XML 54 R12.htm IDEA: XBRL DOCUMENT

Note 4 - Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2012

Goodwill and Intangible Assets Disclosure [Text Block]

(4) GOODWILL AND INTANGIBLE ASSETS

Goodwill

Goodwill on our balance sheets is a result of our acquisitions of Sigma Systems Corp. ("Sigma") in October 2008 and Thermonics in January 2012. The acquisition of Thermonics is discussed further in Note 3. All of our goodwill is allocated to our Thermal Products segment. Changes in the amount of the carrying value of goodwill for the six months ended June 30, 2012 are as follows:

	Sigma		Thermonics		Total

Balance - January 1, 2012	$	1,656	$	-	$	1,656
Acquisition of Thermonics		-		50		50
Balance - June 30, 2012	$	1,656	$	50	$	1,706

Intangible Assets

As of June 30, 2012 and December 31, 2011, we had finite-lived intangible assets on our balance sheets that are a result of our acquisitions of Sigma Systems Corp. ("Sigma") in October 2008 and Thermonics in January 2012. The acquisition of Thermonics is discussed further in Note 3. At each of June 30, 2012 and December 31, 2011, we also had an indefinite-lived intangible asset which consists of a trademark. This asset is a result of our acquisition of Sigma in October 2008.

The following table provides further detail about our intangible assets as of June 30, 2012 and December 31, 2011:

	June 30, 2012
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	1,480	$	316	$	1,164
Patented technology		590		190		400
Software		270		101		169
Trade name		140		16		124
Customer backlog		70		70		-
Non-compete/non-solicitation agreement		48		8		40
Total finite-lived intangible assets		2,598		701		1,897
Indefinite-lived intangible assets:
Trademark		510		-		510
Total intangible assets	$	3,108	$	701	$	2,407

	December 31, 2011
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	370	$	200	$	170
Patented technology		230		150		80
Software		270		88		182
Total finite-lived intangible assets		870		438		432
Indefinite-lived intangible assets:
Trademark		510		-		510
Total intangible assets	$	1,380	$	438	$	942

We generally amortize our finite-lived intangible assets over their estimated useful lives on a straightline basis, unless an alternate amortization method can be reliably determined. Any such alternate amortization method would be based on the pattern in which the economic benefits of the intangible asset are expected to be consumed. None of our intangible assets have any residual value. The following table provides further information about the estimated useful lives of our finite-lived intangible assets as of June 30, 2012:

	Estimated Useful Life		Remaining Estimated Useful Life at June 30, 2012
	- - - - (in months) - - - -
Finite-lived intangible assets resulting from the acquisition of Sigma:
Customer relationships		72		27
Software		120		75
Patented technology		60		15
Finite-lived intangible assets resulting from the acquisition of Thermonics:
Customer relationships		72		66.5
Customer backlog		3		-
Trade name		48		42.5
Patented technology		132		126.5
Non-compete/non-solicitation agreement		18		15

The following table sets forth changes in the amount of the carrying value of finite-lived intangible assets for the six months ended June 30, 2012:

Balance - January 1, 2012	$	432
Acquisition of Thermonics		1,728
Amortization		(263	)
Balance - June 30, 2012	$	1,897

Total amortization expense for the six months ended June 30, 2012 and 2011 was $263 and $67, respectively. Total estimated amortization expense for 2012 is $476. The following table sets forth the estimated annual amortization expense for our finite-lived intangible assets for each of the next five years:

2013	$	446
2014	$	355
2015	$	289
2016	$	229
2017	$	212

- 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.

+ References+ Details