Intangibles (Net Of Amortization) And Goodwill

12 Months Ended

Dec. 31, 2011

Intangibles (Net Of Amortization) And Goodwill [Abstract]

Intangibles (Net Of Amortization) And Goodwill

10.

Intangibles (Net of Amortization) and Goodwill


	December 31
	2011				2010
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizing intangible assets
Formulas and technology	$	91,552	$	69,387	$	91,487	$	64,013
Contracts		16,380		12,139		16,380		9,650
Customer bases		7,050		1,855		7,040		1,276
Trademarks and trade names		1,609		295		1,600		133
Goodwill		5,132				5,091

	$	121,723	$	83,676	$	121,598	$	75,072

Aggregate amortization expense			$	8,604			$	8,767

The goodwill in both 2011 and 2010 relates to the 2010 purchase by Afton of Polartech, as well as the 2008 acquisition by Afton of the North American Fuel Additives Business from GE Water and Process Technologies. The Polartech acquisition resulted in goodwill of $4.2 million, while the GE Water and Process Technologies acquisition resulted in goodwill of approximately $900 thousand. The change in the goodwill amount between 2010 and 2011 is due to foreign currency fluctuations.

The fair value of intangible assets is estimated at the time of acquisition based upon management's assessment, as well as independent third-party appraisals in some cases. All of the intangibles relate to the petroleum additives segment. There is no accumulated goodwill impairment.

Estimated amortization expense for the next five years is expected to be:


• 2012	$	7,421
• 2013	$	7,108
• 2014	$	6,163
• 2015	$	5,790
• 2016	$	1,936

Generally, we amortize the cost of the customer base intangibles by an accelerated method and the cost of the remaining intangible assets by the straight-line method over their estimated economic lives. We generally amortize contracts over 1.5 to 10 years and formulas and technology over 5 to 20 years. Trademarks and trade names are amortized over 10 years.

- 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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