Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2013

Goodwill and Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets

NOTE L – Goodwill and Other Intangible Assets

CTS has the following other intangible assets and goodwill as of:

	March 31, 2013					December 31, 2012
($ in thousands)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Customer lists/relationships	$	62,014	$	(26,015	)	$	70,002	$	(25,084	)
Patents		10,319		(10,319	)		10,319		(10,319	)
Other intangibles		11,280		(1,494	)		1,835		(672	)
Total		83,613		(37,828	)		82,156		(36,075	)
In-process research & development		820		—			820		—
Goodwill		35,156		—			36,350		—
Total other intangible assets and goodwill	$	119,589	$	(37,828	)	$	119,326	$	(36,075	)

During the quarter ended March 31, 2013, CTS retrospectively adjusted to provisional amounts recognized at the acquisition date for the D&R acquisition in December 2012. Customer lists/relationships were reduced by $7,988,000, other intangibles was increased by $9,445,000 and goodwill was reduced by $1,194,000 as a result of additional information provided by CTS’ external valuation consultants. The D&R allocations pertaining to goodwill and other intangible assets will be finalized in 2013. See Note C for further discussion.

Of the net intangible assets excluding goodwill and in-process research and development at March 31, 2013, $41.1 million relates to the Components and Sensors segment and $4.7 million relates to the EMS segment. The in-process research and development intangible at March 31, 2013 relates to the Components and Sensors Segment. Of the goodwill at March 31, 2013, $34.7 million relates to Components and Sensors segment and $0.5 million relates to the EMS segment. Of the goodwill at December 31, 2012, $35.9 relates to Components and Sensors and $0.5 million relates to the EMS segment.

CTS recorded amortization expense of $1.8 million during the three month period ended March 31, 2013 and $0.8 million during the three month period ended April 1, 2012. The weighted average remaining amortization period for the amortizable intangible assets is 11.7 years. The weighted average remaining amortization period for customer lists/relationships is 12.4 years and for the other intangibles is 9.2 years. CTS estimates remaining amortization expense of $3.8 million in 2013, $4.8 million in 2014, $4.6 million in 2015, $4.3 million in 2016, $4.2 million in 2017 and $24.1 million thereafter.