Annual report pursuant to Section 13 and 15(d)

Intangible Assets

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Intangible Assets
12 Months Ended
Dec. 31, 2012
Intangible Assets/Goodwill [Abstract]  
INTANGIBLE ASSETS

NOTE 4 — INTANGIBLE ASSETS

The following table summarizes acquired intangible assets as follows:

 

                                         
    December 31, 2012     December 31, 2011  
(In thousands)   Weighted
Average  Life
    Gross  Carrying
Amount
    Accumulated
Amortization
    Gross  Carrying
Amount
    Accumulated
Amortization
 

Patents

    12 Years     $ 1,271     $ 784     $ 1,271     $ 685  

Trade Names

    10 Years       2,453       162       1,853       7  

Completed and Unpatented Technology

    11 Years       6,377       1,749       5,277       1,242  

Backlog and Customer Relationships

    12 Years       13,085       3,968       9,985       2,452  
           

 

 

   

 

 

   

 

 

   

 

 

 

Total Intangible Assets

    11 Years     $ 23,186     $ 6,663     $ 18,386     $ 4,386  
           

 

 

   

 

 

   

 

 

   

 

 

 

Amortization is computed on the straight-line method for financial reporting purposes. Amortization expense for intangibles was $2.3 million, $0.5 million and $0.6 million for 2012, 2011 and 2010, respectively. The Company has a $0.5 million identifiable asset with an indefinite life included above in Trade Names at December 31, 2012.

Based upon acquired intangible assets at December 31, 2012, amortization expense for each of the next five years is estimated to be:

 

         
(In thousands)      

2013

  $ 1,727  

2014

    1,518  

2015

    1,474  

2016

    1,470  

2017

    1,462  

 

For the Company’s indefinite-lived intangible asset, the impairment test consists of comparing the fair value, determined using the relief from royalty method, with its carrying amount. An impairment loss would be recognized for the carrying amount in excess of its fair value. For the years ended December 31, 2012 and 2010, the Company recorded no impairment charge to any of its indefinite-lived intangible assets. For the year ended December 31, 2011, the Company recorded a $0.1 million impairment charge related to Trade Names assigned to the Company’s Test Systems reporting unit, as of the annual impairment test date of November 1, 2011. Impairment losses are reported on the Impairment Loss line of the Consolidated Statements of Operations.