MNTX » Topics » Note 8. Goodwill and Other Intangible Assets

This excerpt taken from the MNTX 10-K filed Mar 25, 2009.

Note 7. Goodwill and Other Intangible Assets

The Company accounts for Other Intangible Assets under the guidance of SFAS No. 142, “Goodwill and Other Intangible Assets”. Under SFAS No. 142, Other Intangible Assets with definite lives are amortized over their estimated useful lives. Indefinite and definite lived intangible assets are subject to annual impairment testing.

The Company capitalizes certain costs related to patent technology. Additionally, a substantial portion of the purchase price related to the Company’s acquisitions has been assigned to patents or unpatented technology, trade name, customer backlog, and customer relationships. The intangibles acquired in acquisitions have been valued using a discounted flow approach. Intangibles, except goodwill, are being amortized over their estimated useful lives.

 

     2008     2007     Useful Lives

Patented and unpatented technology

   $ 10,609     $ 10,684     10-17 years

Amortization

     (2,554 )     (1,501 )  

Customer relationships

     9,580       8,310     10-20 years

Amortization

     (996 )     (554 )  

Trade names and trademarks

     4,957       4,675     25 years-indefinite

Amortization

     (448 )     (262 )  

Customer backlog

     460       474     < 1 year

Amortization

     (460 )     (474 )  
                  

Intangible assets

     21,148       21,352    

Goodwill

     14,452       14,065    
                  

Goodwill and other intangibles

   $ 35,600     $ 35,417    
                  

 

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MANITEX INTERNATIONAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 7. Goodwill and Other Intangible Assets—(Continued)

 

Amortization expense was $1,710, $1,784 and $962 for the periods ended December 31, 2008, 2007 and December 31, 2006, respectively.

Estimated amortization expense for the next five years and subsequent is as follows:

 

2009

   $ 1,793

2010

     1,793

2011

     1,793

2012

     1,793

2013

     1,793

And subsequent

     12,183
      

Total

   $ 21,148
      
This excerpt taken from the MNTX 10-K filed Mar 27, 2008.

Note 8. Goodwill and Other Intangible Assets

The Company accounts for Other Intangible Assets under the guidance of SFAS No. 142, “Goodwill and Other Intangible Assets”. Under SFAS No. 142, Other Intangible Assets with definite lives are amortized over their estimated useful lives. Indefinite and definite lived intangible assets are subject to annual impairment testing.

The Company capitalizes certain costs related to patent technology. Additionally, a substantial portion of the purchase price related to the Company’s acquisitions has been assigned to patents or unpatented technology, trade name, customer backlog, and customer relationships. The intangibles acquired in acquisitions have been valued using a discounted flow approach. Intangibles, except goodwill, are being amortized over their estimated useful lives.

 

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VERI-TEK INTERNATIONAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 8. Goodwill and Other Intangible Assets—(Continued)

 

     2007     2006     Useful Lives

Patented and unpatented technology

   $ 10,684     $ 10,083     10-17 years

Amortization

     (1,501 )     (479 )  

Customer relationships

     8,310       7,348     20 years

Amortization

     (554 )     (172 )  

Trade names and trademarks

     4,675       4,337     25 years

Amortization

     (262 )     (85 )  

Customer Backlog

     474       506     < 1 year

Amortization

     (474 )     (255 )  
                  

Intangible assets

     21,352       21,283    

Goodwill

     14,065       13,305    
                  

Goodwill and other intangibles

   $ 35,417     $ 34,588    
                  

Amortization expense was $1,784 and $962 for the period ended December 31, 2007 and December 31, 2006 respectively. The Company had no continuing operations in 2005 and, therefore, no amortization expense.

As part of the Company’s required annual impairment analysis and its segment disposal review, an impairment charge in the former Testing & Assembly Equipment segment of $3,915 was made relating to patent carrying value as of December 31, 2006 resulting in a $0 carrying value.

Estimated amortization expense for the next five years and subsequent is as follows:

 

2008

   $ 1,671

2009

     1,671

2010

     1,671

2011

     1,671

2012

     1,671

And subsequent

     12,997
      

Total

   $ 21,352
      

 

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VERI-TEK INTERNATIONAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 

EXCERPTS ON THIS PAGE:

10-K
Mar 25, 2009
10-K
Mar 27, 2008
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