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INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
8. INTANGIBLE ASSETS

 

The Company’s indefinite-lived and amortizable intangible assets as recorded in the Consolidated Balance Sheets consisted of the following as of December 31, 2012: 

 

          December 31, 2012  
    Weighted     Gross              
    Average     Carrying     Accumulated        
    Life (Years)     Amount     Amortization     Net  
          (Dollars in thousands)  
Indefinite-lived intangible assets:                                
Goodwill           $ 11,112     $ -     $ 11,112  
Trademarks             34,748       -       34,748  
Total indefinite-lived intangible assets           $ 45,860     $ -     $ 45,860  
                                 
Amortizable intangible assets:                                
Non-compete agreement   5     $ 200     $ (73 )   $ 127  
Customer relationships   15       3,500       (428 )     3,072  
Total amortizable intangible assets           $ 3,700     $ (501 )   $ 3,199  

 

The Company’s indefinite-lived and amortizable intangible assets as recorded in the Consolidated Balance Sheets consisted of the following as of December 31, 2011: 

 

          December 31, 2011  
    Weighted     Gross              
    Average     Carrying     Accumulated        
    Life (Years)     Amount     Amortization     Net  
          (Dollars in thousands)  
Indefinite-lived intangible assets:                                
Goodwill           $ 11,112     $ -     $ 11,112  
Trademarks             34,748       -       34,748  
Total indefinite-lived intangible assets           $ 45,860     $ -     $ 45,860  
                                 
Amortizable intangible assets:                                
Non-compete agreement   5     $ 200     $ (33 )   $ 167  
Customer relationships   15       3,500       (195 )     3,305  
Total amortizable intangible assets           $ 3,700     $ (228 )   $ 3,472  

 

The amortizable intangible assets are included within Other Assets in the Consolidated Balance Sheets. See Note 9.

 

The Company performs an impairment test for goodwill and trademarks on an annual basis and more frequently if an event or changes in circumstances indicate that their carrying values may not be recoverable. Conditions that would trigger an impairment assessment include, but are not limited to, a significant adverse change in legal factors or business climate that could affect the value of the asset.

 

The Company uses a two-step process to test goodwill for impairment. The first step is to compare the applicable reporting unit’s fair value to its carrying value. The Company has determined the applicable reporting unit is its wholesale segment. If the fair value of the wholesale segment is greater than its carrying value, there is no impairment. If the carrying value is greater than the fair value, then the second step must be completed to measure the amount of the impairment, if any. The second step calculates the implied fair value of the goodwill, which is compared to its carrying value. If the implied fair value is less than the carrying value, an impairment loss is recognized equal to the difference. In fiscal 2012 and 2011, there were no impairment charges recorded for the Company’s goodwill.

 

The Company tests its trademarks for impairment by comparing the fair value of each trademark to its related carrying value. Fair value is estimated using a discounted cash flow methodology. In fiscal 2012, 2011 and 2010, there were no impairment charges recorded for the Company’s trademarks.

 

The Company recorded amortization expense for intangible assets of $273,000, $228,000, and $0 in 2012, 2011 and 2010, respectively. Excluding the impact of any future acquisitions, the Company anticipates future amortization expense to be as follows:

 

    Intangible  
(Dollars in thousands)   Assets  
2013   $ 273  
2014     273  
2015     273  
2016     240  
2017     233  
Thereafter     1,907  
Total   $ 3,199