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Goodwill and Other Intangible Assets
12 Months Ended
Dec. 31, 2012
Goodwill and Other Intangible Assets [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS

2.    GOODWILL AND OTHER INTANGIBLE ASSETS

Under ASC 350, “Intangibles-Goodwill and Other”, goodwill is reviewed for impairment annually or more frequently if certain indicators arise. In addition, the statement requires reassessment of the useful lives of previously recognized intangible assets.

The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill test. The Company does not calculate the fair value of a reporting unit unless it determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount.

ASC 350 prescribes a two-step process for impairment testing of goodwill. During the fourth quarter of 2012 and 2011, the Company performed the annual test for impairment of its reporting units. The Company experienced lower than anticipated sales trends and operating income at one reporting unit. After performing the first step of the impairment test, we determined the carrying amounts of goodwill in our one reporting unit exceeded fair value. As a result, we performed the second step and determined that the goodwill was impaired by approximately $1.9 million. In 2011, the Company recorded goodwill impairment of $0.4 million related to the reduction in fair value of two reporting units. The following table summarizes goodwill activity for the three years ended December 31, 2012 (in millions):

 

                         
    Goodwill     Accumulated
Impairments
    Goodwill, Net  

Balance at January 1, 2010

  $ 18.1     $ (9.5   $ 8.6  

No activity in 2010

    —         —         —    
   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2010

    18.1       (9.5     8.6  
   

 

 

   

 

 

   

 

 

 

Impairments in 2011

    —         (0.4     (0.4
   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2011

    18.1       (9.9     8.2  
   

 

 

   

 

 

   

 

 

 

Impairment in 2012

    —         (1.9     (1.9
   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2012

  $ 18.1     $ (11.8   $ 6.3  
   

 

 

   

 

 

   

 

 

 

 

                                 
    Cost     Accumulated
Amortization
 
    2012     2011     2012     2011  

Amortizable intangible assets: (1)

                               

Customer relationships

  $ 1.4     $ 1.4     $ 0.6     $ 0.5  
   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Amortizable intangible assets are included in “Other Assets”.

 

The Company recorded amortization expense of $0.1 million, $0.1 million and $0.5 million for the years ended December 31, 2012, 2011 and 2010, respectively. The Company expects to record amortization expense for its existing intangible assets of approximately $0.1 million in each year 2013 through 2017, and in total, approximately $0.3 million thereafter.