Intangible Assets

9 Months Ended

Sep. 30, 2012

Intangible Assets [Abstract]

INTANGIBLE ASSETS

NOTE 5 – INTANGIBLE ASSETS

	Nine Months Ended September 30
(in millions)	2012			2011
Gross cost at January 1	$	51.2		$	48.1
Capitalization of internally developed software and other costs		6.4			0.0
Exchange effect		0.2			0.2
Gross cost at September 30		57.8			48.3
Accumulated amortization at January 1		(33.5	)		(29.1	)
Amortization expense		(3.1	)		(3.4	)
Exchange effect		(0.2	)		(0.2	)
Accumulated amortization at September 30		(36.8	)		(32.7	)
Net book amount at September 30	$	21.0		$	15.6

Ethyl

An intangible asset of $22.1 million was previously recognized in respect of Ethyl foregoing their entitlement to a share of the future income stream under the sales and marketing agreements to market and sell TEL. The amount attributed to the Octane Additives reporting segment is being amortized straight-line to December 31, 2013 and the amount attributed to the Fuel Specialties reporting segment is being amortized straight-line to December 31, 2017. An amortization expense of $1.2 million was recognized in the first nine months of 2012 (2011 – $1.5 million) in cost of goods sold.

Internally developed software and other costs

We are continuing with the implementation of a new, company-wide, information system platform. The platform provider is well established in the market. The implementation will be a phased, risk-managed, site deployment and follow a multistage user acceptance program with the existing platform providing a fallback position. Internally developed software and other costs capitalized at September 30, 2012 were $9.5 million (2011 – $0.0 million). No amortization expense was recognized in the first nine months of 2012 (2011 – $0.0 million).

Others

The remaining intangible assets of $26.2 million relate to those recognized in the acquisition accounting in respect of technology, customer relationships and patents. These assets are being amortized straight-line over periods of up to 13 years. In the first nine months of 2012 amortization expenses of $0.8 million and $1.1 million were recognized in cost of goods sold and selling, general and administrative expenses, respectively (2011 - $0.8 million and $1.1 million, respectively).