Memorex 2013 Annual Report Download - page 68

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 6 — Intangible Assets and Goodwill
Intangible Assets
Intangible assets consist of the following:
Trade
Names Software
Customer
Relationships Other Total
(In millions)
December 31, 2013
Cost .................................... $34.3 $ 58.5 $20.4 $26.3 $139.5
Accumulated amortization .................... (9.2) (53.3) (2.1) (6.3) (70.9)
Intangible assets, net ...................... $25.1 $ 5.2 $18.3 $20.0 $ 68.6
December 31, 2012
Cost .................................... $37.7 $ 58.4 $21.2 $26.8 $144.1
Accumulated amortization .................... (6.0) (52.0) (1.0) (3.2) (62.2)
Intangible assets, net ...................... $31.7 $ 6.4 $20.2 $23.6 $ 81.9
For purposes of long-lived asset impairment assessments, we have generally determined our asset groups to be at the
level of each brand as this is the lowest level for which identifiable cash flows are available and are largely independent of the
cash flows of other assets. Each reporting period, we review our long-lived assets and associated asset groups to determine if
there is a triggering event which would require that we perform an impairment test.
2013 Intangible Asset Analysis
As a part of our annual goodwill impairment test for our Storage Solutions and Mobile Security reporting units (as further
discussed below), we also tested for impairment the long-lived assets, including intangible assets, within the asset groups
included in our Mobile Security and Storage Solutions reporting units. In performing these tests, we compared the carrying
values of these asset groups with their estimated undiscounted future cash flows and determined that the undiscounted cash
flows expected to be generated by the asset groups exceeded their carrying values resulting in no impairment. There were no
interim triggering events that occurred during 2013 that warranted an impairment test to be performed on our long-lived assets
(including intangible assets) other than goodwill.
2012 Intangible Asset Analysis
During the second and third quarters of 2012, as noted below under our 2012 goodwill analysis discussion, we
performed interim goodwill impairment testing for our Mobile Security business (referred to as our Americas-Mobile Security
business in 2012) due to changes in the timing of expected cash flows and lower than expected short-term revenues and
gross margins. We also determined these factors to be an event that warranted interim tests as to whether our intangible
assets associated with the Mobile Security business were impaired. Based on our impairment analysis performed in the
second and third quarters of 2012, we concluded that we did not have an impairment of our intangible assets in the Mobile
Security asset group at those times.
During the fourth quarter of 2012, we determined that the results of our revised internal financial forecast, which was
finalized during the quarter and took into account the expected actions and outcomes associated with the acceleration of our
strategic transformation (as further described in Note 1 — Basis of Presentation.), qualified as a triggering event for
impairment testing. This required the assessment of the recoverability of the long-lived assets (including definite-lived
intangible assets) included in all of our asset groups with the exception of the recent acquisition of Nexsan.
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