ZBRA » Topics » Goodwill and Other Intangible Assets

This excerpt taken from the ZBRA 10-K filed Feb 28, 2006.
Goodwill and Other Intangible Assets.

 

We test the impairment of goodwill each year or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. We completed our last assessment during June 2005. At that time, no adjustment to goodwill was necessary due to impairment.

 

We evaluate the impairment of identifiable intangibles and other long-lived assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

 

Factors considered that might trigger an impairment review consist of:

      Significant underperformance relative to expected historical or projected future operating results

      Significant changes in the manner of use of the acquired assets or the strategy for the overall business

      Significant negative industry or economic trends

      Significant decline in Zebra’s stock price for a sustained period

      Significant decline in market capitalization relative to net book value

 

If we believe that one or more of the above indicators of impairment have occurred, we measure impairment based on a projected discounted cash flow using a discount rate that incorporates the risk inherent in the cash flows.

 

Other intangible assets consist primarily of current technology and customer relationships. These assets are recorded at cost and amortized on a straight-line basis over a weighted-average life of 8 years. Accumulated amortization for these other intangible assets was $10,415,000 and $8,074,000 at December 31, 2005 and 2004, respectively.

 

This excerpt taken from the ZBRA 10-K filed Mar 3, 2005.
Goodwill and Other Intangible Assets.

 

We test the impairment of goodwill each year or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. We completed our last assessment during June 2004.

 

We evaluate the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

 

Factors considered that might trigger an impairment review consist of:

                  Significant underperformance relative to expected historical or projected future operating results

                  Significant changes in the manner of use of the acquired assets or the strategy for the overall business

                  Significant negative industry or economic trends

                  Significant decline in Zebra’s stock price for a sustained period

                  Significant decline in market capitalization relative to net book value

 

If we believe that one or more of the above indicators of impairment have occurred, we measure impairment based on a projected discounted cash flow using a discount rate that incorporates the risk inherent in the cash flows.

 

Other intangible assets consist primarily of current technology and customer relationships. These assets are recorded at cost and amortized on a straight-line basis over 5 to 8 years. Accumulated amortization for these other intangible assets was $8,074,000 and $5,505,000 at December 31, 2004 and 2003, respectively.

 

EXCERPTS ON THIS PAGE:

10-K
Feb 28, 2006
10-K
Mar 3, 2005
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