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SEC Filings

10-Q
HEARTWARE INTERNATIONAL, INC. filed this Form 10-Q on 11/02/2015
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Table of Contents

Our other intangible assets are amortized using the straight-line method over their estimated useful lives as follows:

 

Patents

     15 years   

Purchased intangible assets

  

Tradenames

     15 years   

Customer relationships

     20 years   

Acquired technology rights

     6 to 16 years   

Amortization expense for the three months ended September 30, 2015 and 2014 was $0.5 million and $0.4 million, respectively. Amortization expense for the nine months ended September 30, 2015 and 2014 was $1.5 million and $1.2 million, respectively.

We also evaluate the carrying value of our long-lived assets, including purchased intangible assets, whenever events, changes in business circumstances or our planned use of long-lived assets indicate that their carrying amounts may not be fully recoverable or that their useful lives are no longer appropriate. If these facts and circumstances exist, we assess for recovery by comparing the carrying values of long-lived assets with their future undiscounted net cash flows. If the comparison indicates that impairment exists, impairment losses are recorded for the excess of the carrying value over the fair value of the long-lived assets based on discounted cash flows. Significant management judgment is required in the forecast of future operating results that are used in the preparation of expected undiscounted cash flows. During the fourth quarter of 2015 we will evaluate internal timelines and development plans for the SYNERGY System. Our evaluation will take into consideration, among other things, progress with respect to underlying MVAD pump technology and resources dedicated to SYNERGY System development. This evaluation may have an impact on overall development timelines and/or cash flows of the SYNERGY System, the effect of which may result in an impairment of related purchased intangible assets.

Note 7. Debt

At September 30, 2015 and December 31, 2014, we had outstanding convertible debt as follows:

 

     September 30,
2015
     December 31,
2014
 
     (in thousands)  

Principal amount of the 3.5% convertible senior notes, due 2017

   $ 42,471       $ 143,750   

Unamortized discount

     (6,663      (28,947
  

 

 

    

 

 

 
   $ 35,808       $ 114,803   
  

 

 

    

 

 

 

Equity component

   $ 7,629       $ 55,038   
  

 

 

    

 

 

 

Principal amount of the 1.75% convertible senior notes, due 2021

   $ 202,366       $ —     

Unamortized discount

     (49,385      —     
  

 

 

    

 

 

 
   $ 152,981       $ —     
  

 

 

    

 

 

 

Equity component

   $ 47,400       $ —     
  

 

 

    

 

 

 

 

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