Goodwill And Intangible Assets

6 Months Ended

Mar. 31, 2012

Goodwill And Intangible Assets [Abstract]

3. Goodwill and Intangible Assets

The Company's intangible assets by major asset class subject to amortization consist of:


March 31, 2012	Estimated Useful Life		Original Cost		Accumulated Amortization		Net Book Value

Intangible assets:
Trade name		10 years	$	1,900	$	159	$	1,741
Non-compete agreement		5 years		1,300		197		1,103
Below market lease		5 years		900		235		665
Customer relationships		10 years		13,000		1,146		11,854
Order backlog		1 year		2,100		1,634		466
Transition services agreement		< 1 year		23		23		0


Total intangible assets			$	19,223	$	3,394	$	15,829


September 30, 2011	Estimated Useful Life		Original Cost		Accumulated Amortization		Net Book Value

Intangible assets:
Trade name		10 years	$	900	$	73	$	827
Non-compete agreement		5 years		500		81		419
Below market lease		5 years		900		145		755
Customer relationships		10 years		6,800		548		6,252
Order backlog		1 year		1,300		1,047		253
Transition services agreement		< 1 year		23		23		0


Total intangible assets			$	10,423	$	1,917	$	8,506

Included in the intangible assets at March 31, 2012 are intangible assets acquired in connection with the purchase of the forging business and substantially all related operating assets from GEL Industries, Inc. (DBA Quality Aluminum Forge, Inc.) on October 28, 2011, as discussed more fully in Note 11. These acquired intangible assets consist of:


	Estimated Useful Life		Original Cost
Intangible assets:
Trade name		10 years	$	1,000
Non-compete agreement		5 years		800
Customer relationships		10 years		6,200
Order backlog		1 year		800


Total intangible assets			$	8,800

The amortization expense on identifiable intangible assets for the six months ended March 31, 2012 and 2011 was $1,477 and $742, respectively. Amortization expense associated with the identified intangible assets, all of which relates to the Forged Components Group, is expected to be as follows:


	Amortization Expense
Fiscal year 2012	$	2,952
Fiscal year 2013		2,025
Fiscal year 2014		1,950
Fiscal year 2015		1,950
Fiscal year 2016		1,724

The Company's goodwill is not being amortized, but is subject to impairment tests. All of the goodwill is expected to be deductible for tax purposes. Changes in the net carrying amount of goodwill were as follows:


Balance at September 30, 2011	$	3,493
Goodwill acquired during the year		3,533

Balance at March 31, 2012	$	7,026

- 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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