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Other Intangible Assets | 12 Months Ended
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Dec. 31, 2012
Other Intangible Assets [Abstract] |
Other Intangible Assets | Note 7. Other Intangible Assets Other intangible assets comprise the following:
(in millions) |  | 2012 |  |  | 2011 |
Gross cost: |  |  |  |  |  |  |  |
– Ethyl |  | $ | 22.1 |  |  | $ | 22.1 |
– Technology |  |  | 7.1 |  |  |  | 7.1 |
– Customer relationships |  |  | 16.0 |  |  |  | 16.0 |
– Patents |  |  | 2.9 |  |  |  | 2.9 |
– Internally developed software and other costs |  |  | 10.1 |  |  |  | 3.1 |
– Strata |  |  | 48.0 |  |  |  | 0.0 |
|  |  | 106.2 |  |  |  | 51.2 |
Accumulated amortization: |  |  |  |  |  |  |  |
– Ethyl |  |  | (16.6 | ) |  |  | (15.0 | )
– Technology |  |  | (6.0 | ) |  |  | (5.3 | )
– Customer relationships |  |  | (12.7 | ) |  |  | (11.2 | )
– Patents |  |  | (2.3 | ) |  |  | (2.0 | )
– Internally developed software and other costs |  |  | 0.0 |  |  |  | 0.0 |
|  |  | (37.6 | ) |  |  | (33.5 | )
|  | $ | 68.6 |  |  | $ | 17.7 |
Ethyl An intangible asset of $28.4 million was recognized in the second quarter of 2007 in respect of Ethyl Corporation foregoing their entitlement effective April 1, 2007 to a share of the future income stream under the sales and marketing agreements to market and sell TEL. In 2008, contract provisions no longer deemed necessary of $6.3 million were offset against the intangible asset. The amount attributed to the Octane Additives reporting segment was being amortized straight-line to December 31, 2012 and the amount attributed to the Fuel Specialties reporting segment is being amortized straight-line to December 31, 2017. Effective October 1, 2011, the Company extended its estimate for the future life of the Octane Additives segment from December 31, 2012 to December 31, 2013 and therefore prospectively adjusted the amortization period for the amount attributed to the Octane Additives segment. An amortization expense of $1.6 million was recognized in 2012 (2011 – $1.9 million) in cost of goods sold. Technology Following the acquisition of the remaining 50% of Innospec Fuel Specialties LLC on July 8, 2004, the Company recognized an intangible asset of $2.3 million in respect of various technological approvals the business has received from certain military and civilian authorities. The approvals act as a barrier to entry to any potential competitor in the market who would wish to supply these products. An intangible asset of $4.8 million was recognized in respect of a number of specialized manufacturing processes carried out by Innospec Widnes Limited following the acquisition of that entity in August 2004. Both of these assets have an expected life of 10 years and are being amortized on a straight-line basis over this period. No residual value is anticipated. An amortization expense of $0.7 million was recognized in 2012 (2011 – $0.7 million) in cost of goods sold. Customer relationships Following the acquisition of Finetex (now merged into Innospec Active Chemicals LLC) in January 2005, the Company recognized an intangible asset totaling $7.1 million, $4.2 million of which was in relation to customer lists acquired. This asset has an expected life of 13 years and is being amortized on a straight-line basis over this period. No residual value is anticipated. Intangible assets were recognized in 2004 in respect of both the Innospec Fuel Specialties LLC ($9.0 million) and Innospec Widnes Limited ($2.8 million) acquisitions, and relate to ongoing customer relationships. These have an expected life of 10 years and are being amortized on a straight-line basis over that period. No residual value is anticipated. An amortization expense of $1.5 million was recognized in 2012 (2011 – $1.5 million) in selling, general and administrative expenses. Patents Following the acquisition of Finetex, the Company recognized an intangible asset of $2.9 million in respect of patents and trademarks. These have an expected life of 10 years and are being amortized on a straight-line basis over that period. An amortization expense of $0.3 million was recognized in 2012 (2011 – $0.3 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. At December 31, 2012 we had capitalized $10.1 million (2011 – $3.1 million) in relation to this internally developed software. No amortization was recognized in 2012 (2011 – $0.0 million). Strata On December 24, 2012, the Company acquired 100% of the voting equity interests in Strata. The purchase price allocation and related valuation process is not yet complete. We have however provisionally allocated $48.0 million of the purchase price to other intangible assets which we expect to amortize on a straight-line basis to the income statement over a weighted average expected life of 13 years. Final determination of the fair values may result in further adjustments to these estimates. Amortization expense The aggregate other intangible asset amortization expense was $4.1 million, $4.4 million and $4.7 million in 2012, 2011 and 2010, respectively, of which $2.6 million, $2.9 million and $3.1 million, respectively, was recognized in cost of goods sold, and the remainder was recognized in selling, general and administrative expenses. Future amortization expense is estimated to be $10.0 million, $10.5 million and $9.5 million for 2013, 2014, and 2015 respectively.

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- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 44, 45, 46 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16323-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16373-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16265-109275 + Details
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