Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2012

Goodwill and Intangible Assets [Abstract]

Goodwill and Intangible Assets

(7) Goodwill and Intangible Assets

The changes in carrying amounts of goodwill during the nine months ended September 30, 2012 were as follows:

	Metals Segment			Plastics Segment		Total
Balance as of January 1, 2012
Goodwill	$	117,145		$	12,973	$	130,118
Accumulated impairment losses		(60,217	)		—		(60,217	)
Balance as of January 1, 2012		56,928			12,973		69,901
Currency valuation		615			—		615
Balance as of September 30, 2012
Goodwill		117,760			12,973		130,733
Accumulated impairment losses		(60,217	)		—		(60,217	)
Balance as of September 30, 2012	$	57,543		$	12,973	$	70,516

The Company’s annual test for goodwill impairment is completed as of January 1 ^st each year. Based on the January 1, 2012 test, the Company determined that there was no impairment of goodwill. The Company’s year-to-date operating results, among other factors, are considered in determining whether it is more-likely-than-not that the fair value for any reporting unit has declined below its carrying value, which would require the Company to perform an interim goodwill impairment test. Another recession or economic declines in specific industries could change management’s expectations of future financial results and/or key valuation assumptions used in determining the fair-value of its reporting units which could result in a test for the impairment of goodwill prior to the Company’s annual testing date of January 1 ^st.

On December 15, 2011, the Company acquired 100 percent of the outstanding common shares of Tube Supply. The aggregate purchase price was $184,385. There were no changes in the purchase price allocation during the nine months ended September 30, 2012. The purchase price allocation is preliminary and it is subject to change upon the finalization of items such as the determination of fair values of pre-acquisition contingencies, finalization of the working capital adjustments and certain tax related matters.

The following summarizes the components of intangible assets:

	September 30, 2012				December 31, 2011
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer relationships	$	119,373	$	42,764	$	118,567	$	34,960
Non-compete agreements		3,888		3,152		3,888		2,902
Trade name		8,326		993		8,249		410
Developed technology		1,400		369		1,400		19
Total	$	132,987	$	47,278	$	132,104	$	38,291

The weighted-average amortization period for the intangible assets is 10.8 years, 11.3 years for customer relationships, 9.4 years for trade names, 3 years for non-compete agreements and 3 years for developed technology. Substantially all of the Company’s intangible assets were acquired as part of the acquisitions of Transtar on September 5, 2006 and Tube Supply on December 15, 2011. For the three-month periods ended September 30, 2012 and 2011, amortization expense was $2,961 and $1,657, respectively. For the nine-month periods ended September 30, 2012 and 2011, amortization expense was $8,880 and $4,979, respectively.

The following is a summary of the estimated annual amortization expense for 2012 and each of the next 4 years:

2012	$	11,777
2013		11,777
2014		11,743
2015		10,977
2016		10,977