Note 7 - Goodwill

9 Months Ended

Sep. 29, 2012

7. Goodwill

Goodwill represents the premium paid over the fair value of the net tangible and intangible assets acquired in business combinations. The Company is required to assess the carrying value of its reporting units that contain goodwill at least on an annual basis. The Company has the option to first assess qualitative factors to determine whether it is necessary to perform a two-step impairment test. If the Company believes, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than the carrying value, the quantitative impairment test is required. The Company formally assesses these qualitative factors, and if necessary, conducts its annual goodwill impairment test as of the last day of the Company’s fiscal November each year or if indicators of impairment exist. The Company has determined that the qualitative factors that exist do not suggest that an impairment of goodwill exists.

The changes in the carrying amount of goodwill for the thirty-nine week period ended September 29, 2012 are as follows:

	Information Technology		Engineering		Specialty Health Care		Total
Balance as of December 31, 2011	$	5,516	$	100	$	1,703	$	7,319

Goodwill acquired		-		1,296		-		1,296

Contingent consideration recorded		-		930		-		930

Balance as of September 29, 2012	$	5,516	$	2,326	$	1,703	$	9,545