Investment In Partnerships

12 Months Ended

Dec. 31, 2011

Investment In Partnerships [Abstract]

17. INVESTMENT IN PARTNERSHIPS

In December 2006, the Company joined the Hearing Instrument Manufacturers Patent Partnership (K/S HIMPP). Members of the partnership include the largest six hearing aid manufacturers as well as several other smaller manufacturers. The purchase price of $1,800 included a 9% equity interest in K/S HIMPP as well as a license agreement that grants the Company access to over 45 US registered patents. The Company accounted for the K/S HIMPP investment using the equity method of accounting for common stock, as the equity interest is deemed to be "more than minor". The unpaid balance of $240 at December 31, 2011 will be paid in one annual principal installment in 2012. The unpaid balance is unsecured and bears interest at an annual rate of 4%, which is payable annually with each installment. The investment in the partnership exceeded underlying net assets by approximately $1,475 at the time of the agreement. Based on the final assessment of the partnership, the Company determined that approximately $345 of the excess of the investment over the underlying partnership net assets relates to underlying patents (amortized on a straight-line basis over ten years). The remaining $1,130 of the excess of the investment over the underlying partnership net assets was assigned to the non-exclusive patent license agreement (amortized on a straight-line basis over ten years). The Company recorded a $34, $191 and $202 decrease in the carrying amount of the investment, reflecting amortization of the patents, patent license agreement and the Company's portion of the partnership's operating results for the years ended December 31, 2011, 2010 and 2009, respectively. The carrying amount of the K/S HIMPP partnership is $903 and $937 at December 31, 2011 and 2010, respectively. The remaining amount to amortize at December 31, 2011 is $148, for each of the years ending December 31, 2012 through 2016, respectively.

The Company owns a 50% interest in a joint venture with a Swiss company to market, design, manufacture, and sell audio coils to the hearing health industry. The Company recorded a $208 increase in the carrying amount of the investment, reflecting the Company's portion of the joint venture's operating results for the year ended December 31, 2011. The Company recorded an increase of approximately $56 and $53 in the carrying amount of the investment for the years ended December 31, 2010 and 2009. The carrying amount of the investment was $380 and $172 at December 31, 2011 and 2010, respectively. The Company had a receivable of approximately $376 and $285 related to management fees as of December 31, 2011 and 2010, respectively.

Condensed financial information of the joint venture at and for the years ended December 31, 2011 and 2010 are as follows:


	2011		2010
Balance Sheet:
Current assets	$	1,594	$	1,424
Non-current assets		124		202
Total assets	$	1,718	$	1,626

Current liabilities		737		1,061
Stockholders' equity		981		565
Total liabilities and stockholders' equity	$	1,718	$	1,626

Income Statement:
Net revenues	$	4,900	$	3,953

Net income	$	416	$	112

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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