Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

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Goodwill and Intangible Assets
9 Months Ended
Sep. 29, 2012
Goodwill and Intangible Assets [Abstract]  
GOODWILL AND INTANGIBLE ASSETS

6. GOODWILL AND INTANGIBLE ASSETS

The Company had $2,691 of goodwill at September 29, 2012, and December 31, 2011, including $715 related to its acquisition of Sun Korea and $1,976 related to the acquisition of HCT. Goodwill is held in other assets on the balance sheet.

The goodwill related to the acquisition of Sun Korea of $715 was valued at December 31, 2011, using a valuation model reflecting the expected future cash flow projections. The analysis indicated that there was no impairment of the carrying value of the goodwill. As of September 29, 2012, no factors were identified that indicated impairment of the carrying value of the goodwill related to Sun Korea.

On September 27, 2011, the Company recognized goodwill arising from the acquisition of HCT equal to $1,976 consisting of the value of the workforce, synergies and competitive advantages obtained as a result of the acquisition. The goodwill was valued during the period ended September 29, 2012, using a valuation model reflecting the expected future cash flow projections. The analysis indicated that there was no impairment of the carrying value of the goodwill.

 

The Company recognized $2,658 in identifiable intangible assets as a result of its acquisitions of HCT. Intangible assets are held in other assets on the balance sheet. At September 29, 2012, and December 31, 2011, intangible assets consisted of the following:

 

                                                         
          September 29, 2012     December 31, 2011  
    Useful life
(years)
    Gross carrying
amount
    Accumulated
amortization
    Net carrying
amount
    Gross carrying
amount
    Accumulated
amortization
    Net carrying
amount
 

Definite-lived intangibles:

                                                       

Trade Name

    10     $ 756     $ (76   $ 680     $ 756     $ (19   $ 737  

Technology

    10       697       (239     458       697       (187     510  

Customer Relationships

    20       1,475       (74     1,401       1,475       (18     1,457  
           

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
            $ 2,928     $ (389   $ 2,539     $ 2,928     $ (224   $ 2,704  

Total estimated amortization expense for the years 2012 through 2016 is presented below. The amount reflected below for 2012 includes year-to-date amortization expense.

 

         

Year:

       

2012

    219  

2013

    219  

2014

    219  

2015

    206  

2016

    192  
   

 

 

 

Total

  $ 1,055  

Intangible assets are evaluated for impairment whenever events or circumstances indicate that the undiscounted net cash flows to be generated by their use over their expected useful lives and eventual disposition may be less than their net carrying value. No such events or circumstances occurred during the nine months ended September 29, 2012.