Intangible Assets

12 Months Ended

Dec. 31, 2011

Intangible Assets [Abstract]

Intangible Assets

8. Intangible Assets

The purchase method of accounting for acquisitions requires estimates and assumptions to allocate the purchase price to the fair value of net tangible and intangible assets acquired. The amounts allocated to, and the useful lives estimated for, intangible assets, affect future amortization. There are a number of generally accepted valuation methods used to estimate fair value of intangible assets, and we use primarily a discounted cash flow method, which requires significant management judgment to forecast the future operating results and to estimate the discount factors used in the analysis. An asset is considered impaired if its carrying amount exceeds the value of future net cash flow the asset is expected to generate. If an asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value.

Future changes in events or circumstances, such as an inability to achieve the cash flows determined above, may indicate that the recorded value of the intangible assets will not be recovered through future cash flows and the Company may be required to record an impairment charge for the intangible assets or further modify the period of expected lives for the intangible assets.

The components of the Company's purchased intangible assets as of December 31, 2011 are as follows (in thousands):

	Useful Lives		FY 2011 Annual Amortization		Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Useful Lives Remaining
Customer Relations		15 Years	$	16	$	240	$	28	$	212	13.4 Years
Patents		Varies		180		720		187		533	Varies
			$	196	$	960	$	215	$	745

The components of the Company's purchased intangible assets as of January 1, 2011 are as follows (in thousands):

	Useful Lives		FY 2010 Annual Amortization		Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Useful Lives Remaining
Customer Relations		15 Years	$	12	$	240	$	12	$	228	14.4 Years
Patents		Varies		7		600		7		593	Varies
			$	19	$	840	$	19	$	821

Aggregate amortization expense for the fiscal years 2011 and 2010 were $196 thousand, and $19 thousand, respectively. There were no amortization expense in fiscal year 2009.

Estimated future amortization expense for purchased intangible assets is as follows (in thousands):

Fiscal Year:
2012	$	295
2013		270
2014		16
2015		16
2016		16
Thereafter		132
Total	$	745