Download Annual Report, 2.44 MB - Xyratex

XYRATEX LTDNOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)(U.S. dollars and amounts in thousands, except per share data, unless otherwise stated)4. Acquisition and purchase of intangible assets (Continued)Intangible assets are being amortized on a straight line basis for their remaining lives as follows:Patents and core technology ...................................Supplier contracts ..........................................Assembled workforce ........................................The intangible assets are expected to be deductible for tax purposes.6 years3 years4 yearsIdentified intangible assetsIdentified intangible assets balances are summarized as follows:November 30, 2005AccumulatedGross Assets Amortization Net AssetsExisting technology .................. $11,300 $1,906 $ 9,394Core technology .................... 3,400 508 2,892Non-competition agreements ........... 1,000 282 718Order backlog ..................... 2,100 1,209 891Patents and core technology ........... 1,487 131 1,356Supplier contracts ................... 39 16 23Assembled workforce ................ 124 39 85Customer relationships ............... 4,300 289 4,011Total ......................... $23,750 $4,380 $19,370On the basis that no impairment charges are required, the Company expects to recordamortization of these intangible assets in its statements of operations as follows:Amortization2006 .................................................. $4,7392007 .................................................. 4,3252008 .................................................. 3,1402009 .................................................. 2,6792010 .................................................. 2,386Thereafter ............................................. $2,101F-21