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Goodwill And Intangible Assets
6 Months Ended
Jun. 30, 2011
Goodwill And Intangible Assets  
Goodwill And Intangible Assets

5. Goodwill and Intangible Assets

 

$ in thousands    Six months ended
June 30, 2011
     Year ended
December 31, 2010
 

Goodwill / Tradename

   Goodwill      Tradename      Goodwill      Tradename  

Beginning balance

   $ 14,713       $ 3,225       $ 14,591       $ 3,209   

Foreign currency adjustments

     63         8         122         16   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 14,776       $ 3,233       $ 14,713       $ 3,225   
  

 

 

    

 

 

    

 

 

    

 

 

 
     As of June 30, 2011      As of December 31, 2010  

Intangible assets – finite life

   Cost      Accum.
Amort.
     Cost      Accum.
Amort
 

Patents

   $ 1,414       $ 1,155       $ 1,414       $ 1,111   

Customer lists

     1,668         1,212         1,661         1,022   

Employment contracts

     250         250         424         400   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 3,332       $ 2,617       $ 3,499       $ 2,533   
  

 

 

    

 

 

    

 

 

    

 

 

 

We complete an annual (or more often if circumstances require) impairment test for our indefinite life intangible assets. In performing these assessments, the carrying value of the asset is considered impaired if the fair value is less than the carrying value of the asset. If this occurs, an impairment charge is recorded for the amount by which the carrying value of the asset exceeds its fair value.

Also as required by current accounting rules, we complete an annual (or more often if circumstances require) impairment test for our goodwill. In performing these assessments, the carrying value of each reporting unit is compared to its estimated fair value, as calculated by the discounted present value of cash flow method. If the estimated fair value of a reporting unit is less than its carrying value, an impairment charge is recorded for the amount by which the carrying value of the goodwill exceeds its calculated implied fair value. The Company's fourth quarter 2010 annual evaluation of goodwill did not indicate an impairment of the goodwill for any of the Company's reporting units.

The fair value measurement method used in the Company's impairment analysis utilizes a number of significant unobservable inputs or Level 3 assumptions. These assumptions include, among others, projections of our future operating results, the implied fair value of these assets using an income approach by preparing a discounted cash flow analysis and other subjective assumptions.

Amortization of finite life intangibles for the three months ended June 30, 2011 and 2010 was $112,000 and $125,000, respectively and for the six months ended June 30, 2011 and 2010 was $223,000 and $260,000 respectively. Over the next five years amortization expense for these finite life intangible assets will be $171,000 for the remainder of 2011, $316,000 in 2012, $130,000 in 2013, $69,000 in 2014 and $6,000 in 2015.