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During 2012, depreciation expense of $47,255 have been charged in cost of goods sold (2011 - $39,578) and $4,790 have been charged to selling and administrative expenses (2011 - $4,655).
Operating income from rental operations for the year ended December 31, 2012 was $26.8 million (2011 - $23.5 million).
6.OTHER ASSETS
December 31 December 31 2012 2011----------------------------------------------------------------------------Equipment sold with guaranteed residual values $ 11,456 $ 7,263Other 1,158 932---------------------------------------------------------------------------- $ 12,614 $ 8,195--------------------------------------------------------------------------------------------------------------------------------------------------------
7.GOODWILL AND INTANGIBLE ASSETS
2012 2011----------------------------------------------------------------------------Goodwill $ 13,450 $ 13,450Intangible assets 13,669 ----------------------------------------------------------------------------- $ 27,119 $ 13,450--------------------------------------------------------------------------------------------------------------------------------------------------------
Toromont acquired from Caterpillar the assets associated with the former coterminous Bucyrus distribution network. Under this agreement, Toromont paid US $13.5 million ($13.7 million). This acquisition was accounted for as a purchase of an identifiable intangible asset. Accordingly, the purchase price was allocated to the intangible asset - distribution network.
The intangible asset - distribution network is considered to have an indefinite useful life as the agreement does not have a termination date. Intangible assets with an indefinite useful life are not amortized but are tested for impairment annually, or when conditions suggest that there may be an impairment.
Goodwill and intangible assets have been allocated to two CGUs or groups of CGUs for impairment testing as follows:
-- Toromont CAT, included within the Equipment Group-- CIMCO, which is also an operating and reportable segment
Carrying amount of goodwill and intangible assets allocated to each of the CGUs
2012 2011----------------------------------------------------------------------------Toromont CAT - Goodwill $ 13,000 $ 13,000CIMCO - Goodwill 450 450----------------------------------------------------------------------------Total Goodwill 13,450 13,450Toromont CAT - Intangible assets 13,669 -----------------------------------------------------------------------------Total Goodwill and Intangible assets $ 27,119 $ 13,450--------------------------------------------------------------------------------------------------------------------------------------------------------
