Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets

Note 7. Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill were as follows:

			Marketing &			Travel &
	Marketing &		Events			Recreation
	Events U.S.		International			Group			Total
	(in thousands)
Balance at January 1, 2011	$	62,686	$	22,455		$	42,300		$	127,441
Business acquisitions		—		—			7,645			7,645
Foreign currency translation adjustments		—		(257	)		(1,135	)		(1,392	)
Balance at December 31, 2011		62,686		22,198			48,810			133,694
Business acquisition		—		—			1,890			1,890
Foreign currency translation adjustments		—		856			1,380			2,236
Balance at December 31, 2012	$	62,686	$	23,054		$	52,080		$	137,820

The following table summarizes goodwill by reporting unit and segment as of December 31:

	2012		2011
	(in thousands)
Marketing & Events Group:
Marketing & Events U.S.	$	62,686	$	62,686
Marketing & Events International:
United Kingdom (Melville GES)		13,894		13,291
GES Canada		9,160		8,907
Total Marketing & Events Group		85,740		84,884
Travel & Recreation Group:
Brewster		44,435		41,165
Glacier Park		4,461		4,461
Alaska Denali Travel		3,184		3,184
Total Travel & Recreation Group		52,080		48,810
Total Goodwill	$	137,820	$	133,694

For impairment testing purposes, the goodwill related to the Marketing & Events U.S. segment is assigned to and tested at the operating segment level. Furthermore, the goodwill related to the Marketing & Events International segment is assigned to and tested based on the segment’s geographical operations. For the Marketing & Events International segment the reporting units are United Kingdom (Melville GES) and Canada. Brewster, Glacier Park and Alaska Denali Travel are considered reporting units for goodwill impairment testing purposes within the Travel & Recreation Group.

As a result of the Company’s most recent analysis performed in October 2012, the excess of the estimated fair values over the carrying values (expressed as a percentage of the carrying amounts) under step one of the impairment test was 126 percent, 67 percent and 34 percent for each of the Marketing & Events Group reporting units in the United States, the United Kingdom (Melville GES) and Canada, respectively. For the Brewster, Glacier Park and Alaska Denali Travel reporting units, the excess of the estimated fair value over the carrying value was 58 percent, 37 percent and 14 percent, respectively, as of the most recent impairment test. Significant reductions in the Company’s expected future revenues, operating income or cash flow forecasts and projections, or an increase in reporting unit cost of capital, could trigger additional impairment testing, which may result in impairment losses.

During 2010, Viad recorded impairment losses of $185,000 related to other intangible assets at the Travel & Recreation Group. As of December 31, 2012, Viad had cumulative goodwill impairment losses of $225.2 million since the adoption of the goodwill impairment testing provisions of ASC Topic 350.

A summary of other intangible assets as of December 31, 2012 is presented below:

	Gross Carrying		Accumulated			Net Carrying
	Value		Amortization			Value
	(in thousands)
Amortized intangible assets:
Customer contracts and relationships	$	3,594	$	(2,384	)	$	1,210
Other		959		(108	)		851
		4,553		(2,492	)		2,061
Unamortized intangible assets:
Business licenses		460		—			460
Total	$	5,013	$	(2,492	)	$	2,521

A summary of other intangible assets as of December 31, 2011 is presented below:

	Gross Carrying		Accumulated			Net Carrying
	Value		Amortization			Value
	(in thousands)
Amortized intangible assets:
Customer contracts and relationships	$	3,122	$	(1,736	)	$	1,386
Other		68		(30	)		38
		3,190		(1,766	)		1,424
Unamortized intangible assets:
Business licenses		460		—			460
Total	$	3,650	$	(1,766	)	$	1,884

Intangible asset amortization expense for 2012, 2011 and 2010 was $693,000, $772,000 and $954,000, respectively. The weighted-average amortization period of customer contracts and relationships and other amortizable intangible assets is approximately 3.7 years and 4.8 years, respectively. Estimated amortization expense related to amortized intangible assets for future years is expected to be as follows:

	(in thousands)
2013	$	712
2014	$	426
2015	$	255
2016	$	199
2017	$	445
Thereafter	$	24