Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets



(Dollars in thousands)	September 30, 2015						December 31, 2014
	Gross Carrying Amount (1)		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount (1)		Accumulated Amortization		Net Carrying Amount
Trademarks and patents	$	2,537	$	615	$	1,922	$	1,046	$	364	$	682
Technology	47,423		18,731		28,692		33,942		15,958		17,984
Covenant-not-to-compete	935		891		44		1,016		823		193
Customer relationships	50,282		7,781		42,501		19,123		4,406		14,717
Total definite lived intangible assets	101,177		28,018		73,159		55,127		21,551		33,576
Indefinite lived intangible assets	4,418		—		4,418		4,764		—		4,764
Total intangible assets	$	105,595	$	28,018	$	77,577	$	59,891	$	21,551	$	38,340

(1) Gross carrying amounts and accumulated amortization may differ from prior periods due to foreign exchange rate fluctuations.

On January 22, 2015, we acquired Arlon. For further detail on the goodwill and intangible assets recorded on the acquisition, see Note 5 - "Acquisition".

Amortization expense for the quarter and nine months ended September 30, 2015 was approximately $2.8 million and $8.0 million, respectively. Amortization expense was $1.5 million and $4.7 million for the quarter and nine months ended September 30, 2014, respectively. The estimated annual future amortization expense is $2.8 million, $10.4 million, $10.0 million, $9.5 million and $9.0 million for the remainder of 2015, 2016, 2017, 2018 and 2019, respectively.

The weighted average amortization period as of September 30, 2015, by intangible asset class, is presented in the table below:



Intangible Asset Class		Weighted Average Amortization Period (Years)
Trademarks and patents		4.5
Technology		5.0
Covenant not-to-compete		1.0
Customer relationships		6.3
Total definite lived intangible assets		5.7

The indefinite-lived trademark intangible assets were acquired from the acquisition of Curamik. These assets are assessed for impairment annually or when changes in circumstances indicated that the carrying values may be recoverable. The definite-lived intangibles are amortized using a fair value methodology that is based on the projected economic use of the related underlying asset.

Goodwill

The changes in the carrying amount of goodwill for the period ending September 30, 2015, by segment, were as follows:



(Dollars in thousands)	Advanced Connectivity Solutions		Elastomeric Material Solutions			Power Electronics Solutions			Other		Total
December 31, 2014	$	—	$	23,565		$	72,438		$	2,224	$	98,227
Foreign currency translation adjustment	—		(1,301		)	(5,659		)	—		(6,960		)
Arlon acquisition	52,444		33,893			—			—		86,337
September 30, 2015	$	52,444	$	56,157		$	66,779		$	2,224	$	177,604

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details