Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill and Other Intangible Assets [Abstract]

Note 3 – Goodwill and Other Intangible Assets

Goodwill represents the excess of the cost of a business acquired over the fair value of the related net assets at the date of acquisition. Goodwill is not amortized but rather tested for impairment at least annually. The required annual impairment test of goodwill is completed as of the first day of the fourth fiscal quarter of each year. These impairment tests must be performed more frequently whenever events or changes in circumstances indicate that the asset might be impaired. The Company’s business segments (see Note 15) represent its reporting units for goodwill impairment testing purposes.

Vishay recorded goodwill impairment charges aggregating $1,696,174 in the year ended December 31, 2008. Subsequent to the goodwill impairment charges recorded in 2008, there was no remaining goodwill recorded on the consolidated balance sheet until the acquisition of the resistor businesses of Huntington Electric on September 28, 2011. After allocating the purchase price to the assets acquired and liabilities assumed based on their fair values at the date of acquisition, the Company recorded goodwill of $9,051 related to this acquisition. All of the goodwill related to this acquisition was allocated to the Resistors & Inductors business segment.

Other intangible assets are as follows:


	December 31,
	2011			2010

Intangible Assets Subject to Amortization
(Definite-lived):
Patents and acquired technology	$	111,428		$	111,637
Capitalized software		53,721			51,087
Customer relationships		57,723			52,863
Tradenames		36,762			36,375
Non-competition agreements		1,000			-
		260,634			251,962
Accumulated amortization:
Patents and acquired technology		(89,379	)		(83,493	)
Capitalized software		(47,836	)		(43,583	)
Customer relationships		(26,174	)		(21,081	)
Tradenames		(13,615	)		(10,334	)
Non-competition agreements		(62	)		-
		(177,066	)		(158,491	)
Net Intangible Assets Subject to Amortization		83,568			93,471

Intangible Assets Not Subject to Amortization
(Indefinite-lived):
Tradenames		20,359			20,359
	$	103,927		$	113,830

Net intangible assets of $15,371 were transferred to VPG on July 6, 2010. Amortization expense (excluding capitalized software) was $14,684, $19,817, and $22,731, for the years ended December 31, 2011, 2010, and 2009, respectively. VPG accounted for $1,466 and $3,019 of amortization expense for the years ended December 31, 2010 and 2009, respectively.

Estimated annual amortization expense of intangible assets on the balance sheet at December 31, 2011 for each of the next five years is as follows:

2012	$12,595
2013	12,492
2014	12,492
2015	12,492
2016	10,765

- 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.

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