Note 7 - Intangible Assets

9 Months Ended

Feb. 28, 2013

Intangible Assets Disclosure [Text Block]

7. INTANGIBLE ASSETS

Intangible assets consist of the following (in thousands):

			February 28, 2013							May 31, 2012
	Weighted Average Life (years)		Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
			(in thousands)							(in thousands)
Intangible assets subject to amortization:
Customer relationships		20	$	450,525	$	(34,728	)	$	415,797	$	449,665	$	(17,799	)	$	431,866
Existing technology / trade names		11		266,000		(37,350	)		228,650		266,000		(19,076	)		246,924
Corporate trade name		15		40,000		(4,088	)		35,912		40,000		(2,088	)		37,912
Below market leasehold interests		5		860		(264	)		596		860		(135	)		725
Deferred licensing costs		6		99		(17	)		82		99		(4	)		95
Total amortizable assets				757,484		(76,447	)		681,037		756,624		(39,102	)		717,522
Intangible assets not subject to amortization:
In-process research and development				18,000		-			18,000		18,000		-			18,000
Total non-amortizable assets				18,000		-			18,000		18,000		-			18,000
Intangible assets, net			$	775,484	$	(76,447	)	$	699,037	$	774,624	$	(39,102	)	$	735,522

A portion of the Company’s customer list is held in functional currencies outside the U.S.  Therefore, the stated cost as well as the accumulated amortization is affected by the fluctuation in foreign currency exchange rates.

Amortization of intangible assets was $12.4 million and $12.4 million for the quarters ended February 28, 2013 and February 29, 2012, respectively. Amortization of intangible assets was $37.2 million in the nine month period ended February 28, 2013 compared with $26.5 million in the Successor period from August 20, 2011 to February 29, 2012 and $0.9 million in the Predecessor period from June 1, 2011 to August 19, 2011.

The following table presents an estimate of amortization expense for each of the next five fiscal years (in thousands):

Year Ending May 31:
2013	$	49,767
2014		49,767
2015		49,767
2016		49,767
2017		49,476