Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 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:

	June 30, 2013					December 31, 2012
($ in thousands)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Customer lists/relationships	$	62,014	$	(27,208	)	$	62,014	$	(25,084	)
Patents		10,319		(10,319	)		10,319		(10,319	)
Other intangibles		11,460		(1,809	)		11,280		(672	)
Total definite lived intangible assets		83,793		(39,336	)		83,613		(36,075	)
In-process research & development		640		—			820		—
Goodwill		35,156		—			35,156		—
Total	$	119,589	$	(39,336	)	$	119,589	$	(36,075	)

During the six months ended June 30, 2013, CTS retrospectively adjusted the 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 were 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.

There was $40.0 million and $4.5 million of net intangible assets excluding goodwill and in-process research and development at June 30, 2013 related to the Components and Sensor segment and the EMS segment, respectively. The in-process research and development intangible at June 30, 2013 and December 31, 2012 relates to the Components and Sensors Segment. There was $34.7 million and $0.5 million of goodwill at June 30, 2013 and December 31, 2012, related to the Components and Sensors segment and to the EMS segment, respectively.

CTS recorded amortization expense of $1.3 million and $3.0 million during the three and six-month periods ended June 30, 2013, respectively. CTS recorded amortization expense of $0.7 million and $1.5 million during the three and six-month periods ended July 1, 2012, respectively. The weighted average remaining amortization period for the amortizable intangible assets is 11.5 years. The weighted average remaining amortization period for customer lists/relationships is 12.3 years and for the other intangibles is 8.9 years. CTS estimates remaining amortization expense of $2.6 million in 2013, $4.8 million in 2014, $4.6 million in 2015, $4.3 million in 2016, $4.2 million in 2017 and $24.0 million thereafter.