Goodwill and Long-Lived Asset Impairment

9 Months Ended

Sep. 30, 2012

Goodwill and Long-Lived Asset Impairment [Abstract]

Goodwill and Long-Lived Asset Impairment

16. Goodwill and Long-Lived Asset Impairment

During the period ended September 30, 2011, the Company concluded that a decline in its stock price and market capitalization was representative of the fair value of the reporting unit as a whole. The triggering events that led us to this conclusion were:

• Revenues - declined for the third consecutive quarter.

• New product launches – although we were in trials for several of our new products, as of September 30, 2011 we had not realized any revenues from these new products.

• Profitability – declined for the third consecutive quarter.

• Stock price – remained at depressed prices.

As such, the Company performed Step 1 of the goodwill impairment test which failed, triggering Step 2. As a result of this analysis, the excess of the carrying value of goodwill was compared to the implied fair value of goodwill and resulted in an impairment loss of $94.2 million in the fiscal quarter ended September 30, 2011.

As a result of the triggering events described above in our goodwill impairment analysis, the Company reviewed its long-lived assets for recoverability. As a result of this analysis, the Company recognized a long-lived asset impairment charge of $18.7 million in the fiscal quarter ended September 30, 2011 which was allocated pro-rata to the intangible assets of $13.4 million and $5.3 million to equipment and improvements, primarily related to our leasehold improvements.

As a result of the $112.9 million goodwill and long-lived asset impairment charge recorded in the fiscal quarter ended September 30, 2011, there were no more goodwill or intangible assets on the balance sheet as of that date.