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Goodwill, Intangibles and Loan Acquisition Costs | 3 Months Ended
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Mar. 31, 2012
Goodwill, Intangibles and Loan Acquisition Costs [Abstract] |
Goodwill, Intangibles and Loan Acquisition Costs | Note 7. Goodwill, Intangibles and Loan Acquisition Costs The changes in the carrying amount of goodwill, by reportable segment, are as follows (in thousands):
|  | December 31, 2011 |  |  | Acquisitions |  |  | Impairment |  |  | Foreign currency and other |  |  | March 31, 2012 |
US Nonwovens |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross Goodwill |  | $ | 21,166 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 21,166 |
Accumulated impairment |  |  | (448 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (448 | )
Goodwill |  |  | 20,718 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 20,718 |
Europe Nonwovens |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross Goodwill |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Accumulated impairment |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Goodwill |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Asia Nonwovens |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross Goodwill |  |  | 41,765 |  |  |  | — |  |  |  | — |  |  |  | 36 |  |  |  | 41,801 |
Accumulated impairment |  |  | (7,199 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (7,199 | )
Goodwill |  |  | 34,566 |  |  |  | — |  |  |  | — |  |  |  | 36 |  |  |  | 34,602 |
Latin America Nonwovens |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross Goodwill |  |  | 25,262 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 25,262 |
Accumulated impairment |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Goodwill |  |  | 25,262 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 25,262 |
Oriented Polymers |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross Goodwill |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Accumulated impairment |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Goodwill |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross Goodwill |  |  | 88,193 |  |  |  | — |  |  |  | — |  |  |  | 36 |  |  |  | 88,229 |
Accumulated impairment |  |  | (7,647 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (7,647 | )
Goodwill |  | $ | 80,546 |  |  | $ | — |  |  | $ | — |  |  | $ | 36 |  |  | $ | 80,582 |
Intangible assets consist of the following (in thousands):
|  | March 31, 2012 |  |  | December 31, 2011 |
|  | Gross cost |  |  | Accumulated Amortization |  |  | Net total |  |  | Gross cost |  |  | Accumulated Amortization |  |  | Net total |
Intangible assets with finite lives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Technology |  | $ | 31,900 |  |  | $ | (3,763 | ) |  | $ | 28,137 |  |  | $ | 31,900 |  |  | $ | (2,945 | ) |  | $ | 28,955 |
Customer relationships |  |  | 16,862 |  |  |  | (3,079 | ) |  |  | 13,783 |  |  |  | 16,855 |  |  |  | (2,459 | ) |  |  | 14,396 |
Loan acquisition costs |  |  | 19,252 |  |  |  | (3,216 | ) |  |  | 16,036 |  |  |  | 19,252 |  |  |  | (2,530 | ) |  |  | 16,722 |
Other intangibles, principally patents |  |  | 233 |  |  |  | (22 | ) |  |  | 211 |  |  |  | 192 |  |  |  | (14 | ) |  |  | 178 |
|  |  | 68,247 |  |  |  | (10,080 | ) |  |  | 58,167 |  |  |  | 68,199 |  |  |  | (7,948 | ) |  |  | 60,251 |
Trade names & trademarks with indefinite lives |  |  | 23,500 |  |  |  | — |  |  |  | 23,500 |  |  |  | 23,500 |  |  |  | — |  |  |  | 23,500 |
Total intangible assets, net |  | $ | 91,747 |  |  | $ | (10,080 | ) |  | $ | 81,667 |  |  | $ | 91,699 |  |  | $ | (7,948 | ) |  | $ | 83,751 |
Goodwill and trade names and trademarks represent the Company’s indefinite-lived intangible assets. In accordance with ASC 350, “Intangibles — Goodwill and Other” (“ASC 350”), the Company tests its indefinite-lived intangible assets for impairment on at least annual basis, in the fourth fiscal quarter. The Company performs its annual impairment testing during the fourth quarter of each fiscal year to be alignment with its annual business planning and budgeting process. As a result, the impairment testing will reflect the result of input from business and other operating personnel in the development of the budget. Indefinite-lived intangible assets are also tested for impairment whenever events or changes in circumstances indicate that the assets may be impaired. Each quarter, the Company assesses whether events or changes in circumstances indicate a potential impairment of these assets considering many factors, including significant changes in cash flow or projected cash flow, the condition of assets, and the manner in which assets are used. Indefinite-lived intangible assets are tested by comparing the carrying value and fair value of each indefinite-lived intangible asset, at the reporting unit level, to determine the amount, if any, of impairment. An impairment loss generally is recognized when the carrying amount of the reporting unit’s net assets exceeds the estimated fair value of the reporting unit. The Company has utilized the services of an outside valuation expert to determine the fair value of the Company’s reporting units. The Company completed its last annual impairment testing of goodwill in fourth quarter 2011, and as a result of that analysis, the Company concluded that it had an impairment of goodwill of approximately $7.6 million, which was attributed to four of our twelve reporting units. As of March 31, 2012, based on the Company’s current operating performance as well as future expectations for the business, the Company does not anticipate any material write-downs of its indefinite-lived intangible assets. However, conditions could deteriorate, which could impact the Company’s future cash flow estimates, and there exists the potential for further consolidation and restructuring, either of which could result in an impairment charge that could have a material effect on our consolidated financial statements. Goodwill Goodwill has been calculated at the respective acquisition dates, measured as the excess of the consideration transferred over the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed, all measured with ASC 805. As discussed in Note 4 “Acquisitions”, in conjunction with the Blackstone Acquisition, the Company recognized goodwill of $86.4 million on January 28, 2011. Trade names & trademarks The Company maintains trade names and trademarks for the purpose of conducting its business. The Company has recognized an intangible asset attributable to the trade names and trademarks. Technology The Company has developed proprietary manufacturing know-how. The Company has recognized an intangible asset attributable to the technology manufacturing know-how. The Company has determined that the technology intangible asset has an economic useful life of 10 years and will be amortized over a 10-year period. Customer relationships The Company sells primarily to regional and global manufacturers and distributors, who then sell our products to end consumers. As discussed in Note 4 “Acquisitions”, in conjunction with the Blackstone Acquisition, the Company recognized an intangible asset attributable to the customer relationships. The Company has determined that the customer relationships intangible asset has an economic useful life of 10 years and will be amortized over a 10-year period. Loan acquisition costs The Company incurred $19.3 million of deferred financing costs associated with the aforementioned Senior Secured Notes and ABL Facility. Of the $19.3 million, $16.6 million was attributable to the Senior Secured Notes and the remaining $2.7 million was attributable to the ABL Facility. The Company will amortize the deferred financing costs attributable to the Senior Secured Notes and ABL Facility over an eight and four year period, respectively. Components of amortization expense are shown in the table below (in thousands):
|  | Successor |  |  |  |  | Predecessor |
|  | Three Months Ended March 31, 2012 |  |  | Two Months Ended April 2, 2011 |  |  |  |  | One Month Ended January 28, 2011 |
Amortization of: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Intangibles with finite lives, included in Selling, general and administrative expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Technology |  | $ | 818 |  |  | $ | 553 |  |  |  |  | $ | — |
Customer relationships |  |  | 621 |  |  |  | 453 |  |  |  |  |  | 13 |
Other intangibles, principally patents |  |  | 8 |  |  |  | — |  |  |  |  |  | 42 |
Other intangibles, included in Special charges, net |  |  | — |  |  |  | 23 |  |  |  |  |  | 11 |
Loan acquisition costs, included in Interest expense, net |  |  | 685 |  |  |  | 475 |  |  |  |  |  | 51 |
Total amortization expense |  | $ | 2,132 |  |  | $ | 1,504 |  |  |  |  | $ | 117 |
Aggregate amortization expense for each of the next five fiscal years, including fiscal year 2012, is expected to be as follows: 2012, $8.6 million; 2013, $8.6 million; 2014, $7.2 million; 2015, $6.6 million; 2016, $6.6 million; and thereafter, $10.5 million.

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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 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6905597&loc=d3e13816-109267 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=6905858&loc=d3e16265-109275 Reference 3: 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 4: 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=6905858&loc=d3e16373-109275 Reference 5: 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=6905858&loc=d3e16323-109275 Reference 6: 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=6905597&loc=d3e13854-109267 + Details
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