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Goodwill and Other Intangible Assets
9 Months Ended
Sep. 30, 2011
Goodwill and Other Intangible Assets [Abstract] 
Goodwill and Other Intangible Assets

Note 10—Goodwill and Other Intangible Assets:

The Company does not amortize goodwill; however, the carrying amount of goodwill is tested, at least annually, for impairment. Absent any events throughout the year which would indicate a potential impairment has occurred, the Company performs its annual impairment testing during the fourth quarter.

While there have been no impairments during the first nine months of 2011, uncertainties or other factors that could result in a potential impairment in future periods include continued long-term production delays or a significant decrease in expected demand related to the Boeing 787 Dreamliner ® program, as well as any cancellation of one of the other major aerospace programs the Company currently supplies, including the Joint Strike Fighter program or the Airbus family of aircraft, including the A380 and A350XWB programs. In addition, the Company’s ability to ramp up its production of these programs in a cost efficient manner may also impact the results of a future impairment test.

Goodwill.    The carrying amount of goodwill attributable to each segment at December 31, 2010 and September 30, 2011 was as follows:

                                 
    Titanium
Group
    Fabrication
Group
    Distribution
Group
    Total  

December 31, 2010

  $ 2,548     $ 29,414     $ 9,833     $ 41,795  

Translation adjustment

          (490           (490
   

 

 

   

 

 

   

 

 

   

 

 

 

September 30, 2011

  $ 2,548     $ 28,924     $ 9,833     $ 41,305  
   

 

 

   

 

 

   

 

 

   

 

 

 

Intangibles.    Intangible assets consist of customer relationships as a result of the Company’s prior acquisitions. These finite-lived intangible assets, which were initially valued at fair value using an income approach, are being amortized over 20 years. In the event that long-term demand or market conditions change and the expected future cash flows associated with these assets is reduced, a write-down or acceleration of the amortization period may be required.

 

There were no intangible assets attributable to either the Titanium Group or Distribution Group at December 31, 2010 and September 30, 2011. The carrying amount of intangible assets attributable to our Fabrication Group at December 31, 2010 and September 30, 2011 was as follows:

                                 
    December 31,
2010
    Amortization     Translation
Adjustment
    September 30,
2011
 

Fabrication Group

  $ 14,066     $ (787   $ (450   $ 12,829