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GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended
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Dec. 31, 2011
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS |
3. | GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill represents the excess of the purchase price and related acquisition costs over the fair value assigned to the net tangible and other intangible assets acquired in a business acquisition. Other intangible assets include patents, product information, license agreements, supply agreements, non-compete agreements and trademarks. Amounts assigned to these intangible assets have been determined by management. Management considered a number of factors in determining the allocations, including valuations and independent appraisals. Trademarks have indefinite lives and are reviewed for impairment on an annual basis. Other intangible assets, excluding trademarks, are being amortized over 1 to 16.5 years. The changes in the carrying value of goodwill classified by reportable operating segment for the years ended December 31, 2011 and 2010 are as follows (dollars in thousands):
|  | Total |  |  | Asia |  |  | North America |  |  | Europe |
Balance at January 1, 2010: |  |  |  |  |  |  |  |  |  |  |  |
Goodwill, gross |  | $ | 28,898 |  |  | $ | 12,875 |  |  | $ | 14,066 |  |  | $ | 1,957 |
Accumulated impairment charges |  |  | (26,941 | ) |  |  | (12,875 | ) |  |  | (14,066 | ) |  |  | - |
Goodwill, net |  |  | 1,957 |  |  |  | - |  |  |  | - |  |  |  | 1,957 |
Goodwill allocation related to acquisition |  |  | 2,349 |  |  |  | - |  |  |  | 1,227 |  |  |  | 1,122 |
Foreign currency translation |  |  | (42 | ) |  |  | - |  |  |  | - |  |  |  | (42 | )
Balance at December 31, 2010: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill, gross |  |  | 31,205 |  |  |  | 12,875 |  |  |  | 15,293 |  |  |  | 3,037 |
Accumulated impairment charges |  |  | (26,941 | ) |  |  | (12,875 | ) |  |  | (14,066 | ) |  |  | - |
Goodwill, net |  |  | 4,264 |  |  |  | - |  |  |  | 1,227 |  |  |  | 3,037 |
Foreign currency translation |  |  | (101 | ) |  |  | - |  |  |  | - |  |  |  | (101 | )
Balance at December 31, 2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill, gross |  |  | 31,104 |  |  |  | 12,875 |  |  |  | 15,293 |  |  |  | 2,936 |
Accumulated impairment charges |  |  | (26,941 | ) |  |  | (12,875 | ) |  |  | (14,066 | ) |  |  | - |
Goodwill, net |  | $ | 4,163 |  |  | $ | - |  |  | $ | 1,227 |  |  | $ | 2,936 |
During the third quarter of 2009, the Company conducted an interim impairment test related to its goodwill by reporting unit as a result of continued market declines. For the interim goodwill impairment assessment performed as of August 31, 2009, the Company's fair value analysis was supported by a weighting of two generally accepted valuation approaches, the income approach and the market approach, as further described in Note 2 of the Company's 2009 Annual Report on Form 10-K. These approaches include numerous assumptions with respect to future circumstances, such as industry and/or local market conditions that might directly impact each of the reporting unit's operations in the future, and are therefore uncertain. These approaches were utilized to develop a range of fair values and a weighted average of these approaches was utilized to determine the best fair value estimate within that range. The interim impairment test related to the Company's goodwill was performed by reporting unit. The valuation test, which heavily weights future cash flow projections, indicated that the goodwill associated with the Company's Asia reporting unit was fully impaired and, as a result, the Company recorded an impairment charge of $12.9 million during the third quarter of 2009. During the year ended December 31, 2010, the Company recorded $2.3 million of additional goodwill in connection with the acquisition of Cinch. The goodwill was allocated by segment as noted in the table above. Management determined that the fair value of the goodwill at December 31, 2011 exceeded its carrying value and that no impairment existed as of that date. The Company tests indefinite-lived intangible assets for impairment using a fair value approach, the relief-from-royalty method (a form of the income approach) . At December 31, 2011, the Company's indefinite-lived intangible assets related solely to the trademarks acquired in the Cinch acquisition in January 2010. Management has concluded that the combined fair value of the Cinch trademarks exceeds the related carrying value at December 31, 2011 and that no impairment existed as of that date. The components of intangible assets other than goodwill are as follows (dollars in thousands):
|  | December 31, 2011 |  |  | December 31, 2010 |
|  | Gross Carrying |  |  | Accumulated |  |  | Net Carrying |  |  | Gross Carrying |  |  | Accumulated |  |  | Net Carrying |
|  | Amount |  |  | Amortization |  |  | Amount |  |  | Amount |  |  | Amortization |  |  | Amount |
Patents and product information |  | $ | 2,719 |  |  | $ | 1,029 |  |  | $ | 1,690 |  |  | $ | 2,724 |  |  | $ | 795 |  |  | $ | 1,929 |
Customer relationships |  |  | 2,541 |  |  |  | 301 |  |  |  | 2,240 |  |  |  | 4,370 |  |  |  | 1,974 |  |  |  | 2,396 |
Non-compete agreements |  |  | 40 |  |  |  | 38 |  |  |  | 2 |  |  |  | 40 |  |  |  | 18 |  |  |  | 22 |
Trademarks |  |  | 6,945 |  |  |  | - |  |  |  | 6,945 |  |  |  | 6,944 |  |  |  | - |  |  |  | 6,944 |
|  | $ | 12,245 |  |  | $ | 1,368 |  |  | $ | 10,877 |  |  | $ | 14,078 |  |  | $ | 2,787 |  |  | $ | 11,291 |
During the year ended December 31, 2010, the Company recorded $11.4 million of various intangible assets in connection with the Cinch acquisition. A listing of intangible assets acquired with Cinch and the related weighted-average lives of those assets is detailed in Note 2 of the Company's 2010 Annual Report on Form 10-K. The Company also wrote off $1.8 million of fully amortized customer relationships during 2011 and $0.3 million of fully amortized patents during 2010. Amortization expense was $0.4 million, $0.6 million and $0.5 million for the years ended December 31, 2011, 2010 and 2009, respectively. Estimated amortization expense for intangible assets for the next five years is as follows (dollars in thousands):
Year Ending |  | Estimated |
December 31, |  | Amortization Expense |
2012 |  | $ | 379 |
2013 |  |  | 377 |
2014 |  |  | 377 |
2015 |  |  | 377 |
2016 |  |  | 377 |

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- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6905597&loc=d3e13816-109267 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6905858&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 42, 43, 44, 45, 46, 47 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6905858&loc=d3e16373-109275 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6905858&loc=d3e16323-109275 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6905597&loc=d3e13854-109267 + Details
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