Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2011

Goodwill and Intangible Assets [Abstract]

5. Goodwill and Intangible Assets

Goodwill

Goodwill balances at June 30, 2011 and December 31, 2010 consisted of $42,908 from the acquisition of D3 Technologies, Inc. (“D3”) in July 2007 and $6,194 from the acquisition of Integrated Technologies, Inc. (“Intec”) in January 2009. These goodwill balances are not deductible for tax purposes.

Intangible Assets

Intangible assets primarily consist of trademarks and customer intangibles primarily resulting from the acquisitions of Intec and D3. The trademark of $4,222 that resulted from the acquisition of D3 was determined to have an indefinite life. The remaining trademark resulted from the acquisition of Intec and has a weighted average estimated useful life of 6.7 years. Customer intangibles have an estimated useful life of 15 to 16 years. Other intangible assets have a weighted average estimated useful life of 4.7 years. The carrying values were as follows:

	June 30,			December 31,
	2011			2010

Trademarks	$	4,582		$	4,582
Customer intangible assets		21,515			21,515
Other		582			2,082
Accumulated amortization		(8,044	)		(7,352	)
Intangible assets, net	$	18,635		$	20,827

Intangibles amortization expense was $496 and $535 for the three months ended June 30, 2011 and 2010, respectively, and $2,192 and $1,073 for the six months ended June 30, 2011 and 2010, respectively. The expense for the six month period ended June 30, 2011 includes $1,163 for the impairment loss discussed in Note 4. Estimated annual amortization expense for the balance of 2011 and the next five years and thereafter is as follows:

Year ending December 31,
	2011	(1)	$	993
	2012			1,975
	2013			1,891
	2014			1,773
	2015			1,678
	2016			1,521
	Thereafter			4,582
	Nonamortizeable			4,222
			$	18,635

(1)	Represents amortization expense for the remainder of 2011.

The carrying value of goodwill and intangible assets with indefinite lives is assessed at least annually, during the fourth quarter, unless a triggering event occurs, and an impairment charge is recorded if appropriate. See Note 4 for discussion of the triggering event that occurred in the first quarter of 2011. There were no triggering events in the second quarter of 2011.

- 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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