XML 166 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 5 - Goodwill and Intangible Assets
3 Months Ended 12 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill and Intangible Assets Disclosure [Text Block]
5.  GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying amount of goodwill by segment are as follows:

   
Performance
Materials
   
Graphic
Solutions
   
Total
 
                   
Balance, December 31, 2013
  $ 773,713     $ 229,173     $ 1,002,886  
Acquisition adjustments
    3,453       -       3,453  
Foreign currency translation and other
    (4,129 )     (462 )     (4,591 )
Balance, March 31, 2014
  $ 773,037     $ 228,711     $ 1,001,748  

The carrying value of indefinite-lived intangible assets other than goodwill which consist solely of tradenames was $73,400 at both March 31, 2014 and December 31, 2013.

Intangible assets subject to amortization were as follows:

   
March 31, 2014
   
December 31, 2013
 
   
Gross Carrying Amount
   
Accumulated Amortization and Foreign Exchange
   
Net Book
Value
   
Gross Carrying Amount
   
Accumulated Amortization and Foreign Exchange
   
Net Book
Value
 
                                     
Customer lists
  $ 458,400     $ (14,992 )   $ 443,408     $ 458,400     $ (2,290 )   $ 456,110  
Developed technology
    155,000       (6,231 )     148,769       155,000       (1,506 )     153,494  
Total
  $ 613,400     $ (21,223 )   $ 592,177     $ 613,400     $ (3,796 )   $ 609,604  

Customer relationships have useful lives ranging from 8 to 20 years and developed technology have useful lives ranging between 7 to 10 years. This results in weighted average useful lives for customer relationships and developed technology, of approximately 16 years and 10 years, respectively, for an aggregate weighted average useful life of approximately 15 years at March 31, 2014.

For the Successor and Predecessor Periods, the Company recorded amortization expense on intangible assets of $13,317 and $6,735, respectively.

5.  GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying amount of goodwill by segment are as follows:

   
Performance Materials
   
Graphic Solutions
   
Total
 
Predecessor:
                 
Balance, December 31, 2011
  $ 446,101     $ 28,480     $ 474,581  
Addition from acquisitions
    1,940       -       1,940  
Foreign currency translation and other
    (289 )     -       (289 )
Balance, December 31, 2012
    447,752       28,480       476,232  
Foreign currency translation and other
    (4,436 )     -       (4,436 )
Balance, October 31, 2013
  $ 443,316     $ 28,480     $ 471,796  
                         
Successor:
                       
Balance, April 23, 2013 (Inception)
    -       -       -  
Addition from acquisitions
    766,994       226,825       993,819  
Foreign currency translation and other
    6,719       2,348       9,067  
Balance, December 31, 2013
  $ 773,713     $ 229,173     $ 1,002,886  

The Company is in the process of completing its analysis of fair value of the assets acquired related to the MacDermid Acquisition as discussed in Note 2 and anticipates that the final assessment of values will not differ materially from the preliminary assessment.

Accumulated goodwill impairment related to the Performance Materials reporting segment recognized prior to December 31, 2011 (Predecessor) was $57,515. There was no goodwill impairment in either reporting segment in the Successor or Predecessor 2013 Periods or for the years ended December 31, 2012 and 2011, respectively.

The carrying value of indefinite-lived intangible assets other than goodwill was as follows:

   
December 31, 2013
   
December 31, 2012
 
   
Successor
   
Predecessor
 
Tradenames
  $ 73,400     $ 58,417  

Intangible assets subject to amortization were as follows:

   
December 31, 2013
   
December 31, 2012
 
   
Successor
   
Predecessor
 
                                     
   
Gross Carrying Amount
   
Accumulated Amortization and Foreign Exchange
 
Net Book Value
   
Gross Carrying Amount
 
Accumulated Amortization and Foreign Exchange
 
Net Book Value
 
                                     
Customer lists
  $ 458,400     $ (2,290 )   $ 456,110     $ 276,480     $ (119,120 )   $ 157,360  
Developed technology
    155,000       (1,506 )     153,494       83,760       (47,883 )     35,877  
Other
    -       -       -       376       (258 )     118  
Total
  $ 613,400     $ (3,796 )   $ 609,604     $ 360,616     $ (167,261 )   $ 193,355  

Customer relationships have useful lives ranging from 8 to 20 years and developed technology have useful lives ranging between 7 to 10 years. This results in weighted average useful lives for customer relationships and developed technology, of approximately 16 years and 10 years, respectively, for an aggregate weighted average useful life of approximately 15 years at December 31, 2013.

For the Successor and Predecessor 2013 Periods, the Company recorded amortization expense on intangible assets of $8,878 and $22,376, respectively. For the years ended December 31, 2012 and 2011, the Predecessor recorded amortization expense on intangible assets of $27,100 and $28,578, respectively.

Estimated future amortization of intangible assets for each of the next five fiscal years from 2014 through 2018 is $53,266.

For the year ended December 31, 2011, MacDermid recorded $46,438 of impairment charges related to a write down of certain customer list intangible assets in the Performance Materials segment to their estimated fair values. This impairment charge is included in Selling, technical, general and administrative expenses in the Consolidated Statement of Operations.