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GOODWILL AND OTHER INTANGIBLES
6 Months Ended
Mar. 24, 2012
GOODWILL AND OTHER INTANGIBLES  
GOODWILL AND OTHER INTANGIBLES

F.            GOODWILL AND OTHER INTANGIBLES

 

The Company evaluates possible impairment to goodwill and other intangible assets annually at the end of its fiscal year or whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable.  There were no such events or changes in circumstances in the period presented.  During fiscal 2012, goodwill was reduced by $22,000 reflecting a deferred tax adjustment.

 

“Other intangibles” include customer lists related to the acquisition of Moore-Langen Printing Company, Inc. (“Moore Langen”), which are being amortized over a 10-year period, as well as customer lists and technology related to the acquisition of Highcrest Media LLC (“Highcrest Media”), which are being amortized over a 5-year period.  Amortization expense related to customer lists and technology was approximately $100,000 in the second quarters and $200,000 in the first six months of both fiscal years 2012 and 2011. Annual amortization expense for these items for fiscal years 2012 to 2014 will be $410,000, decreasing to $135,000 and $6,000 in fiscal years 2015 and 2016, respectively.  The Company’s trade names have indefinite lives and as such are not subject to amortization.

 

The following table reflects the components of “Other intangibles”, which are in the Company’s book manufacturing segment, at September 24, 2011 and March 24, 2012.

 

 

 

(000’s Omitted)

 

 

 

Trade
Name

 

Customer
Lists

 

Technology
& Other

 

Total

 

Gross carrying amount

 

$

931

 

$

931

 

$

1,230

 

$

3,092

 

Accumulated amortization

 

 

(369

)

(421

)

(790

)

Balance at September 24, 2011

 

931

 

562

 

809

 

2,302

 

Amortization expense

 

 

(84

)

(121

)

(205

)

Balance at March 24, 2012

 

$

931

 

$

478

 

$

688

 

$

2,097