Intangible Assets

9 Months Ended

Jun. 30, 2013

Intangible Assets

Intangible Assets

5. Intangible Assets

All of Headwaters’ identified intangible assets are currently being amortized. The following table summarizes the gross carrying amounts and related accumulated amortization of intangible assets as of:

		September 30, 2012					June 30, 2013
(in thousands)	Estimated useful lives	Gross Carrying Amount			Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
CCP contracts	20 years	$	106,400		$	53,379	$	106,400	$	57,368
Customer relationships	5 - 15 years	72,464			38,382		84,613		42,681
Trade names	5 - 20 years	67,890			27,105		75,963		29,999
Patents and patented technologies	4 - 19 years	55,102			41,661		55,002		45,640
Other	3 - 17 years	3,760			1,178		4,660		1,560
		$		305,616	$	161,705	$	326,638	$	177,248

The increase in gross carrying amount of intangible assets from September 30, 2012 to June 30, 2013 is primarily attributable to assets acquired in the Kleer Lumber acquisition described in Note 11. Total amortization expense related to intangible assets was approximately $4.9 million and $5.3 million for the quarters ended June 30, 2012 and 2013, respectively, and approximately $15.7 million and $15.5 million for the nine months ended June 30, 2012 and 2013, respectively. Amortization expense for the 2013 periods is subject to finalization of the valuation efforts related to the intangible assets acquired in the Kleer Lumber transaction, all as described in Note 11. Total currently estimated annual amortization expense for fiscal years 2013 through 2018 is shown in the following table.

Year ending September 30:	(in thousands)
2013	$	21,068
2014	20,693
2015	16,539
2016	16,282
2017	15,404
2018	15,129