Bausch & Lomb 1999 Annual Report

accepted accounting principles to revenue recognition in financial
statements. Management believes the company’s revenue recognition
policies, as more fully described above, comply with the
guidance contained in SAB 101 and, therefore, the company’s
results of operations will not be materially affected.
2. Acquisitions
The following table presents information about acquisitions by
the company during the two year period ended December 25,
1999, as well as the goodwill and other intangible asset balances
at December 26, 1998 and December 25, 1999. The 1999 and
1998 acquisitions were accounted for under the purchase method
with a portion of the purchase price allocated to goodwill and
other intangible assets and, in some cases, purchased in-process
research and development (IPR&D).
Goodwill Other Intangibles
(gross) (gross) Total
Balances at December 26, 1998
Storz1 $ 107.7 $172.1 $ 279.8
Chiron Vision2 104.0 96.3 200.3
Dr. Winzer Pharma3 31.4 .– 31.4
All other – continuing4 153.5 37.2 190.7
All other – discontinued5 182.4 11.6 194.0
Activity during 1999
579.0 317.2 896.2
Hansa6 17.7 .– 17.7
Orbtek6 12.1 12.4 24.5
All other – discontinued5 (182.4) (11.6) (194.0)
Other 1999 activity .– (8.3) (8.3)
Balance at December 25, 1999 $ 426.4 $309.7 $ 736.1
Accumulated Amortization7 Goodwill and Other Intangibles, net
(129.3)
at December 25, 1999 $ 606.8
1 Storz Instrument Company, Storz Ophthalmics, Inc. and Cyanamid Chirurgie S.A.S. (collectively, Storz) was a leading manufacturer of ophthalmic surgical instruments, surgical
and diagnostic equipment, intraocular lens implants and ophthalmic pharmaceuticals. It was acquired at the beginning of 1998 for $369.7 in cash. Goodwill is being amortized
over an original life of 40 years. Other intangible assets are being amortized over original lives as follows: tradename of $37.3 and workforce of $12.9, 17 years; customer relationships
of $80.8, 40 years; and technology/patents of $28.0, 10 years.
2 Chiron Vision Corporation, acquired for cash of $298.1 in the beginning of 1998, researched, developed and manufactured innovative products that improved results in cataract
and refractive surgeries and that enhanced the treatment of progressive eye diseases. Goodwill is being amortized over an original life of 20 years. Other intangible assets are
being amortized over original lives as follows: tradename of $26.4 and customer relationships of $41.4, 20 years; workforce of $10.7, 14 years; and technology/patents of $18.1,
8 years.
3 Dr. Winzer Pharma, a pharmaceutical company in Germany, was acquired in May 1998. Goodwill has an original life of 15 years.
4 Goodwill includes the following amounts: Dr. Mann Pharma, acquired in 1986, $82.5 with an original life of 30 years; Award, plc, acquired in 1996, $36.3 with an original life of
15 years; remainder has average original life of 26 years with an average remaining life of 19 years.
5 Amounts represent goodwill and other intangibles for businesses sold during 1999 as described in Note 3—Discontinued Operations.
6 Hansa Research and Development, Inc, acquired in January 1999 for $18.4, manufactured the Hansatome microkeratome used in refractive surgery procedures. Goodwill is
being amortized over an original life of 15 years. Orbtek, Inc, acquired in March 1999 for $24.7, developed a unique diagnostic system to give surgeons critical information about
the eye. Goodwill is being amortized over an original life of 20 years. Other intangible assets are being amortized over original lives as follows: workforce of $0.2, 14 years;
regulatory approvals of $8.5, 20 years; and technology/patents of $3.7, 10 years.
7 Accumulated amortization at December 26, 1998 was $137.3.
See the future 25 Bausch & Lomb