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Note 5 - Goodwill and Intangible Assets | 9 Months Ended
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Sep. 30, 2012
Goodwill and Intangible Assets Disclosure [Text Block] | 5. GOODWILL AND INTANGIBLE ASSETS In accordance with the Financial Accounting Standards Board’s (“FASB”) guidance for goodwill and other intangible assets, we do not amortize goodwill and intangible assets with indefinite lives, but instead measure these assets for impairment at least annually, or when events indicate that impairment exists. We amortize intangible assets that have definite lives so that the economic benefits of the intangible assets are being utilized over their weighted-average estimated useful life. The impairment analysis of goodwill and intangible assets consists first of a review of various qualitative factors of the identified reporting units to determine whether it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, including goodwill. This review 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. If this review leads to the determination that it is more likely than not that the fair value of the reporting unit is greater than its carrying amount, further impairment testing is not required. However, if this review cannot support a conclusion that it is more likely than not that the fair value of the reporting unit is greater than its carrying amount, or at our discretion, quantitative impairment steps are performed. The quantitative impairment test for goodwill consists of a comparison of the fair value of the reporting unit with the carrying amount of the reporting unit to which it is assigned. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of a reporting unit exceeds its fair value, a second step of the goodwill impairment test shall be performed to measure the amount of impairment loss, if any. The impairment test for intangible assets with indefinite lives consists of a comparison of the fair value of the intangible assets with their carrying amounts. If the carrying value of the intangible assets exceeds the fair value, an impairment loss shall be recognized in an amount equal to that excess. We determine the fair value of the reporting unit for goodwill impairment testing based on a discounted cash flow model. We determine the fair value of our intangibles assets with indefinite lives (trademarks) through a royalty relief income valuation approach. We have determined that during the third quarter of 2012 a triggering event, as defined within FASB ASC Topic 350, occurred as a result of the decrease in our market valuation in relation to our shareholder’s equity. As such, we accelerated the review of our goodwill and intangible assets from October 1, 2012 to September 30, 2012. Based upon the results of that review, we have determined that no impairment was necessary for either goodwill or the indefinite-lived intangible assets. a. Goodwill The following table summarizes the goodwill activity by segment for the nine-month periods ended September 30, 2012 and October 2, 2011:
|  | Battery & Energy Products |  |  | Communications Systems |  |  | Discontinued Operations |  |  | Total |
Balance at December 31, 2010 |  | $ | 4,758 |  |  | $ | 11,493 |  |  | $ | 2,025 |  |  | $ | 18,276 |
Effect of foreign currency translations |  |  | 73 |  |  |  | - |  |  |  | - |  |  |  | 73 |
Balance at October 2, 2011 |  |  | 4,831 |  |  |  | 11,493 |  |  |  | 2,025 |  |  |  | 18,349 |
Effect of foreign currency translations |  |  | 7 |  |  |  | - |  |  |  | - |  |  |  | 7 |
Balance at December 31, 2011 |  |  | 4,838 |  |  |  | 11,493 |  |  |  | 2,025 |  |  |  | 18,356 |
Sale of RedBlack Communications |  |  |  |  |  |  |  |  |  |  | (2,025 | ) |  |  | (2,025 | )
Effect of foreign currency translations |  |  | 6 |  |  |  | - |  |  |  | - |  |  |  | 6 |
Balance at September 30, 2012 |  | $ | 4,844 |  |  | $ | 11,493 |  |  | $ | - |  |  | $ | 16,337 |
b. Intangible Assets The composition of intangible assets was:
|  | September 30, 2012 |
|  | Gross Assets |  |  | Accumulated Amortization |  |  | Net |
Trademarks |  | $ | 3,564 |  |  | $ | - |  |  | $ | 3,564 |
Patents and technology |  |  | 4,493 |  |  |  | 3,635 |  |  |  | 858 |
Customer relationships |  |  | 3,995 |  |  |  | 3,308 |  |  |  | 687 |
Distributor relationships |  |  | 379 |  |  |  | 324 |  |  |  | 55 |
Non-compete agreements |  |  | 216 |  |  |  | 216 |  |  |  | - |
Total intangible assets |  | $ | 12,647 |  |  | $ | 7,483 |  |  | $ | 5,164 |
|  | December 31, 2011 |
|  | Gross Assets |  |  | Accumulated 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 |
Amortization expense for intangible assets was $122 and $372 for the three- and nine-month periods ended September 30, 2012, respectively, and $155 and $469 for the three- and nine-month periods ended October 2, 2011, respectively. The change in the cost value of total intangible assets from December 31, 2011 to September 30, 2012 is a result of the effect of foreign currency translations and the disposition of fully amortized intangible assets in conjunction with our sale of RedBlack Communications.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 42, 43, 44, 45, 46, 47 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13854-109267 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267 + Details
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