Intangible Assets

The following table sets forth changes in the carrying value of intangible assets by reporting segment:



Intangible Assets	As of September 30, 2011							As of September 30, 2010
(in thousands)	Gross Assets		Accumulated Amortization			Net Assets		Gross Assets		Accumulated Amortization			Net Assets
Fiber Optics:
Core Technology	$	13,872	$	(10,862	)	$	3,010	$	15,555	$	(9,275	)	$	6,280
Customer Relations	3,511		(2,071		)	1,440		4,381		(1,644		)	2,737
Patents	4,697		(4,265		)	432		4,725		(4,021		)	704
	22,080		(17,198		)	4,882		24,661		(14,940		)	9,721
Photovoltaics:
Patents	2,279		(1,295		)	984		1,941		(924		)	1,017
Total	$	24,359	$	(18,493	)	$	5,866	$	26,602	$	(15,864	)	$	10,738

Amortization expense related to intangible assets is included in sales, general, and administrative expense on our consolidated statements of operations and comprehensive loss. Based on the carrying amount of the intangible assets as of September 30, 2011, the estimated future amortization expense is as follows:



Estimated Future Amortization Expense
(in thousands)
Fiscal year ended September 30, 2012	$	1,682
Fiscal year ended September 30, 2013	1,366
Fiscal year ended September 30, 2014	1,206
Fiscal year ended September 30, 2015	790
Fiscal year ended September 30, 2016	790
Thereafter	32
Total	$	5,866

Impairment Testing

Impairment tests for our long-lived assets involves comparing fair value to carrying amount. We derive fair value using both the guideline public company valuation method, and on a lesser extent, the discounted cash flow valuation method. The guideline public company valuation method entails a comparison to publicly traded companies within similar industry, product lines, market, growth, margins and risk and is generally based on published data regarding the public companies' stock price, revenue, and earnings. The discounted cash flow valuation method is based on both undiscounted and discounted cash flow models using assumptions about revenue growth rates, appropriate discount rates relative to risk, and estimates of terminal value.

Fiscal 2009:

During the three months ended December 31, 2008, we recorded a non-cash impairment charge totaling $2.0 million related to certain intangible assets that were acquired from Intel Corporation that were abandoned. As of December 31, 2008, due to changes in estimates of future operating performance and cash flows that occurred during the quarter, we tested for impairment of our long-lived assets and other intangible assets and based on that analysis, we determined that no impairment existed.

As of June 30, 2009, we performed an evaluation of our Fiber Optics segment asset group for impairment of long-lived assets. The impairment test was triggered by a determination that it was more likely than not those certain assets would be sold or otherwise disposed of before the end of their previously estimated useful lives. The adverse economic conditions had a significant negative effect on our assessment of fair value of our Fiber Optics segment asset group. The impairment charge primarily resulted from the combined effect of the slowdown in product orders and lower pricing. The determination of fair value involved estimates of future performance that reflected assumptions regarding, among other things, sales volumes and expected margins. As a result of the evaluation, we determined that impairment existed, and a charge of $27.0 million was recorded to write down the long-lived assets to an estimated fair value. Of the total impairment charge, $17.2 million related to plant and equipment and $9.8 million related to intangible assets.

As of September 30, 2009, we performed impairment tests on our long-lived assets based on revised operational and cash flow forecasts. The impairment testing indicated that no impairment existed and that future undiscounted cash flows exceeded carrying value by over 7% for each of the Company's asset groups.

Fiscal 2010:

As of September 30, 2010, we performed an impairment test on certain long-lived assets related to our Fiber Optics segment. The impairment testing indicated that no impairment existed and that future undiscounted cash flows exceeded carrying value.

Fiscal 2011:

As of September 30, 2011, we performed an impairment test of long-lived assets associated with our digital fiber optics product lines. The impairment test was triggered by a change in long-term financial and cash flow forecasts. The changes in financial and cash forecasts as of September 30, 2011 were not a result of the recent flooding in Thailand. The financial impact from this natural disaster will be considered a fiscal 2012 first quarter event. As a result of our evaluation we determined that impairment existed and a charge of $8.0 million was recorded to write down long-lived assets. Of the total impairment charge, $5.3 million related to fixed assets and $2.7 million related to intangible assets. As of September 30, 2011, long-lived assets associated with our digital fiber optics product lines totaled $17.1 million.

As a result of the Thailand flooding, we will test long-lived assets associated with our Fiber Optics segment during the three months ended December 31, 2011. The outcome of this test may result in recording additional impairment expense.