This excerpt taken from the QGEN 6-K filed Nov 10, 2009.
10. Intangible Assets
The following sets forth the intangible assets by major asset class as of September 30, 2009 and December 31, 2008:
The changes in the carrying amount of goodwill for the nine months ended September 30, 2009 resulted from 2009 acquisitions, foreign currency translation and purchase price adjustments primarily related to tax matters in connection with prior year acquisitions. Additionally, during the third quarter of 2009, an impairment loss of $1.6 million of goodwill from a previous acquisition was recognized following the Companys acquisition of DxS Ltd. in September 2009. The goodwill impairment loss is related to the Germany segment and is recorded in general and administrative, integration and other expenses in the accompanying financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued)
For the three- and nine-month periods ended September 30, 2009, amortization expense on intangible assets totaled approximately $19.1 million and $56.6 million, respectively, compared to $18.5 million and $51.5 million for the three- and nine-month periods ended September 30, 2008, respectively. Amortization of intangibles for the next five years is expected to be approximately:
The Company performs its goodwill impairment tests annually during the fourth quarter of its fiscal year and earlier if an event or circumstance indicates that impairment has occurred. During the third quarter of 2009, the Company recognized a charge of $2.5 million to cost of sales related to the impairment of developed technology. The goodwill and developed technology impairments were triggered by the acquisition of DxS and the discontinuation of an insignificant product line.
This excerpt taken from the QGEN 6-K filed Sep 22, 2009.
The Companys intangible assets are carried at cost less accumulated amortization. In June 2006, the Company acquired a non-exclusive sublicense from Abbott Laboratories for a fee of $3.5 million. The asset acquired is being amortized on a straight-line basis over 7 years. As of June 30, 2007, the net book value of the license was approximately $3.0 million. Future amortization expense for the next five years is expected to approximate $500,000 per year. An additional fee of $5 million will be due upon the first commercial sale of a licensed product under the sublicense agreement.
This excerpt taken from the QGEN 20-F filed Apr 19, 2005.
./. Intangible assets
∑ Equity ratio
For the purpose of computation of the equity ratio, loans of affiliated companies are considered as equity, for which a subordination agreement was concluded to your favor. The equity ratio without consideration of these loans may not fall below 20 per cent.
We assure you that we can give above declaration in accordance with the rights of the Netherlands for the company, and that all resolutions by the responsible committees of the company, necessary for the assumption of these obligations are resolved.
The right of the Federal Republic of Germany applies to this declaration. We agree upon Duesseldorf as place of jurisdiction.
Appendix 4 to the credit contract from July 12th, 2004
Definition of Financial Ratios according to $ 8 of the credit contract.
At any time according to paragraph 8 of the credit contract QIAGEN N.V. must comply on consolidated level with the financial ratios. Qiagen GmbH reports to consortium leader within 14 days after publication of the quarterly results the financial ratios. The auditor of Qiagen N.V. shall testify these ratios.
The financial ratios are calculated and defined as follows:
a) total net debt / net worth £ 0,55
total net debt means:
Issued securities (bonds etc.)
+ short term bank liabilities
+ issued notes
+ long term bank debt
+ long term leasing obligations
+ other interest bearing liabilities
./. cheques, cash, bank
./. receivables from banks