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Goodwill and Intangible Assets
 12 Months Ended
Mar. 31, 2012
Goodwill and Intangible Assets  
Goodwill and Intangible Assets

5.  Goodwill and Intangible Assets

 

The change in the carrying amount of goodwill was as follows:

 

 

 

March 31,

 

(Dollars in thousands)

 

2012

 

2011

 

Beginning of period

 

$

14,450

 

$

6,265

 

Acquisitions

 

—

 

8,185

 

End of period

 

$

14,450

 

$

14,450

 

 

Other intangible assets are as follows:

 

 

 

March 31, 2012

 

(Dollars in thousands)

 

Carrying
Amount

 

Accumulated
Amortization

 

Net

 

Useful Life
(Years)

 

Intellectual property

 

$

4,091

 

$

542

 

$

3,549

 

10-16

 

Trade names

 

1,596

 

27

 

1,569

 

10

 

Customer relationships

 

8,185

 

3,555

 

4,630

 

7-8.5

 

Non-compete agreements

 

523

 

452

 

71

 

3-5

 

 

 

$

14,395

 

$

4,576

 

$

9,819

 

 

 

 

 

 

March 31, 2011

 

 

 

Carrying
Amount

 

Accumulated
Amortization

 

Net

 

Useful Life
(Years)

 

Intellectual property

 

$

3,916

 

$

161

 

$

3,755

 

10-16

 

Trade names

 

1,946

 

—

 

1,946

 

Indefinite

 

Customer relationships

 

8,185

 

2,506

 

5,679

 

7-8.5

 

Non-compete agreements

 

523

 

419

 

104

 

3-5

 

 

 

$

14,570

 

$

3,086

 

$

11,484

 

 

 

 

The following is estimated amortization expense for years ending March 31:

 

(Dollars in thousands)

 

 

 

2013

 

$

1,660

 

2014

 

1,311

 

2015

 

1,279

 

2016

 

1,259

 

2017

 

1,210

 

 

Amortization expense was $1,490,000 and $1,183,000, respectively, in the years ended March 31, 2012 and 2011.

 

As part of our 2012 annual test, we determined that the carrying value of an indefinite-lived Trade name intangible was greater than its estimated fair value and recorded an impairment loss of $350,000, disclosed separately on the statements of income.  Fair value was estimated using the royalty replacement approach, whereby a royalty percentage is applied to forecasted revenues and discounted to determine the present value.  While gross profit and cash flows have shown improvement since the intangible was acquired, revenues have not grown at the level originally used to value the intangible.  This impairment impacts the Instruments segment.