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INTANGIBLE ASSETS
 9 Months Ended
Sep. 30, 2013
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 as required by FASB's ASC. The Company has no intangible assets having indefinite lives.
We have the following intangible assets as of September 30, 2013:
 
 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Net
Carrying
Value
Amortizable intangible assets
 
(in thousands)
Venture Metals, LLC trade name
 
$
730

 
$
(474
)
 
$
256

Non-compete agreements
 
310

 
(202
)
 
108

Venture Metals, LLC customer list
 
4,800

 
(1,560
)
 
3,240

Total intangible assets
 
$
5,840

 
$
(2,236
)
 
$
3,604


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 $526.3 thousand and $562.5 thousand for the nine month periods ended September 30, 2013 and 2012, respectively. Pursuant to a legal settlement, we canceled $144.7 thousand of our non-compete agreements balance effective February 28, 2013. A gain of $625.3 thousand was recorded as a result of this settlement.
Due to the continued decline in market-dependent variables, including prices of stainless steel materials, management determined the Company should discontinue production of stainless steel blends in the fourth quarter of 2013. With this change in strategy, the Company will record an impairment loss of approximately $3.5 million for the remaining value of the intangible assets related to the stainless steel blend business in that quarter. These assets are included in the Recycling segment.
As of September 30, 2013, we expect amortization expense and impairment loss for these assets for the remainder of the year and thereafter to be as follows:
 
 
Balance -
 
 
 
 
 
 
 
 
Year
 
Beginning of Year
 
Cancellation of Intangible Asset
 
Amortization
 
Impairment Loss
 
Balance - End of Year
 
 
(in thousands)
2013
 
$4,275
 
$(145)
 
$(641)
 
$(3,489)
 
$—
Thereafter
 
—
 
—
 
—
 
—
 
—