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Intangible Assets
 3 Months Ended
Mar. 31, 2012
Intangible Assets [Abstract]  
Intangible Assets

NOTE 5—INTANGIBLE ASSETS

 

     Three Months Ended
March 31		  

(in millions)

        2012             2011      

Gross cost at January 1

    $ 51.2      $ 48.1   

Capitalization of internally developed software and other costs

      2.5        0.0   
  

 

 

    

 

 

  

Gross cost at March 31

      53.7        48.1   
  

 

 

    

 

 

  

Accumulated amortization at January 1

      (33.5 )      (29.1 ) 

Amortization expense

      (1.0 )      (1.2 ) 
  

 

 

    

 

 

  

Accumulated amortization at March 31

      (34.5 )      (30.3 ) 
  

 

 

    

 

 

  

Net book amount at March 31

    $ 19.2      $ 17.8   
  

 

 

    

 

 

  

Ethyl

An intangible asset of $22.1 million was previously recognized in respect of Ethyl foregoing their entitlement to a share of the future income stream under the sales and marketing agreements to market and sell TEL. The amount attributed to the Octane Additives reporting segment is being amortized straight-line to December 31, 2013 and the amount attributed to the Fuel Specialties reporting segment is being amortized straight-line to December 31, 2017. An amortization expense of $0.4 million was recognized in the first three months of 2012 (2011—$0.5 million) in cost of goods sold.

Internally developed software and other costs

We are continuing with the implementation of a new, company-wide, information system platform. The platform provider is well established in the market. The implementation will be a phased, risk-managed, site deployment and follow a multistage user acceptance program with the existing platform providing a fallback position. Internally developed software and other costs capitalized at March 31, 2012 were $5.6 million (2011—$0.0 million). No amortization expense was recognized in the first three months of 2012 (2011—$0.0 million).

Others

The remaining intangible assets of $26.0 million relate to those recognized in the acquisition accounting in respect of technology, customer relationships and patents. These assets are being amortized straight-line over periods of up to 13 years. In the first three months of 2012 amortization expenses of $0.2 million and $0.4 million were recognized in cost of goods sold and selling, general and administrative expenses, respectively (2011—$0.3 million and $0.4 million, respectively).