Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2011

Goodwill and Intangible Assets [Abstract]

4. Goodwill and Intangible Assets

Goodwill

The Company’s Heavy Duty Diesel Systems reporting unit, which is also a reporting segment, has all of the Company’s allocated goodwill. The changes in the carrying amount of goodwill for the six months ended June 30, 2011 is as follows (in thousands):


Balance at December 31, 2010 (1)	$	4,671
Effect of translation adjustment		157

Balance at June 30, 2011	$	4,828


(1)		Reflects the impact of measurement period adjustments (see Note 3).

Intangible Assets

Intangible assets as of June 30, 2011 and December 31, 2010 are summarized as follows (in thousands):


	Useful Life	June 30,			December 31,
	in Years	2011			2010
Trade name	15 — 20	$	1,184		$	1,165
Patents and know-how	5 — 16		5,507			5,416
Backlog	1		180			180
Customer relationships	4 — 8		2,581			2,544

			9,452			9,305
Less accumulated amortization			(2,822	)		(2,011	)

		$	6,630		$	7,294

The Company recorded amortization expense of $0.4 million and $0.1 million related to amortizable intangible assets during the three months ended June 30, 2011 and 2010, respectively. The Company recorded amortization expense of $0.8 million and $0.3 million related to amortizable intangible assets during the six months ended June 30, 2011 and 2010, respectively.

Estimated amortization expense for existing intangible assets for each of the next five years is as follows (in thousands):


Years ending December 31:
Remainder of 2011	$	767
2012		1,031
2013		869
2014		789
2015		724

- 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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