Intangible Assets and Goodwill

12 Months Ended

Apr. 27, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Prior to our annual goodwill impairment testing at the end of fiscal 2013, we had goodwill of $11,957 for two reporting units in the Interconnect segment and goodwill of $5,276 for two reporting units in the Power Products segment, for a total of $17,233. We performed "step one" of the goodwill test on the four reporting units. Based on this test, we determined that the fair value for three of the reporting units exceeded their carrying values by approximately 16% to 75%, and one reporting unit was less than the carrying value of the net assets. We completed "step two" of the goodwill test for our Eetrex reporting unit which had a fair value less than the carrying value and concluded that goodwill was impaired, and recorded a goodwill impairment charge of $4,326 in our Power Products segment related to these assets. The assumptions used in the valuation of these reporting units were made using management's most recent projections which are considered level 3 inputs in the fair value hierarchy. We continue to monitor the operating results and cash flows of our reporting units on a quarterly basis for signs of possible declines in estimated fair value and goodwill impairment.

The fair value of our trademarks are estimated and compared to the carrying value. We estimate the fair value of the intangible assets using the relief-from-royalty method, which requires assumptions related to projected revenues from our annual operating budgets; assumed royalty rates that could be payable if we did not own the trademarks; and a discount rate which are considered level 3 inputs in the fair value hierarchy. An impairment loss would be recognized if the estimated fair value of the indefinite-lived intangible asset is less than its carrying value. Based on results of our impairment test performed on one reporting unit in the Interconnect segment as of April 27, 2013, no impairment was determined to exist. The fair values of the trademarks tested exceeded their carrying value by approximately 45%.

Goodwill increased $794 in fiscal 2013 related to the purchase of the Hetronic Italy business. See Note 2 for more information.

Goodwill increased $4,326 in fiscal 2011 related to the purchase a controlling interest in Eetrex. See Note 2 for more information. As noted above, the goodwill was subsequently impaired and written-off in fiscal 2013.

The following table shows the roll-forward of goodwill in the financial statements resulting from our acquisition activities for fiscal 2011 and 2013. There was no goodwill activity during fiscal 2012.



	Interconnect		Power Products			Total
Balance as of May 1, 2010	$	11,146	$	950		$	12,096

Attibutable to 2011 acquisitions	—		4,326			4,326
Balance as of April 30, 2011	$	11,146	$	5,276		$	16,422

No activity	—		—			—
Balance as of April 28, 2012	$	11,146	$	5,276		$	16,422

Impairment	—		(4,326		)	(4,326		)
Attibutable to 2013 acquisitions	794		—			794
Foreign currency translation	17		—			17
Balance as of April 27, 2013	$	11,957	$	950		$	12,907

Intangible Assets

The following tables present details of our remaining identifiable intangible assets:



	As of April 27, 2013
	Gross		Accumulated Amortization		Net		Wtd. Avg. Remaining Amortization Periods (Years)
Customer relationships and agreements	$	16,579	$	14,213	$	2,366	10.9
Trade names, patents and technology licenses	25,774		11,779		13,995		10.4
Covenants not to compete	119		14		105		4.4
Total	$	42,472	$	26,006	$	16,466



	As of April 28, 2012
	Gross		Accumulated Amortization		Net		Wtd. Avg. Remaining Amortization Periods (Years)
Customer relationships and agreements	$	14,995	$	13,720	$	1,275	11.7
Trade names, patents and technology licenses	25,774		10,429		15,345		11.8
Covenants not to compete	480		480		—		—
Total	$	41,249	$	24,629	$	16,620

The estimated aggregate amortization expense for each of the five succeeding fiscal years is as follows:



2014		$1,764
2015		1,719
2016		1,537
2017		1,473
2018		1,377

As of April 27, 2013 and April 28, 2012, the trade names, patents and technology licenses include $1,800 of trade names that are not subject to amortization.

- 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.

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