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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2011
Goodwill and Intangible Assets [Abstract] |
Goodwill and Intangible Assets |
7. | Goodwill and Intangible Assets
For purposes of performing our goodwill impairment analysis, we have identified our reporting units as North America; Latin America; Europe, Middle East, Africa (“EMEA”) and Asia Pacific. As of December 31, 2011, the Company performed an analysis of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. Based on the Company's analysis of qualitative factors, the Company determined that is was not necessary to perform the two-step goodwill impairment test for any of its reporting units. Each of our reporting units were tested for impairment as of December 31, 2010 and based upon our analysis, the estimated fair values of our reporting units substantially exceeded their carrying amounts. During the first quarter of 2009, the price of our stock decreased to the point that our carrying amount exceeded our market capitalization for a period of time leading up to and including March 31, 2009. Accordingly, we performed interim impairment tests as of March 31, 2009 on our goodwill and other intangible assets. As quoted market prices are not available for our reporting units, estimated fair value was determined using an average weighting of both projected discounted future cash flows and the use of comparative market multiples. The use of comparative market multiples (the market approach) compares us to other comparable companies based on valuation multiples to arrive at a fair value. The use of projected discounted future cash flows (discounted cash flow approach) is based on management's assumptions including forecasted revenues and margins, estimated capital expenditures, depreciation, amortization and discount rates. Changes in economic and operating conditions that occur after the annual impairment analysis or an interim impairment analysis, and that impact these assumptions, may result in a future goodwill impairment charge. Upon performing the first step test for the interim impairment analysis in 2009, the estimated fair values of the North America, Latin America, and Asia Pacific reporting units exceeded their carrying amounts. However, we determined that the fair value of the EMEA reporting unit was below its carrying amount, indicating a potential goodwill impairment existed. Having determined that the goodwill of the EMEA reporting unit was potentially impaired, we performed Step 2 of the goodwill impairment analysis which involved calculating the implied fair value of its goodwill by allocating the fair value of the reporting unit to all of its assets and liabilities other than goodwill (including both recognized and unrecognized intangible assets) and comparing the residual value to the carrying amount of goodwill. As of March 31, 2009, as a result of our interim impairment tests, we recorded an impairment loss related to our EMEA reporting unit, which totaled $43,363, representing 100% of the goodwill for this reporting unit. There was no impairment of our other intangible assets. The income tax benefit associated with the 2009 first quarter goodwill impairment was $1,074 which relates to the tax deductible portion of the goodwill impairment. The changes in the carrying amount of Goodwill are as follows:
|  |  |  |  | Accumulated |  |  |  |  |
|  |  |  |  | Impairment |  |  |  |  |
|  | Goodwill |  |  | Losses |  |  | Total |
Balance as of December 31, 2010 |  | $ | 67,008 |  |  | $ | (46,585 | ) |  | $ | 20,423 |
Additions |  |  | 688 |  |  |  | - |  |  |  | 688 |
Foreign currency fluctuations |  |  | (1,173 | ) |  |  | 365 |  |  |  | (808 | )
Balance as of December 31, 2011 |  | $ | 66,523 |  |  | $ | (46,220 | ) |  | $ | 20,303 |
Balance as of December 31, 2009 |  | $ | 68,706 |  |  | $ | (48,525 | ) |  | $ | 20,181 |
Adjustments |  |  | (117 | ) |  |  | - |  |  |  | (117 | )
Foreign currency fluctuations |  |  | (1,581 | ) |  |  | 1,940 |  |  |  | 359 |
Balance as of December 31, 2010 |  | $ | 67,008 |  |  | $ | (46,585 | ) |  | $ | 20,423 |
The balances of acquired Intangible Assets, excluding Goodwill, as of December 31, are as follows:
|  | Customer Lists |  |  |  |  |  |  |  |  |  |
|  | and |  |  | Trade |  |  |  |  |  |  |
|  | Service Contracts |  |  | Name |  |  | Technology |  |  | Total |
Balance as of December 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |
Original cost |  | $ | 25,987 |  |  | $ | 4,583 |  |  | $ | 7,136 |  |  | $ | 37,706 |
Accumulated amortization |  |  | (10,387 | ) |  |  | (1,209 | ) |  |  | (2,352 | ) |  |  | (13,948 | )
Carrying amount |  | $ | 15,600 |  |  | $ | 3,374 |  |  | $ | 4,784 |  |  | $ | 23,758 |
Weighted-average original life (in years) |  |  | 14 |  |  |  | 14 |  |  |  | 13 |  |  |  |  |
Balance as of December 31, 2010 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Original cost |  | $ | 26,662 |  |  | $ | 4,709 |  |  | $ | 3,441 |  |  | $ | 34,812 |
Accumulated amortization |  |  | (7,344 | ) |  |  | (901 | ) |  |  | (1,228 | ) |  |  | (9,473 | )
Carrying amount |  | $ | 19,318 |  |  | $ | 3,808 |  |  | $ | 2,213 |  |  | $ | 25,339 |
Weighted-average original life (in years) |  |  | 14 |  |  |  | 14 |  |  |  | 11 |  |  |  |  |
The additions to Goodwill during 2011 were a result of our Water Star acquisition as well as recording a portion of the Shanghai ShenTan Mechanical and Electrical Equipment Co. Ltd. (“Shanghai ShenTan”) earn-out. The net reduction of Goodwill during 2010 was a result of recording a portion of the Shanghai ShenTan earn-out, offset by the finalization of the valuation of the customer list acquired with the Applied Cleansing acquisition. The Applied Cleansing customer list has a useful life of 8 years. During the second quarter of 2011, we impaired customer lists and technology Intangible Assets totaling $1,805 related to the obsolescence of the two Hofmans outdoor city cleaning products in Europe. This impairment charge is included within Selling and Administrative Expense in the 2011 Consolidated Statement of Earnings. Amortization expense on Intangible Assets was $3,330, $3,166 and $3,120 for the years ended December 31, 2011, 2010 and 2009, respectively. Estimated aggregate amortization expense based on the current carrying amount of amortizable Intangible Assets for each of the five succeeding years is as follows:
2012 |  | $ | 2,459 |
2013 |  |  | 2,343 |
2014 |  |  | 2,281 |
2015 |  |  | 2,269 |
2016 |  |  | 2,229 |
Thereafter |  |  | 12,177 |
Total |  | $ | 23,758 |

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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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