Annual report pursuant to Section 13 and 15(d)

CUSTOMER CONTRACTS AND OTHER INTANGIBLE ASSETS

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CUSTOMER CONTRACTS AND OTHER INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2012
CUSTOMER CONTRACTS AND OTHER INTANGIBLE ASSETS  
CUSTOMER CONTRACTS AND OTHER INTANGIBLE ASSETS

9.     CUSTOMER CONTRACTS AND OTHER INTANGIBLE ASSETS

Customer contracts are amortized on a straight-line basis over the period of the agreements, as straight-line best approximates the ratio that current revenues bear to the total of current and anticipated revenues, based on the estimated lives of the assets. In accordance with FASB ASC Topic 350 "Intangibles—Goodwill and other", the expected lives of customer contracts were reviewed, and it was determined that customer contracts should be amortized over a life of 8 to 20 years dependent upon customer type. The carrying amount and accumulated amortization for customer contracts were as follows:

 
   
 
 
  December 31,  
(in thousands)
  2012
  2011
 
   

Customer contracts

  $ 217,384   $ 227,281  

Less: Accumulated amortization

    (103,984 )   (118,933 )
       

Customer contracts, net

  $ 113,400   $ 108,348  
   

The carrying amount of customer contracts in foreign countries was $5.4 million as of December 31, 2012 and $6.3 million as of December 31, 2011.

Other intangible assets include non-compete agreements, patents and finite lived and indefinite lived trade names. Non-compete agreements are amortized on a straight-line basis over periods ranging from 3 to 20 years and patents are amortized on a straight-line basis over 15 years. The carrying amount and accumulated amortization for other intangible assets were as follows:

 
   
 
 
  December 31,  
(in thousands)
  2012
  2011
 
   

Other intangible assets

  $ 35,515   $ 41,702  

Less: Accumulated amortization

    (7,126 )   (12,524 )
       

Other intangible assets, net

  $ 28,389   $ 29,178  
   

Included in the table above are trademarks and tradenames of $15.3 million and $15.7 million at December 31, 2012 and 2011, respectively. Also included in the table above are non-amortizable, indefinite lived intangible assets $12.6 million and $14.4 million at December 31, 2012 and 2011, respectively.

 
   
 
 
  December 31,  
(in thousands)
  2012
  2011
 
   

Customer contracts, net

  $ 113,400   $ 108,348  

Other intangible assets, net

    28,389     29,178  
       

Customer Contracts and other intangible assets, net

  $ 141,789   $ 137,526  
   

Total amortization expense was approximately $23.4 million in 2012, $22.4 million in 2011 and $20.4 million in 2010.

Estimated amortization expense for the existing carrying amount of customer contracts and other intangible assets for each of the five succeeding fiscal years are as follows:

(in thousands)
   
 
   

2013

  $ 24,478  

2014

  $ 21,497  

2015

  $ 18,846  

2016

  $ 16,080  

2017

  $ 14,444