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Goodwill and Intangible Assets
 12 Months Ended
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