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Other Intangibles
12 Months Ended
Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Disclosure [Text Block]
Other Intangibles

All of the Company’s other intangible assets have been assigned definite lives and continue to be amortized over their useful lives, except for $31,944,000 related to trademarks, which have indefinite lives. The changes in intangible balances reflected on the balance sheet from December 31, 2012 to December 31, 2013 were the result of foreign currency translation and amortization except for intangible write-downs, noted below, which totaled $1,523,000.

The Company’s intangibles consist of the following (in thousands):

 
December 31, 2013
 
December 31, 2012
 
Historical
Cost
 
Accumulated
Amortization
 
Historical
Cost
 
Accumulated
Amortization
Customer Lists
$
92,637

 
$
65,158

 
$
93,572

 
$
58,447

Trademarks
31,944

 

 
31,280

 

License agreements
1,393

 
1,393

 
3,212

 
3,212

Developed Technology
9,916

 
6,390

 
9,650

 
5,588

Patents
6,107

 
5,568

 
6,060

 
5,234

Other
7,407

 
8,311

 
7,571

 
7,212

 
$
149,404

 
$
86,820

 
$
151,345

 
$
79,693



Amortization expense related to other intangibles was $10,567,000, $10,747,000 and $10,542,000 for 2013, 2012 and 2011, respectively. Estimated amortization expense for each of the next five years is expected to be $8,431,000 for 2014, $7,041,000 in 2015, $5,706,000 in 2016, $2,262,000 in 2017 and $2,262,000 in 2018. Amortized intangibles are being amortized on a straight-line basis over remaining lives from 1 to 11 years with the majority of the intangibles being amortized over an average remaining life of approximately 6 years.

In accordance with ASC 350, Intangibles—Goodwill and Other, the Company reviews intangibles for impairment. The Company's intangible assets consist of intangible assets with defined lives as well as intangible assets with indefinite lives. Defined-lived intangible assets consist principally of customer lists, developed technology, license agreements, patents and other miscellaneous intangibles such as non-compete agreements. The Company's indefinite lived intangible assets consist entirely of trademarks.
The Company evaluates the carrying value of definite-lived assets whenever events or circumstances indicate possible impairment. Definite-lived assets are determined to be impaired if the future un-discounted cash flows expected to be generated by the asset are less than the carrying value. Actual impairment amounts for definite-lived assets are then calculated using a discounted cash flow calculation. The Company reviews indefinite-lived assets for impairment annually in the fourth quarter of each year and whenever events or circumstances indicate possible impairment. Any impairment amounts for indefinite-lived assets are calculated as the difference between the future discounted cash flows expected to be generated by the asset less than the carrying value for the asset.
During 2013, the Company recognized intangible write-down charges of $1,523,000 comprised of: trademarks with indefinite lives impairment of $568,000, a trademark with a definite life impairment of $123,000, customer list impairment of $442,000 and developed technology impairment of $223,000 all recorded in the IPG segment and a customer list impairment of $167,000 recorded in the North America/HME segment. The after-tax and pre-tax impairment amounts were the same for each of the above impairments except for the indefinite-lived trademark impairments in the IPG segment, which were $496,000 after-tax.
As a result of the Company's 2012 intangible impairment review, the Company recognized intangible write-down charges of $773,000 comprised of: trademark with an indefinite life impairment of $279,000 and developed technology impairment of $398,000 in the IPG segment and a patent impairment of $96,000 in the North America/HME segment. The after-tax and pre-tax impairment amounts were the same for each of the above impairments except for the trademark impairment in the IPG segment, which was $204,000 after-tax.
As a result of the Company's 2011 intangible impairment review, the Company recognized intangible write-down charges of $1,761,000 comprised of: customer list impairment of $625,000 in the IPG segment, customer list impairment of $508,000 in the North America/HME segment, indefinite-lived trademark impairment of $427,000 in the European segment and an intellectual property impairment of $201,000 in the Asia/Pacific segment. The after-tax and pre-tax impairment amounts were the same for each of the above impairments except for the indefinite-lived trademark impairment in the European segment, which was $320,000 after-tax.
The fair value of the customer lists were calculated using an excess earnings method, using a discounted cash flow model. Estimated cash flow returns to the customer relationship were reduced by the cash flows required to satisfy the return requirements of each of the assets employed with the residual cash flow then discounted to value the customer relationship. The fair value of the trademark and developed technology was calculated using a relief from royalty payment methodology which requires applying an estimated market royalty rate to forecasted net sales and discounting the resulting cash flows to determine fair value. The intellectual property intangible asset was impaired as the intellectual property was determined to be no longer viable and is no longer being used.