Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

v2.4.0.8
Intangible Assets
9 Months Ended
Sep. 30, 2014
Intangible Assets / Goodwill [Abstract]  
Intangible Assets

5 – Intangible Assets

The following table summarizes the components of gross and net intangible asset balances (in thousands):


 

 

 

September 30, 2014

 

 

December 31, 2013

 

 

 

 

Gross Carrying Amount

Accumulated Impairment

 

Accumulated Amortization

 

 

Net Book Value

 

 

 

Gross Carrying Amount

Accumulated Impairment

 

Accumulated Amortization

 

 

 

Net Book Value

 

 

 

Intangible assets with definite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Technology

 

 

$64,949

--

 

 

$(27,566)

 

 

 

$37,383

 

 

 

$65,904

--

 

 

$(25,519)

 

 

 

$40,385

 

Customer related

 

 

31,480

--

 

 

(11,245)

 

 

 

20,235

 

 

 

31,231

--

 

 

(9,763)

 

 

 

21,468

 

Internally developed software

 

 

13,663

--

 

 

(6,126)

 

 

 

7,537

 

 

 

11,069

--

 

 

(5,107)

 

 

 

5,962

 

Patents

 

 

2,851

--

 

 

(2,162)

 

 

 

689

 

 

 

2,724

--

 

 

(2,094)

 

 

 

630

 

Backlog

 

 

720

--

 

 

(720)

 

 

 

--

 

 

 

722

--

 

 

(722)

 

 

 

--

 

Definite-lived intangible assets

 

 

113,664

 

 

 

(47,819)

 

 

 

65,844

 

 

 

111,650

--

 

 

(43,205)

 

 

 

68,445

 

Intangible assets with indefinite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tradenames

 

 

32,638

(2,967)

 

 

--

 

 

 

29,671

 

 

 

33,435

(3,060)

 

 

--

 

 

 

30,375

 

Total Intangibles

 

 

$146,302

$(2,967)

 

 

$(47,819)

 

 

 

$95,515

 

 

 

$145,085

$(3,060)

 

 

$(43,205)

 

 

 

$98,820

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Definite-lived intangible assets are amortized over their weighted average lives of 15 years for technology, 11 years for customer related intangibles, 7 years for internally developed software, and 14 years for patents. Intangible assets with indefinite lives are not subject to amortization.

Internally developed software consists of $12.2 million relating to costs incurred for development of internal use computer software and $1.5 million for development of software to be sold.

Amortization expense related to intangible assets with definite lives was as follows (in thousands):

 

 

Three Months Ended September 30,

Nine Months Ended September 30,

 

2014

2013

2014

2013

 

 

 

 

 

Technology

$1,057

$1,095

$2,985

$3,260

Customer related

294

678

1,247

2,000

Internally developed software

321

262

1,049

771

Patents

17

30

83

91

Total amortization

$1,689

$2,065

$5,364

$6,122

 

 

 

 

 

 

              During the second quarter 2014 we identified an inaccuracy related to intangibles amortization. Amortization expense was being recorded on a straight line basis in USD for foreign entities when the expense should have been recorded on a straight line basis in the entities’ functional currency. As a result there was a $1.1 million adjustment to reduce amortization expense in the second quarter 2014 related to prior periods. 

 

Expected amortization expense related to amortizable intangible assets is as follows (in thousands):

 

 

 

Three months ending December 31, 2014

$

 

1,827

2015

 

 

7,777

2016

 

 

7,028

2017

 

 

6,741

2018

 

 

6,511

2019

 

 

5,538

Thereafter

 

 

30,422

Total expected amortization expense

$

 

65,844