Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2011

Goodwill and Other Intangible Assets [Abstract]

Note 3 - Goodwill and Other Intangible Assets

Goodwill and any indefinite-lived intangible assets are assessed for impairment annually or more frequently if circumstances indicate impairment may have occurred. We test our impairment annually as of November 30. The analysis of potential impairment of goodwill requires a two-step approach. The first step is the estimation of fair value of each reporting unit. If step one indicates that impairment potentially exists, the second step is performed to measure the amount of impairment, if any. Goodwill impairment exists when the implied fair value of goodwill is less than its carrying value.

The following represents the carrying amount of goodwill, on a reportable segment basis, as of January 1, 2011 and September 30, 2011:

	Wheels			Gunite		Brillion Iron Works		Fabco Automotive			Total
Balance as of January 1, 2011	$	97,127		$	62,839	$	4,414	$	13,192		$	177,572
Additions		9,598			-		-		-			9,598
Matters related to fresh-start accounting		(1,905	)		-		-		-			(1,905	)
Sale of assets		-			-		-		(13,192	)		(13,192	)
Balance as of September 30, 2011	$	104,820		$	62,839	$	4,414	$	-		$	172,073

The addition in Wheels segment goodwill was related to the Camden acquisition. During 2011, we decreased goodwill by $1.9 million, reduced property, plant & equipment by $1.8 million and deferred tax liabilities by $3.7 million for the correction of an immaterial error related to fresh-start accounting. We considered both the qualitative and quantitative effects of this error on the financial statements for the period ending September 30, 2011, as well as the qualitative and quantitative effects of including the error correction in previous periods and concluded that the effects on the financial statements are not material.

The changes in the carrying amount of other intangible assets for the period January 1, 2011 to September 30, 2011 by reportable segment, are as follows:

	Wheels			Gunite			Brillion Iron Works			Bostrom Seating			Fabco Automotive			Corporate			Total
Balance as of January 1, 2011	$	143,728		$	41,417		$	3,162		$	1,039		$	23,310		$	-		$	212,656
Additions		-			-			-			-			-			623			623
Sale of assets		-			-			-			(1,032	)		(22,338	)		-			(23,370	)
Amortization		(6,509	)		(1,897	)		(124	)		(7	)		(972	)		(103	)		(9,612	)
Balance as of September 30, 2011	$	137,219		$	39,520		$	3,038		$	-		$	-		$	520		$	180,297

The summary of goodwill and other intangible assets is as follows:


			As of September 30, 2011						As of December 31, 2010
	Weighted Average Useful Lives		Gross Amount		Accumulated Amortization		Carrying Amount		Gross Amount		Accumulated Amortization		Carrying Amount
Goodwill		-	$	172,073	$	-	$	172,073	$	177,572	$	-	$	177,572
Other intangible assets:
Non-compete agreements		2.0	$	623	$	103	$	520	$	-	$	-	$	-
Trade names		-		33,000		-		33,000		34,100		-		34,100
Technology		10.0		37,649		6,252		31,397		40,018		2,240		37,778
Customer relationships		20.0		127,093		11,713		115,380		146,994		6,216		140,778
			$	198,365	$	18,068	$	180,297	$	221,112	$	8,456	$	212,656

We estimate that our amortization expense for our other intangible assets for 2011 through 2015 will be approximately $12.2 million for 2011 and approximately $10.1 million for each year from 2012 through 2015.

During the last week of the quarter ended September 30, 2011, we experienced a significant decline in our stock price which we determined is a potential indicator of impairment under ASC 350. While our stock price has trended back upwards since September 30, 2011, the impact of this recent event resulted in us preparing a preliminary step one analysis of goodwill and other indefinite lived intangible assets for our reporting units. The preliminary results of this step one analysis indicated that there is no impairment at September 30, 2011. However, we are in the process of completing our annual budget and long-term strategic planning process, including evaluating overall long-term growth rates, industry information and other valuation assumptions. In the event that the fair value of one or more of our reporting units is less than its carrying amount upon completion of our step one analysis, we will perform a step two calculation to determine the amount of impairment, which will be recorded in the quarter ending December 31, 2011. Any such charge is non-cash and would not affect our liquidity, tangible equity or debt covenants.

- 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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