Intangible Assets Other Than Goodwill

6 Months Ended

Jun. 30, 2011

Intangible Assets Other Than Goodwill

Intangible Assets Other Than Goodwill

6. INTANGIBLE ASSETS OTHER THAN GOODWILL

The major components of intangible assets are:

	June 30,			December 31,
	2011			2010
Non-amortizable intangible assets:
Trademarks	$	690,912		$	759,070
Impairment charge		0			(131,849	)
Total		690,912			627,221
Amortizable intangible assets:
Customer relationships		9,656			815
Less accumulated amortization		(1,441	)		(694	)
Total		8,215			121
Total intangible assets	$	699,127		$	627,342

Management considers trademarks associated with high or market-leader brand recognition within their market segments to be indefinite-lived assets, based on the length of time they have existed, the comparatively high volumes sold and their general market positions relative to other products in their respective market segments.

Based on this and together with the evidence provided by analyses of vodka products life cycles, market studies, competitive and environmental trends, we believe that these trademarks will continue to generate cash flows for an indefinite period of time, and that the useful lives of these trademarks are therefore indefinite. In accordance with ASC Topic 350-30, intangible assets with an indefinite life are not amortized but are reviewed at least annually for impairment. These trademarks include Soplica, Zubrowka, Absolwent, Royal, Parliament, Green Mark, Zhuravli, Kauffman Vodka, Urozhay and the trademark rights to Bols Vodka in Poland, Hungary and Russia.

The change in the recorded book value of trademarks between June 30, 2011 and December 31, 2010 resulted mainly from the acquisition of the Kauffman Vodka trademark for $17.5 million and foreign exchange translation differences of $46.2 million caused by appreciation of Polish zloty and Russian ruble against the U.S. dollar.