NOTE 5—OTHER INTANGIBLE ASSETS

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


	Six Months Ended June 30
(in millions)	2013			2012
Gross cost at January 1	$	106.2		$	51.2
Capitalization of internally developed software and other costs		3.8			3.5
Exchange effect		0.0			0.0

Gross cost at June 30		110.0			54.7

Accumulated amortization at January 1		(37.6	)		(33.5	)
Amortization expense		(4.2	)		(2.0	)
Exchange effect		(0.1	)		(0.1	)

Accumulated amortization at June 30		(41.9	)		(35.6	)

Net book amount at June 30	$	68.1		$	19.1

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 complete. 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 six months of 2013 amortization expense of $0.6 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 six months of 2013 amortization expenses of $1.2 million and $0.4 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 June 30, 2013, we had capitalized $13.9 million (2012—$6.6 million) in relation to this internally developed software. No amortization expense was recognized in the first six 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 six months of 2013 amortization expenses of $1.2 million and $0.8 million were recognized in cost of goods sold and selling, general and administrative expenses, respectively (2012—$1.2 million and $0.8 million, respectively).