4. |
Other Intangible Assets |
The following table summarizes information relating to the Company's other intangible assets:
|
|
|
|
|
September 30, 2012 |
|
|
December 31, 2011 |
|
|
|
Useful |
|
|
Gross |
|
|
|
|
|
Net |
|
|
Gross |
|
|
|
|
|
Net |
|
|
|
Lives |
|
|
Carrying |
|
|
Accumulated |
|
|
Carrying |
|
|
Carrying |
|
|
Accumulated |
|
|
Carrying |
|
|
|
(Years) |
|
|
Amount |
|
|
Amortization |
|
|
Amount |
|
|
Amount |
|
|
Amortization |
|
|
Amount |
|
Intangibles (amount in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent |
|
|
8-18 |
|
|
$ |
448 |
|
|
$ |
(98 |
) |
|
$ |
350 |
|
|
$ |
402 |
|
|
$ |
(77 |
) |
|
$ |
325 |
|
Software |
|
|
3 |
|
|
|
382 |
|
|
|
(100 |
) |
|
|
282 |
|
|
|
158 |
|
|
|
(66 |
) |
|
|
92 |
|
Non-compete agreement |
|
|
5 |
|
|
|
265 |
|
|
|
(49 |
) |
|
|
216 |
|
|
|
265 |
|
|
|
(9 |
) |
|
|
256 |
|
Customer contracts |
|
|
0.5 |
|
|
|
565 |
|
|
|
(565 |
) |
|
|
- |
|
|
|
445 |
|
|
|
(144 |
) |
|
|
301 |
|
Customer relationships |
|
|
12 |
|
|
|
3,370 |
|
|
|
(431 |
) |
|
|
2,939 |
|
|
|
3,370 |
|
|
|
(86 |
) |
|
|
3,284 |
|
Total |
|
|
|
|
|
$ |
5,030 |
|
|
$ |
(1,243 |
) |
|
$ |
3,787 |
|
|
$ |
4,640 |
|
|
$ |
(382 |
) |
|
$ |
4,258 |
|
Intangible assets recorded as a result of the acquisition of SEC on October 31, 2011 included a non-compete agreement, customer relationships, customer contracts, and software ($4,000) which were recorded at fair market value of approximately $4,204,000 (see "Note 3 – Business Acquisition" for the purchase price allocation of SEC). The intangible assets acquired are amortized on a straight-line basis over their useful lives with the exception of customer relationships which are being amortized using an accelerated method. |
The following table summarizes the expected amortization over the next five years for our definite-lived intangible assets noted above and includes the only one definite-lived permit, which is at our DSSI facility. This permit of approximately $545,000 was capitalized in 2009 in connection with the authorization issued by the U.S. EPA to commercially store and dispose of radioactive PCBs. This permit is being amortized over a ten year period in accordance with its estimated useful life. |
|
|
|
Amount |
|
Year |
|
|
(In thousands) |
|
|
|
|
|
|
2012 |
(remaining) |
|
$ |
159 |
|
2013 |
|
|
|
575 |
|
2014 |
|
|
|
519 |
|
2015 |
|
|
|
471 |
|
2016 |
|
|
|
429 |
|
|
|
|
$ |
2,153 |
|
Amortization expense relating to intangible assets for the Company was ($111,000) and $901,000 for the three and nine months ended September 30, 2012, respectively, and $49,000 and $113,000 for the three and nine months ended September 30, 2011, respectively. The negative amortization expense for the quarter ended September 30, 2012 was attributed to the re-evaluation of a customer contract acquired as part of the SEC acquisition. The increase in amortization expense for the nine months ended September 30, 2012 was attributed primarily to amortization of intangible assets acquired related to the SEC acquisition.
|