XML 68 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
Intangible Assets
 6 Months Ended
Jun. 30, 2012
Intangible Assets [Abstract]  
INTANGIBLE ASSETS

NOTE 5 – INTANGIBLE ASSETS

 

 

                 
    Six Months
Ended June 30		  

(in millions)

   2012     2011  

Gross cost at January 1

   $ 51.2     $ 48.1  

Capitalization of internally developed software and other costs

     3.5       0.0  

Exchange effect

     0.0       0.2  
   

 

 

    

 

 

  

Gross cost at June 30

     54.7       48.3  
   

 

 

    

 

 

  

Accumulated amortization at January 1

     (33.5 )      (29.1 ) 

Amortization expense

     (2.0 )      (2.3 ) 

Exchange effect

     (0.1 )      (0.1 ) 
   

 

 

    

 

 

  

Accumulated amortization at June 30

     (35.6 )      (31.5 ) 
   

 

 

    

 

 

  

Net book amount at June 30

   $ 19.1     $ 16.8  
   

 

 

    

 

 

  

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 $0.7 million was recognized in the first half year of 2012 (2011 – $1.0 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 June 30, 2012 were $6.6 million (2011 – $0.0 million). No amortization expense was recognized in the first half year 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 half year of 2012 amortization expenses of $0.5 million and $0.8 million were recognized in cost of goods sold and selling, general and administrative expenses, respectively (2011 – $0.5 million and $0.8 million, respectively).