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GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2011

(6) GOODWILL AND INTANGIBLE ASSETS

The Company's annual impairment testing of goodwill was performed during the third quarter of 2011. As a result of that testing, the Company determined that its goodwill and intangible assets were not impaired, although the fair value of the Webforge reporting unit in the Engineered Infrastructure Products segment, which has approximately $64,500 of goodwill, was not substantially higher than carrying value. The Company continues to monitor changes in the global economy that could impact future operating results of its reporting units. If such conditions arise, the Company will test a given reporting unit for impairment prior to the annual test.

Amortized Intangible Assets

The components of amortized intangible assets at December 31, 2011 and December 25, 2010 were as follows:

	As of December 31, 2011

	Gross Carrying Amount		Accumulated Amortization		Weighted Average Life
Customer Relationships	$	155,629	$	50,107	13 years
Proprietary Software & Database		3,116		2,711	6 years
Patents & Proprietary Technology		9,489		3,863	8 years
Non-compete Agreements		1,812		1,307	6 years

	$	170,046	$	57,988

	As of December 25, 2010

	Gross Carrying Amount		Accumulated Amortization		Weighted Average Life
Customer Relationships	$	155,664	$	37,932	13 years
Proprietary Software & Database		2,609		2,568	6 years
Patents & Proprietary Technology		9,486		2,336	8 years
Non-compete Agreements		1,674		1,054	6 years

	$	169,433	$	43,890

Amortization expense for intangible assets was $14,833, $11,873, and $8,953 for the fiscal years ended December 31, 2011, December 25, 2010 and December 26, 2009, respectively. Estimated annual amortization expense related to finite-lived intangible assets is as follows:

	Estimated Amortization Expense

2012	$	14,004
2013		13,112
2014		12,687
2015		11,821
2016		11,256

The useful lives assigned to finite-lived intangible assets included consideration of factors such as the Company's past and expected experience related to customer retention rates, the remaining legal or contractual life of the underlying arrangement that resulted in the recognition of the intangible asset and the Company's expected use of the intangible asset.

Non-amortized intangible assets

Intangible assets with indefinite lives are not amortized. The carrying values of trade names at December 31, 2011 and December 25, 2010 were as follows:

	December 31, 2011		December 25, 2010

Webforge	$	16,659	$	16,478	2010
Newmark		11,111		11,111	2004
Ingal EPS/Ingal Civil Products		8,792		8,795	2010
Donhad		6,633		6,635	2010
PiRod		1,750		4,750	2001
Industrial Galvanizers		3,856		4,632	2010
Other		7,224		7,591

	$	56,025	$	59,992

The Company's trade names were tested for impairment separately from goodwill in the third quarter of 2011. The values of the trade names were determined using the relief-from-royalty method. The Company determined that the value of its trade names were not impaired, except for the PiRod and Industrial Galvanizers of America trade names. The evaluations of these trade names were completed in the fourth quarter of 2011, which resulted in a write down of $3,779.

In its determination of these intangible assets as indefinite-lived, the Company considered such factors as its expected future use of the intangible asset, legal, regulatory, technological and competitive factors that may impact the useful life or value of the intangible asset and the expected costs to maintain the value of the intangible asset. The Company expects that these intangible assets will maintain their value indefinitely. Accordingly, these assets are not amortized.

Goodwill

The carrying amount of goodwill by segment as of December 31, 2011 was as follows:

	Engineered Infrastructure Products Segment			Utility Support Structures Segment		Coatings Segment			Irrigation Segment			Other			Total

Balance December 25, 2010	$	152,062		$	77,141	$	64,868		$	2,064		$	18,712		$	314,847
Impairment		—			—		—			(276	)		—			(276	)
Acquisition		—			—		—			788			—			788
Foreign currency translation		(504	)				(48	)		—			(145	)		(697	)

Balance December 31, 2011	$	151,558		$	77,141	$	64,820		$	2,576		$	18,567		$	314,662

The Company examined the goodwill assigned to its reporting units in the third quarter of 2011 and determined that the goodwill on its consolidated balance sheet at December 31, 2011 was not impaired. The impairment charge relates to a Irrigation segment retail operation. In the fourth quarter of 2011, the Company decided to dispose of this operation and, accordingly, all of the goodwill assigned to that operation was written off. The goodwill from acquisitions arose from the acquisition of a Brazilian irrigation monitoring company.

The carrying amount of goodwill by segment as of December 25, 2010 was as follows:

	Engineered Infrastructure Products Segment		Utility Support Structures Segment		Coatings Segment		Irrigation Segment		Other		Total

Balance December 26, 2009	$	55,338	$	77,141	$	43,777	$	2,064	$	—	$	178,320
Acquisition		95,843		—		20,906		—		18,547		135,296
Foreign currency translation		881		—		185		—		165		1,231

Balance December 25, 2010	$	152,062	$	77,141	$	64,868	$	2,064	$	18,712	$	314,847

The goodwill from acquisitions resulted from the acquisition of Delta plc in May 2010.

- 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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