 |
45.8 | |||