Intangibles

9 Months Ended

Sep. 30, 2011

5. Intangibles

Intangibles, net of amortization expense and other charges, consist of the following assets acquired in connection with previous business combinations (in thousands):

	September 30, 2011		December 31, 2010
Core technologies	$	12,413	$	14,995
Developed and contract technologies	3,422		4,489
Customer contracts, lists and relationships	2,128		2,747
Other intangibles	309		368
Trade names	2,898		2,898
In-process research and development	1,240		2,300
	$	22,410	$	27,797

In connection with the acquisition of CRi, $2.3 million of the intangible assets acquired relate to in-process research and development (“IPR&D”) assets. These IPR&D assets represent projects that were in existence as of the acquisition date. Caliper assesses the status of the projects on a quarterly basis to determine whether they have been completed or abandoned. In the second quarter of 2011, Caliper abandoned certain of these projects, resulting in a $1.1 million impairment charge which is recorded within amortization of intangible assets within the accompanying consolidated statements of operations. The abandonment of these projects represented an indicator of impairment, which prompted Caliper to perform a recoverability test during the second quarter of 2011. Caliper used a multi-period excess earnings approach which measures fair value by discounting expected future cash flows attributable to a single intangible asset. Based on information learned by Caliper during the second quarter as our research and analysis of the projects progressed, there were changes in the estimated costs to be incurred to complete the projects. As such, the results of the recoverability test showed that there was no value to the abandoned projects.

CALIPER LIFE SCIENCES INC 10-Q