Note 5 - Intangible Assets

9 Months Ended

Sep. 30, 2011

Intangible Assets Disclosure [Text Block]

5.   Intangible Assets

Intangible assets consist of the following (in thousands):

	September 30, 2011			December 31, 2010
Goodwill	$	4,611		$	5,150
Trademarks		12,644			15,742
Less accumulated amortization		(2,680	)		(2,680	)
Total intangible assets	$	14,575		$	18,212

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

	Nine Months Ended September 30, 2011			Three Months Ended September 30, 2011
Beginning Balance	$	18,212		$	14,715
Impairment losses – goodwill		(539	)		0
Impairment losses – trademarks		(3,150	)		0
Foreign currency translation effects		52			(140	)
Ending Balance	$	14,575		$	14,575

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 nine months ended September 30, 2011.  During the third quarter of 2011, the Company decided to no longer pursue operating the Form Athletics line of business (see Note 13).

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 September 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.