3. Goodwill and Other Intangible Assets
The changes in the carrying value of goodwill for each of our reportable segments for the fiscal year ended April 27, 2013 are as follows:
| Balance at April 28, 2012 |
Acquisition Activity |
Other Activity |
Balance at April 27, 2013 |
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Dental supply |
$ | 132,677 | $ | 5,190 | $ | — | $ | 137,867 | ||||||||
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Rehabilitation supply |
543,131 | — | 5,889 | 549,020 | ||||||||||||
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Veterinary supply |
134,444 | 2,250 | 159 | 136,853 | ||||||||||||
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Total |
$ | 810,252 | $ | 7,440 | $ | 6,048 | $ | 823,740 | ||||||||
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The increase in the acquisition activity column during the twelve-month period ended April 27, 2013 primarily reflects the preliminary purchase price allocation for the Dental segment acquisition of Iowa Dental Supply and the Veterinary segment acquisition of American Veterinary Supply Corporation, which were acquired in fiscal 2013. The other activity column is comprised primarily of earn-out payments made related to acquisitions completed prior to the adoption of the guidance in ASC 805 and foreign currency translation.
Other intangibles assets acquired in the acquisitions in fiscal 2013 had a fair value of approximately $4,910 and a weighted average useful life of 10 years.
Balances of other intangible assets excluding goodwill are as follows:
| April 27, 2013 |
April 28, 2012 |
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Unamortized – indefinite lived: |
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Copyrights, trade names and trademarks |
$ | 76,464 | $ | 76,464 | ||||
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Amortized: |
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Distribution agreement, customer lists and other |
235,781 | 231,739 | ||||||
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Less: Accumulated amortization |
(115,589 | ) | (95,646 | ) | ||||
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Net amortized intangible assets |
120,192 | 136,093 | ||||||
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Total identifiable intangible assets, net |
$ | 196,656 | $ | 212,557 | ||||
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In 2006, we extended our exclusive North American distribution agreement with Sirona Dental Systems GmbH (“Sirona”) for Sirona’s CEREC dental restorative system. We paid a $100,000 distribution fee to extend the agreement for a 10-year period that began in October 2007, which is included in identifiable intangibles, net in the consolidated balance sheet. The amortization of the distribution agreement fee is recorded over the 10-year period based on estimates of the pattern in which the economic benefits of the fee are expected to be realized, consisting primarily of revenues generated from the sale of CEREC dental restorative systems. Amortization expense in any year may differ significantly from other years. In early fiscal 2013, we expanded our exclusive distribution relationship with Sirona to add SIRONA imaging products to our exclusive offerings, as well as add mechanisms to adjust the exclusivity term depending on performance. No additional monies were exchanged as part of this expanded relationship. This is not a “take-or-pay” contract.
With respect to the amortized intangible assets, future amortization expense is expected to approximate $22,847, $23,664, $24,609, $24,978, $11,460 for fiscal years 2014, 2015, 2016, 2017 and 2018, respectively. The preceding expected amortization expense is an estimate. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, actual revenues generated from the sale of CEREC dental restorative systems, changes in foreign currency exchange rates, impairment of intangible assets, accelerated amortization of intangible assets and other events.