Intangible Assets

In November 2011, the Company acquired 100% of the outstanding shares of Nanda. In accounting for the transaction, the Company recorded $10.5 million of specifically identified intangible assets. See Note 3 - Acquisitions.

On December 9, 2010, Nanometrics purchased three patents from RTM. The company paid RTM $0.4 million cash for these patents. Nanometrics also incurred approximately $62,000 of legal expenses, which were capitalized and included with the cost of the patents acquired. The primary patent expires on March 31, 2018. Nanometrics will amortize the patents on a straight line basis over a period of 7 years and 3 months (from January 2011 through March 2018).

Intangible assets with an indefinite life are evaluated annually for impairment or whenever events or circumstances occur which indicate that those assets might be impaired. As a result of the Company’s acquisition of Soluris Inc. during 2006, the Company acquired a trademark with a value of $0.4 million with an indefinite life. During 2008, the Company determined the trademark no longer had an indefinite life, a remaining life of five years was assigned, and the Company began amortizing the asset. Also, during 2008, the Company added $1.5 million of finite-lived intangible assets consisting of developed technology of $1.3 million and backlog of $0.2 million through its acquisition of Tevet.

Finite-lived intangible assets are recorded at cost, less accumulated amortization. Finite-lived intangible assets as of December 31, 2011 and January 1, 2011 consist of the following (in thousands):



	Carrying amount as of January 1, 2011		Additions during 2011 at cost		Carrying amount as of December 31, 2011		Accumulated amortization as of December 31, 2011			Net carrying amount as of December 31, 2011
Developed technology	$	8,681	$	9,200	$	17,881	$	(6,254	)	$	11,627
Customer relationships	8,521		1,040		9,561		(7,961		)	1,600
Brand names	1,927		—		1,927		(1,498		)	429
Patented technology	2,252		—		2,252		(1,856		)	396
In-process research and development	—		330		330		—			330
Trademark	80		—		80		(68		)	12
Total	$	21,461	$	10,570	$	32,031	$	(17,637	)	$	14,394



	Carrying amount as of January 2, 2010 (1)		Additions during 2010 at cost		Carrying amount as of January 1, 2011		Accumulated amortization as of January 1, 2011			Net carrying amount as of January 1, 2011
Developed technology	$	8,681	$	—	$	8,681	$	(4,796	)	$	3,885
Customer relationships	8,521		—		8,521		(7,467		)	1,054
Brand names	1,927		—		1,927		(1,376		)	551
Patented technology	1,790		462		2,252		(1,790		)	462
Trademark	80		—		80		(60		)	20
Total	$	20,999	$	462	$	21,461	$	(15,489	)	$	5,972

(1) The Carrying amount as of January 2, 2010 is presented net of intangible asset impairment charges of approximately $0.5 million and $1.9 million recorded in fiscal years 2010 and 2009, respectively.

The amortization of finite-lived intangibles is computed using the straight-line method except for certain customer relationship assets related to acquisitions in prior years which were computed using an accelerated method. Estimated lives of finite-lived intangibles range from five to ten years. Total amortization expense was $1.7 million, $1.5 million and $1.5 million for fiscal 2011, 2010, and 2009, respectively.

The estimated future amortization expense as of December 31, 2011 is as follows (in thousands):




Fiscal Years	Amounts
2012	$	2,992
2013	3,302
2014	2,946
2015	2,500
2016	2,209
Thereafter	445
Total amortization	$	14,394