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Goodwill

12 Months Ended

Dec. 31, 2011

Impairment of Long-Lived Assets/Goodwill [Abstract]

Note 6 — Goodwill

The Company reviews goodwill annually during the fourth quarter, or when events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. Goodwill impairment is deemed to exist if the carrying amount of a reporting unit exceeds its estimated fair value and the goodwill impairment charge, if any, is measured as the difference between the carrying amount of the goodwill as compared to its estimated fair value.

In 2011, the Company reviewed its $28.1 million goodwill balance, all of which relates to the MRO segment, due to a 2001 acquisition. The Company estimated the fair value of the MRO segment using a market approach, which relies on the market value of companies that are engaged in the same line of business and also prepared a discounted cash flow (“DCF”) analysis based on its operating plan to determine a range of fair values. The Company then reconciled the estimated fair value of the MRO segment to the market capitalization of the consolidated Company based on the trading range of the Company’s stock. After reviewing the analysis, the Company concluded that the calculated fair value of the MRO segment exceeded its carrying value by $38 million and, therefore, the goodwill was not considered impaired.

Goodwill activity in 2011 and 2010 was as follows:

		September 30,			September 30,
	(Dollars in thousands) December 31,
	2011			2010
Beginning balance	$	28,307		$	27,957
Translation adjustment		(159	)		350

Ending balance	$	28,148		$	28,307