GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Jan. 01, 2012

NOTE 8 – GOODWILL AND INTANGIBLE ASSETS

In the second quarter of 2011 and 2010, we performed the annual impairment test for goodwill which did not result in any impairment. In conjunction with performing the goodwill impairment test in 2010, we re-evaluated our identified reporting units and revised our goodwill allocation.

Goodwill consists of the following:

	Healthcare		Financial Services		Commercial		Industrial		Unallocated			Total
Goodwill at January 3, 2010	$	-	$	-	$	-	$	-	$	6,557		$	6,557
Reallocation of goodwill		2,385		1,743		1,296		1,133		(6,557	)		-
Goodwill at January 2, 2011		2,385		1,743		1,296		1,133		-			6,557
Acquisitions		899		-		-		-		-			899
Goodwill at January 1, 2012	$	3,284	$	1,743	$	1,296	$	1,133	$	-		$	7,456

Identifiable intangible assets consist of the following:

	January 1, 2012					January 2, 2011
	Gross					Gross
	Carrying		Accumulated			Carrying		Accumulated
	Amount		Amortization			Amount		Amortization

Intangible Assets with Determinable Lives
Patents	$	2,916	$	(891	)	$	2,916	$	(739	)
Customer relationships		2,610		(261	)		-		-
Software technology		2,650		(189	)		-		-
Trademark		129		(9	)		-		-
Non-compete agreement		100		(32	)		100		(12	)
Total	$	8,405	$	(1,382	)	$	3,016	$	(751	)

Amortization expense for intangible assets was $631, $101, and $66 for 2011, 2010, and 2009. Estimated amortization expense for the next five years is as follows: $1,090 in 2012, $960 in 2013, $829 in 2014, $817 in 2015, and $809 in 2016.

- 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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