Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Other Intangible Assets

(6) Goodwill and Other Intangible Assets

Goodwill

As of December 31, 2012 and 2011, goodwill amounted to $8,729,438 and $3,119,246, respectively. See Note 2 for discussion of the valuation techniques used to assess the fair value of the intangible assets at the acquisition date. The Company tests goodwill for impairment annually at the reporting unit level using a fair value approach, in accordance with the provisions of ASC 350, Goodwill and Other. The Company completed its annual impairment tests during the fourth quarter 2012 and 2011 and determined there was no impairment.

During April 2012, the Company acquired Dansensor which resulted in goodwill of approximately $5.6 million (see Note 2). Additionally, during fiscal 2012, the Company reorganized its business which thereby changed the reporting segments. To properly reflect the change in goodwill by reporting segment, goodwill has been allocated to the reporting segments as though the reorganization had occurred at the beginning of the year. The changes in the carrying amount of goodwill for the year ended December 31, 2012 is as follows:

	Package Testing			Permeation		Industrial Analyzers & Other		Total

Balance as of December 31, 2011	$	366,655		$	2,142,661	$	609,930	$	3,119,246
Acquisition		5,639,837			—		—		5,639,837
Foreign currency translation		(66,055	)		36,410		—		(29,645	)

Balance as of December 31, 2012	$	5,940,437		$	2,179,071	$	609,930	$	8,729,438

Other Intangible Assets

Other intangible assets (all of which are being amortized except projects in process) are as follows:

	As of December 31, 2012

	Cost		Accumulated Amortization			Net
Patents	$	1,485,164	$	(428,409	)	$	1,056,755
Trademarks and trade names		4,295,181		(608,861	)		3,686,320
Developed technology		7,424,680		(618,723	)		6,805,957
Customer relationships		868,280		(72,357	)		795,923
Other intangibles		125,118		(88,459	)		36,659

	$	14,198,423	$	(1,816,809	)	$	12,381,614

	As of December 31, 2011

	Cost		Accumulated Amortization			Net
Patents	$	1,283,761	$	(447,158	)	$	836,603
Trademarks and trade names		516,069		(443,136	)		72,933
Other intangibles		80,000		(80,000	)		—

	$	1,879,830	$	(970,294	)	$	909,536

Amortization expense was $907,176, $86,125 and $90,531 in 2012, 2011 and 2010, respectively.

Estimated amortization expense for the fiscal years 2013 to 2017, and 2018 and thereafter is $1,186,988, $1,176,564, $1,171,912, $1,155,313, $1,143,822 and $5,946,618, respectively.

- 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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