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Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2011

Summary of Operations and Significant Accounting Policies and Supplemental Balance Sheet Information [Abstract]

Note 3—Supplemental Balance Sheet Information

a.	Inventory

Inventories are stated at the lower of cost or market with cost determined under the first-in, first-out (FIFO) method. The composition of inventories was:

		September 30,		September 30,
	December 31,
	2011		2010
Raw materials	$	20,097	$	18,250
Work in process		4,770		6,649
Finished products		10,100		8,223

	$	34,967	$	33,122

b.	Property, Plant and Equipment

Major classes of property, plant and equipment consisted of the following:

		September 30,		September 30,
	December 31,
	2011		2010
Land	$	123	$	123
Buildings and Leasehold Improvements		7,000		6,188
Machinery and Equipment		44,770		45,714
Furniture and Fixtures		1,894		1,702
Computer Hardware and Software		3,815		3,652
Construction in Progress		641		582

		58,243		57,961
Less: Accumulated Depreciation		45,655		43,476

	$	12,588	$	14,485

Estimated costs to complete construction in progress as of December 31, 2011 and 2010 was approximately $1,032 and $372, respectively.

Depreciation expense was $3,629, $3,768, and $3,929 for the years ended December 31, 2011, 2010, and 2009, respectively.

c.	Impairment of Goodwill, Intangible Assets and Long-Lived Assets

We applied the provisions of FASB ASC Topic 820, including the early adoption of ASU 2011-08 described in Note 1, during the annual goodwill impairment analysis performed in October 2011. The first, optional, step of the goodwill analysis is to determine if it is more likely than not that the fair value of the identified reporting units exceeds the respective carrying value. This qualitative analysis includes but is not limited to, an evaluation of the macroeconomic, industry or market, and cost factors relevant to the reporting unit as well as financial performance and entity or reporting unit events that may affect the value of the reporting unit. We performed the qualitative assessment on four out of five of the identified reporting units noting that no further testing was indicated. If a reporting unit does not pass or is not subjected to the qualitative assessment, the fair value of the reporting unit is determined when performing the quantitative assessment. The fair value for our one reporting unit subjected to this quantitative test could not be determined using readily available quoted Level 1 inputs or Level 2 inputs that were observable in active markets. Therefore, we used an income approach, to estimate the fair value of the reporting unit, using Level 3 inputs. To estimate the fair value of the reporting unit, we used significant estimates and judgmental factors. The key estimates and factors used in the valuation model included revenue growth rates and profit margins based on internal forecasts, as well as industry and market based terminal growth rates, inputs to the weighted-average cost of capital used to discount future cash flows, and earnings multiples. As a result of the goodwill impairment test performed during 2011, no impairment was indicated. The fair value measurements of the reporting units included unobservable inputs defined above that are classified as Level 3 inputs.

During 2011, we also evaluated our indefinite lived intangible assets for impairment utilizing valuation methods that are classified as Level 3 inputs. Based upon the results of this evaluation, no impairment was indicated.

During 2011, we also evaluated certain fixed assets for impairment utilizing valuation methods that are classified as Level 3 inputs. Based upon the results of this evaluation, no material impairment was indicated.

In the fourth quarter of 2010, we completed an impairment analysis of the goodwill, intangible assets, and other long-lived assets associated with the standby power business included in the Energy Services segment. As a result of this analysis, in connection with the overall decrease in revenues in 2010 compared to 2009 and the declining gross margins over the last two years for the standby power business, we recognized a non-cash impairment charge of $13,793 in the fourth quarter of 2010 to fully write off the goodwill and intangible assets and partially write off certain fixed assets. In conjunction with the non-cash impairment charge, we impaired goodwill of $7,974, trademarks of $1,300, patents and technology of $431, customer relationships of $3,819 and fixed assets of $269.

During 2010, we also recognized non-cash impairments to indefinite lived and amortizable intangible assets. The impairment charges were calculated by determining the fair value of these assets. The fair value measurements were calculated using unobservable inputs including discounted cash flow analyses classified as Level 3 inputs.

We also recognized non-cash impairments of certain fixed assets during the year ended December 31, 2010. The impairment charges were calculated by determining the fair value of the fixed assets using unobservable inputs including market data for transactions involving similar assets. These inputs were classified as Level 3 inputs.

d.	Goodwill

The following table summarizes the goodwill activity by segment for the years ended December 31, 2011 and 2010:

		September 30,		September 30,			September 30,			September 30,
	Battery &		Communications			Discontinued
	Energy Products		Systems			Operations			Total

Balance at December 31, 2009	$	4,687	$	13,701		$	7,048		$	25,436

Adjustments to purchase price allocation		—		(183	)		926			743
Impairment charge		—		—			(7,974	)		(7,974	)
Effect of foreign currency translations		71		—			—			71


Balance at December 31, 2010		4,758		13,518			—			18,276

Effect of foreign currency translations		80		—			—			80


Balance at December 31, 2011	$	4,838	$	13,518		$	—		$	18,356

e.	Other Intangible Assets

The composition of intangible assets was:

		September 30,		September 30,		September 30,
	December 31, 2011
			Accumulated
	Gross Assets		Amortization		Net

Trademarks	$	3,563	$	—	$	3,563
Patents and technology		4,492		3,440		1,052
Customer relationships		3,993		3,143		850
Distributor relationships		378		310		68
Non-compete agreements		396		396		—


Total intangible assets	$	12,822	$	7,289	$	5,533

		September 30,		September 30,		September 30,
	December 31, 2010
			Accumulated
	Gross Assets		Amortization		Net

Trademarks	$	3,559	$	—	$	3,559
Patents and technology		4,474		3,108		1,366
Customer relationships		3,955		2,820		1,135
Distributor relationships		364		274		90
Non-compete agreements		395		395		—


Total intangible assets	$	12,747	$	6,597	$	6,150

Amortization expense for intangible assets was $627, $1,428, and $1,683 for the years ended December 31, 2011, 2010 and 2009, respectively.

The change in the cost value of total intangible assets is a result of the effect of foreign currency translations.