CPHD » Topics » Intangible Assets

This excerpt taken from the CPHD 10-Q filed May 6, 2009.

3. Intangible Assets

Intangible assets related to licenses are recorded at cost, less accumulated amortization. Intangible assets related to technology and other intangible assets acquired in acquisitions are recorded at fair value at the date of acquisition, less accumulated amortization. Intangible assets are amortized over their estimated useful lives, ranging from 3 to 20 years, on a straight-line basis, except for intangible assets acquired in the acquisitions of Actigenics, Sangtec, Stretton and Alpha-Omega, which are amortized on the basis of economic useful life. Amortization of intangible assets is primarily included in cost of product sales in the accompanying condensed consolidated statements of operations.

 

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The recorded value and accumulated amortization of major classes of intangible assets at March 31, 2009 were as follows (in thousands):

 

     Recorded Value    Accumulated
Amortization
    Net Book
Value

Licenses

   $ 44,507    $ (14,575 )   $ 29,932

Technology acquired in acquisitions

     8,613      (1,185 )     7,428

Other

     3,183      (1,277 )     1,906
                     
   $ 56,303    $ (17,037 )   $ 39,266
                     

Included in licenses was $19.9 million in connection with a patent license agreement with F. Hoffman-La Roche Ltd., effective July 1, 2004. The net book value of this license was $13.9 million and $14.2 million at March 31, 2009 and December 31, 2008, respectively.

Amortization expense of intangible assets was $1.5 million and $1.2 million for the three months ended March 31, 2009 and 2008, respectively. The expected future annual amortization expense of intangible assets recorded on our condensed consolidated balance sheet as of March 31, 2009 is as follows, assuming no impairment charges (in thousands):

 

For the Years Ending December 31,

   Amortization
Expense

2009 (remaining nine months)

   $ 4,591

2010

     6,056

2011

     5,950

2012

     4,650

2013

     3,975

Thereafter

     14,044
      

Total expected future annual amortization

   $ 39,266
      
This excerpt taken from the CPHD 10-Q filed Nov 7, 2008.

3. Intangible Assets

Intangible assets related to licenses are recorded at cost, less accumulated amortization. Intangible assets related to technology acquired in acquisitions and other intangible assets are recorded at fair value at the date of acquisition, less accumulated amortization. Intangible assets are amortized over their estimated useful lives, ranging from 3 to 20 years, on a straight-line basis, except for intangible assets acquired in the acquisition of Sangtec, which are amortized on the basis of economic useful life. Amortization of intangible assets is primarily included in cost of product sales in the accompanying condensed consolidated statements of operations.

 

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The recorded value and accumulated amortization of major classes of intangible assets at September 30, 2008 were as follows (in thousands):

 

     Recorded
Value
   Accumulated
Amortization
   Net Book
Value

Licenses

   $ 40,885    $ 12,769    $ 28,116

Technology acquired in acquisitions

     8,613      755      7,858

Other

     2,170      981      1,189
                    
   $ 51,668    $ 14,505    $ 37,163
                    

Included in licenses was $19.9 million in connection with a patent license agreement with F. Hoffman-La Roche Ltd., effective July 1, 2004. The net book value of this license was $14.5 million and $15.5 million at September 30, 2008 and December 31, 2007, respectively.

Amortization expense of intangible assets was $1.2 million and $1.1 million for the three months ended September 30, 2008 and 2007, respectively, and $3.5 million and $3.1 million for the nine months ended September 30, 2008 and 2007, respectively. The expected future annual amortization expense of intangible assets recorded on our condensed consolidated balance sheet as of September 30, 2008 is as follows, assuming no impairment charges (in thousands):

 

For the Years Ending December 31,

   Amortization
Expense

2008 (remaining three months)

   $ 1,155

2009

     4,927

2010

     4,886

2011

     4,792

2012

     4,686

Thereafter

     16,717
      

Total expected future annual amortization

   $ 37,163
      
This excerpt taken from the CPHD 10-K filed Mar 15, 2007.
Intangible Assets
 
As of December 31, 2006, intangible assets consisted primarily of rights to certain patented technologies licensed from Applera Corporation (“Applera”) and F. Hoffmann-La Roche Ltd. (“Roche”), (see Note 3, “Patent License Agreements and Note 5, “Collaborative Agreements and Contracts”). Amortization of intangible assets is included in cost of product sales in the accompanying consolidated statements of operations.
 
Intangible assets are recorded at cost, less accumulated amortization, and are amortized over their estimated useful lives, ranging from 5 to 20 years, on a straight-line basis. Accumulated amortization of intangible assets was $6.8 million and $4.0 million at December 31, 2006 and 2005, respectively. The Company reviews its intangible assets for impairment under Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”. The Company conducts the impairment review when events or circumstances indicate the carrying value of a long-lived asset may be impaired, by estimating the future undiscounted cash flows to be derived from an asset to assess whether or not a potential impairment exists. If the carrying value exceeds the Company’s estimate of future undiscounted cash flows, an impairment value is calculated as the excess of the carrying value of the asset over the Company’s estimate of its fair market value. Events or circumstances which could trigger an impairment review include a significant adverse change in the business climate, an adverse action or assessment by a regulator, unanticipated competition, significant changes in the Company’s use of acquired assets, the Company’s overall business strategy, or significant negative industry or economic trends. There were no impairment charges recorded in the three year period ended December 31, 2006.
 
Amortization expense of intangible assets was $2.8 million, $2.5 million and $1.5 million for the years ended December 31, 2006, 2005 and 2004, respectively. The expected future annual amortization expense of intangible assets recorded on the Company’s consolidated balance sheet as of December 31, 2006 is as follows, assuming no impairment charges (in thousands):
 
         
    Amortization
 
For the Years Ending December 31,
  Expense  
 
2007
  $ 3,053  
2008
    3,053  
2009
    3,044  
2010
    2,995  
2011
    2,995  
Thereafter
    15,285  
         
Total expected future annual amortization
  $ 30,425  
         
 
This excerpt taken from the CPHD 10-K filed Feb 28, 2005.

Intangible Assets

        As of December 31, 2004, intangible assets consisted primarily of rights to certain patented technologies licensed from Applera Corporation and F. Hoffmann-La Roche Ltd. (Roche), (see Note 4, "Collaborative Agreements and Contracts"). Amortization of intangible assets is included in cost of product sales in the accompanying consolidated statements of operations. The Company reviews its intangible assets for impairment at least annually, or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

        Intangible assets are recorded at cost, less accumulated amortization. Intangible assets are amortized over their estimated useful lives, ranging from 5 to 15 years, on a straight-line basis.

        Amortization expense of intangible assets was $1.5 million and zero for the years ended December 31, 2004 and 2003, respectively. The expected future annual amortization expense of intangible assets recorded on our balance sheet as of December 31, 2004 is as follows (in thousands), assuming no impairment charges:

For the Year Ending December 31,

  Amortization
Expense

2005   $ 2,504
2006     2,504
2007     2,504
2008     2,504
2009     2,495
2010-2020     18,391
   
Total expected future annual amortization   $ 30,902
   
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