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INTANGIBLE ASSETS
 9 Months Ended
Sep. 30, 2012
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible Assets
INTANGIBLE ASSETS
Purchased intangible assets are initially recorded at cost and finite life intangible assets are amortized over their useful economic lives on a straight line basis. Intangible assets having indefinite lives and intangible assets that are not yet ready for use are not amortized and are reviewed annually for impairment in accordance with Note 1 – “Summary of Significant Accounting Policies – Fair Value.”
Intangible assets are considered to have indefinite lives when, based on an analysis of all of the relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate cash flows for the Company. The factors considered in making this determination include the existence of contractual rights for unlimited terms and the life cycles of the products and processes that depend on the asset.
We have the following intangible assets as of September 30, 2012:
 
 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Net
Carrying
Value
Amortized intangible assets
 
(in thousands)
Venture Metals, LLC trade name
 
$
730

 
$
(328
)
 
$
402

Non-compete agreements
 
620

 
(279
)
 
341

Venture Metals, LLC customer list
 
4,800

 
(1,080
)
 
3,720

Total intangible assets
 
$
6,150

 
$
(1,687
)
 
$
4,463


We amortize the trade name and non-compete agreements using a method that reflects the pattern in which the economic benefits are consumed or otherwise used over a 5-year life as stated in the agreements. We amortize the customer list on a straight-line basis over a 10-year life as estimated by management. We incurred amortization expense related to these assets of $562.5 thousand for the nine month periods ending September 30, 2012 and 2011.
As of September 30, 2012, we expect amortization expense for these assets for the next five fiscal years and thereafter to be as follows:
 
 
Balance -
 
 
 
Balance -
Year
 
Beginning of Year
 
Amortization
 
End of Year
 
 
(in thousands)
2012
 
$
5,025

 
$
(750
)
 
$
4,275

2013
 
4,275

 
(750
)
 
3,525

2014
 
3,525

 
(750
)
 
2,775

2015
 
2,775

 
(615
)
 
2,160

2016
 
2,160

 
(480
)
 
1,680

Thereafter
 
1,680

 
(1,680
)
 
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