Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2013

Note 5 — Goodwill and Intangible Assets

The changes in the carrying amount of goodwill for the nine-month period ended September 30, 2013 are as follows:

	Package				Industrial
	Testing		Permeation		Analyzers & Other		Total

Balance as of December 31, 2012	$	5,940,437	$	2,179,071	$	609,930	$	8,729,438
Foreign currency translation	128,963		43,343		—		172,306
Balance as of September 30, 2013	$	6,069,400	$	2,222,414	$	609,930	$	8,901,744

The Company tests goodwill for impairment annually at the reporting unit level, or when events or changes in circumstances indicate the carrying value of the goodwill might exceed its current fair value. The Company will perform its annual impairment test for goodwill in the fourth quarter.

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

	As of September 30, 2013
	Cost		Accumulated Amortization			Net		Estimated Useful Lives
Patents	$	1,525,371	$	(373,292	)	$	1,152,079	10 to 17 years
Trademarks and trade names	4,388,035		(771,765		)	3,616,270		5 to 20 years
Developed technology	7,596,470		(1,266,078		)	6,330,392		9 years
Customer relationships	888,370		(148,062		)	740,308		9 years
Other intangibles	782,718		(25,253		)	757,465		7 years
	$	15,180,964	$	(2,584,450	)	$	12,596,514

	As of December 31, 2012
	Cost		Accumulated Amortization			Net		Estimated Useful Lives
Patents	$	1,485,164	$	(428,409	)	$	1,056,755	10 to 17 years
Trademarks and trade names	4,295,181		(608,861		)	3,686,320		5 to 20 years
Developed technology	7,424,680		(618,723		)	6,805,957		9 years
Customer relationships	868,280		(72,357		)	795,923		9 years
Other intangibles	125,118		(88,459		)	36,659		3.75 years
	$	14,198,423	$	(1,816,809	)	$	12,381,614

Total amortization expense for the three-month periods ended September 30, 2013 and 2012 was $307,176 and $291,375, respectively and $889,480 and $604,025, respectively, for the nine-month periods ended September 30, 2013 and 2012. Projects in process are not amortized until the patent or trademark is granted by the regulatory agency or the asset is ready for use. Estimated amortization expense for the remainder of 2013 and each of the four succeeding fiscal years and thereafter based on the intangible assets as of September 30, 2013 is as follows:

	Estimated Expense
2013	$	347,616
2014	1,258,089
2015	1,253,436
2016	1,236,837
2017	1,204,513
2018 and thereafter	6,102,284

- 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.

+ References+ Details