Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill and Other Intangible Assets [Abstract]

Note 4 - Goodwill and Other Intangible Assets

We recognized other intangible asset impairment charges of $2.8 million during 2009. Such charges are non-cash and did not affect our liquidity, tangible equity or debt covenant ratios.

The annual impairment test as of November 30, 2011, passed, and we were not required to complete step two. The following represents the carrying amount of goodwill, on a reportable segment basis, for the period February 26, 2010 to December 31, 2011:

	Wheels			Gunite		Brillion Iron Works		Fabco Automotive			Total
Balance as of February 26, 2010	$	97,127		$	62,839	$	4,414	$	13,192		$	177,572
Balance as of December 31, 2010	$	97,127		$	62,839	$	4,414	$	13,192		$	177,572
Additions		1,061			-		-		-			1,061
Matters related to fresh-start accounting		(1,905	)		-		-		-			(1,905	)
Sale of assets		-			-		-		(13,192	)		(13,192	)
Balance as of December 31, 2011	$	96,283		$	62,839	$	4,414	$	-		$	163,536

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 December 31, 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 year ended December 31, 2009, and for the period January 1, 2010 to February 26, 2010 by reportable segment for the Predecessor Company, are as follows:

	Gunite			Brillion Farm			Brillion Iron Works			Imperial Group			Bostrom Seating			Fabco Automotive			Corporate			Total
Balance as of January 1, 2009	$	30,988		$	3,949		$	18,362		$	26,060		$	15,317		$	2,246		$	560		$	97,482
Amortization		(1,596	)		(288	)		(934	)		(1,154	)		(668	)		(95	)		(187	)		(4,922	)
Impairment losses		-			-			(1,900	)		(930	)		(500	)		-			-			(3,330	)
Balance as of December 31, 2009	$	29,392		$	3,661		$	15,528		$	23,976		$	14,149		$	2,151		$	373		$	89,230
Amortization		(266	)		(48	)		(156	)		(192	)		(112	)		(16	)		(31	)		(821	)
Balance as of February 26, 2010	$	29,126		$	3,613		$	15,372		$	23,784		$	14,037		$	2,135		$	342		$	88,409

At February 26, 2010, the fair values for intangible assets for the Successor Company includes $40,400 of technology which will be amortized over 10 years, $149,900 of customer relationships which will be amortized over 20 years and $34,100 of trade names that are not subject to amortization. None of these items are deductible for income tax purposes.

The changes in the carrying amount of other intangible assets for the period February 26, 2010 to December 31, 2011 by reportable segment for the Successor Company, are as follows:

	Wheels			Gunite			Brillion Farm			Brillion Iron Works			Bostrom Seating			Fabco Automotive			Corporate			Total
Balance as of February 26, 2010	$	149,300		$	43,000		$	3,400		$	3,300		$	1,100		$	24,300		$	-		$	224,400
Sale of assets		-			-			(3,288	)		-			-			-			-			(3,288	)
Amortization		(5,572	)		(1,583	)		(112	)		(138	)		(61	)		(990	)		-			(8,456	)
Balance as of December 31, 2010	$	143,728		$	41,417		$	-		$	3,162		$	1,039		$	23,310		$	-		$	212,656
Additions		3,400			-			-			-			-			-			1,023			4,423
Sale of assets		-			-			-			-			(1,032	)		(22,338	)		-			(23,370	)
Amortization		(8,553	)		(2,449	)		-			(165	)		(7	)		(972	)		(214	)		(12,360	)
Balance as of December 31, 2011	$	138,575		$	38,968		$	-		$	2,997		$	-		$	-		$	809		$	181,349

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


			As of December 31, 2011						As of December 31, 2010
	Weighted Average Useful Lives		Gross Amount		Accumulated Amortization		Carrying Amount		Gross Amount		Accumulated Amortization		Carrying Amount
Goodwill		-	$	163,536	$	-	$	163,536	$	177,572	$	-	$	177,572
Other intangible assets:
Non-compete agreements		2.0	$	1,023	$	214	$	809	$	-	$	-	$	-
Trade names		-		33,200		-		33,200		34,100		-		34,100
Technology		10.0		38,849		7,248		31,601		40,018		2,240		37,778
Customer relationships		19.9		129,093		13,354		115,739		146,994		6,216		140,778
			$	202,165	$	20,816	$	181,349	$	221,112	$	8,456	$	212,656

We estimate that aggregate intangible asset amortization expense for the Company will be approximately $10.8 million in 2012, approximately $10.6 million in 2013 and approximately $10.3 million in 2014 through 2016.

- 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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