Note 5 - Intangible Assets

6 Months Ended

Jun. 30, 2011

Intangible Assets Disclosure [Text Block]

5. Intangible Assets

Intangible assets consist of the following (in thousands):

	June 30, 2011			December 31, 2010
Goodwill	$	4,611		$	5,150
Trademarks		12,784			15,742
Less accumulated amortization		(2,680	)		(2,680	)
Total intangible assets	$	14,715		$	18,212

The change in the carrying amount of goodwill and intangible assets during the six and three months ended June 30, 2011 was as follows (in thousands):

	Six Months Ended June, 30 2011			Three Months Ended June, 30 2011
Beginning Balance	$	18,212		$	18,352
Impairment losses – goodwill		(539	)		(539	)
Impairment losses – trademarks		(3,150	)		(3,150	)
Foreign currency translation effects		192			52
Ending Balance	$	14,715		$	14,715

During the second quarter of 2011, after a review of sales, backlog, cash flows and marketing strategy, the Company determined that its investment in the Form Athletics goodwill and trademarks was impaired. As a result, the Company evaluated the future discounted net cash flows and recognized impairment losses of $3,689,000, which represents a 100% impairment of the Form Athletics goodwill and trademarks, for the six and three months ended June 30, 2011.

The Company performed the annual reassessment and impairment test as of October 1, 2010 of its Palladium intangible assets related to trademarks and determined there was no impairment of its intangible assets.  The Company does not believe that a triggering event has occurred through June 30, 2011 to require an updated impairment test.  See the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010.