Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Assets Acquired

The Company acquired the following intangible assets in 2012:



(Dollars in thousands)	Amount		Weighted-average Amortization Period
Customer relationships	$	257	5.0 Years
Trade Name	62		5.0 Years
Technology	212		5.0 Years
Total assets subject to amortization	$	531	5.0 Years

Goodwill	$	4,717	Not Applicable

The assets subject to amortization were acquired as part of the purchase of the capital stock of AMC in the first quarter 2012. The additional goodwill resulted from the AMC acquisition as well as from the final adjustments to the purchase price allocation from the acquisition of EIS in the fourth quarter 2011.

Assets Subject to Amortization

The cost, accumulated amortization and net book value of intangible assets subject to amortization as of December 31, 2012 and 2011 and the amortization expense for each year then ended is as follows:



(Thousands)	2012			2011
Deferred financing costs
Cost	$	6,427		$	6,427
Accumulated amortization	(4,048		)	(3,399		)
Net book value	2,379			3,028
Customer relationships
Cost	38,427			38,170
Accumulated amortization	(18,703		)	(14,684		)
Net book value	19,724			23,486
Technology
Cost	12,092			11,880
Accumulated amortization	(6,538		)	(5,074		)
Net book value	5,554			6,806
License
Cost	2,480			2,480
Accumulated amortization	(1,340		)	(850		)
Net book value	1,140			1,630
Non-compete contracts
Cost	550			550
Accumulated amortization	(530		)	(505		)
Net book value	20			45
Trade Name
Cost	62			—
Accumulated amortization	(10		)	—
Net book value	52			—
Total
Cost	$	60,038		$	59,507
Accumulated amortization	(31,169		)	(24,512		)
Net book value	$	28,869		$	34,995
Aggregate amortization expense	$	6,657		$	6,703

The aggregate amortization expense is estimated to be $6.1 million in 2013, $5.8 million in 2014, $5.7 million in 2015, $4.8 million in 2016 and $3.9 million in 2017.

Assets Not Subject to Amortization

The Company’s only intangible asset not subject to amortization is goodwill. A reconciliation of the goodwill activity for 2012 and 2011 is as follows:



(Thousands)	2012		2011
Balance at the beginning of the year	$	84,036	$	72,936
Current year additions	4,717		11,100
Balance at the end of the year	$	88,753	$	84,036

Goodwill totaling $86.9 million has been assigned to the Advanced Material Technologies segment while the remaining $1.9 million has been assigned to the Beryllium and Composites segment.

The goodwill acquired in 2012 and 2011 was not deductible for tax purposes.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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