Goodwill and Other Identifiable Intangible Assets

6 Months Ended

Jul. 02, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

4. Goodwill and Other Identifiable Intangible Assets

The changes in the carrying amount of goodwill for the twenty-six weeks ended July 2, 2011 are as follows (in thousands):

	North
	America		EMEA		Total
Balance as of January 1, 2011	$	3,947	$	4,046	$	7,993
Changes in foreign currency exchange rates		-		149		149

Balance as of July 2, 2011	$	3,947	$	4,195	$	8,142

Intangible assets included in Goodwill and intangible assets, net in the Condensed Consolidated Balance Sheets are as follows (in thousands):

	July 2, 2011					January 1, 2011
			Accumulated					Accumulated
	Cost		Amortization			Cost		Amortization
Customer relationships	$	3,400	$	(3,329	)	$	3,400	$	(2,904	)

Intangible amortization expense for the thirteen weeks ended July 2, 2011 and July 3, 2010 was $213,000 and $498,000, respectively, including $140,000 reported in cost of services for the thirteen weeks ended July 3, 2010 for acquired software technology that became fully amortized during 2010. Intangible amortization expense for the twenty-six weeks ended July 2, 2011 and July 3, 2010 was $425,000 and $1.0 million, respectively, including $286,000 reported in cost of services for the twenty-six weeks ended July 3, 2010 for acquired software technology that became fully amortized during 2010. The remaining net book value of customer relationships in the amount of $71,000 will be fully amortized during the third quarter of fiscal year 2011.

The Company evaluates goodwill for impairment on an annual basis on the last day of the first fiscal month of the fourth quarter and whenever events or circumstances indicate that these assets may be impaired. The Company performs its impairment testing for goodwill in accordance with FASB ASC 350, “Intangibles-Goodwill and Other .” Management determined that there were no events or changes in circumstances during the thirteen or twenty-six weeks ended July 2, 2011 which indicated that goodwill needed to be tested for impairment during the period.

The Company reviews long-lived assets and certain identifiable intangibles to be held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets might not be recoverable in accordance with the provisions of FASB ASC 360, “Property, Plant and Equipment ” and FASB ASC 350, “Intangibles-Goodwill and Other .” Management determined that there were no events or changes in circumstances during the thirteen or twenty-six weeks ended July 2, 2011 which indicated that long-lived assets and intangible assets needed to be reviewed for impairment during the period.

- 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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