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Other Intangible Assets
 3 Months Ended
Mar. 31, 2013
Goodwill/Other Intangible Assets [Abstract]  
OTHER INTANGIBLE ASSETS

NOTE 5—OTHER INTANGIBLE ASSETS

The following table summarizes the other intangible assets movement year on year:

 

                 
    Three Months Ended
March 31		  

(in millions)

       2013             2012      

Gross cost at January 1

   $ 106.2     $ 51.2  

Capitalization of internally developed software and other costs

     2.1       2.5  

Exchange effect

     0.0       0.0  
   

 

 

    

 

 

  

Gross cost at March 31

     108.3       53.7  
   

 

 

    

 

 

  

Accumulated amortization at January 1

     (37.6 )      (33.5 ) 

Amortization expense

     (2.1 )      (1.0 ) 

Exchange effect

     (0.1 )      0.0  
   

 

 

    

 

 

  

Accumulated amortization at March 31

     (39.8 )      (34.5 ) 
   

 

 

    

 

 

  

Net book amount at March 31

   $ 68.5     $ 19.2  
   

 

 

    

 

 

  

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 largely complete. Final determination of the fair values is unlikely to result in further adjustments to these estimates. We have allocated $48.0 million of the purchase price to other intangible assets which we are amortizing on a straight-line basis to the income statement over a weighted average expected life of 13.1 years. These intangible assets comprise the following:

 

•  

technology ($18.3 million) being amortized straight-line over 16.5 years. In the first three months of 2013 amortization expense of $0.3 million was recognized in cost of goods sold (2012—$0.0 million).

 

•  

customer relationships ($28.2 million) and a non-compete agreement ($1.5 million) being amortized straight-line over 11.5 years and 2.0 years, respectively. In the first three months of 2013 amortization expenses of $0.6 million and $0.2 million were recognized in selling, general and administrative expenses, respectively (2012—$0.0 million and $0.0 million, respectively).

Internally developed software and other costs

We are continuing with the implementation of a new, company-wide, information system platform. At March 31, 2013, we had capitalized $12.2 million (2012—$5.6 million) in relation to this internally developed software. No amortization expense was recognized in the first three months of 2013 (2012—$0.0 million).

Others

The remaining intangible assets of $48.1 million relate to those recognized in the acquisition accounting in respect of technology, customer relationships and patents; and sales and marketing agreements to market and sell tetra ethyl lead (“TEL”). These assets are being amortized straight-line over periods of up to 13 years. In the first three months of 2013 amortization expenses of $0.6 million and $0.4 million were recognized in cost of goods sold and selling, general and administrative expenses, respectively (2012 – $0.6 million and $0.4 million, respectively).