Intangible Assets and Goodwill

3 Months Ended

Mar. 31, 2013

5. Intangible Assets and Goodwill

The following table presents the components of the Company’s intangible assets as of December 31, 2012 and March 31, 2013:

							Weighted
	December 31,			March 31,			Average Useful
(in thousands)	2012			2013			Life (in years)

Patents	$	1,054		$	1,054		8.0
Less: accumulated amortization	(766		)	(798		)
Patents, net	288			256
Technological know-how	15,141			15,021			6.1
Less: accumulated amortization	(4,913		)	(5,631		)
Technological know-how, net	10,228			9,390
Customer relationships	37,358			37,181			8.7
Less: accumulated amortization	(10,793		)	(11,848		)
Customer relationships, net	26,565			25,333
Convenants not to compete	881			861			2.0
Less: accumulated amortization	(517		)	(597		)
Convenants not to compete, net	364			264
Strategic marketing agreement	6,203			6,203			10.0
Less: accumulated amortization	(293		)	(348		)
Strategic marketing agreement, net	5,910			5,855
Tradenames	843			816			3.9
Less: accumulated amortization	(196		)	(243		)
Tradenames, net	647			573
Trademarks	247			247			Indefinite
Intangible assets, net	$	44,249		$	41,918

The related amortization expense of intangible assets for the three months ended March 31, 2012 and 2013 was $1.4 million and $2.0 million, respectively. The Company’s estimate of future amortization expense for acquired intangible assets that exist at March 31, 2013 is as follows:

(in thousands)
April 1, 2013 to December 31, 2013	$	6,137
2014	7,298
2015	5,938
2016	5,685
2017	5,885
Thereafter	10,728
Total	$	41,671

The following table presents the changes in the carrying amounts of goodwill for the three months ended March 31, 2013.

	Carrying
(in thousands)	Amount

Balance at December 31, 2012	$	65,825
Foreign exchange translation effect	(320		)
Balance at March 31, 2013	$	65,505

- 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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