GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

4. GOODWILL AND OTHER INTANGIBLE ASSETS

The changes in the carrying amount of goodwill as of December 31, 2011 are as follows (in thousands):

	North
	America		EMEA		Total
Balance as of January 1, 2011	$	3,947	$	4,046	$	7,993
Changes due to foreign currency exchange rates				2		2
Balance as of December 31, 2011	$	3,947	$	4,048	$	7,995

The Company had gross goodwill and accumulated goodwill impairment losses as of the beginning and end of fiscal years 2011 and 2010 as follows:

	As of December 31,			As of January 1,			As of January 2,
	2011			2011			2010
Gross balance of goodwill (including foreign currency adjustments)	$	67,552		$	67,549		$	67,641
Accumulated goodwill impairment losses (including foreign currency adjustments)		(59,557	)		(59,556	)		(59,869	)
Net balance of goodwill	$	7,995		$	7,993		$	7,772

Licenses and identifiable intangible assets, net are comprised of the following (in thousands):

	January 1, 2011
			Accumulated
	Cost		Amortization
Customer relationships	$	5,261	$	(4,765

Intangible amortization expense for the fiscal years ended December 31, 2011 and January 1, 2011 was $496,000 and $1,973,000, respectively, including $581,000 reported in cost of services for fiscal year 2010 for acquired software technology that was fully amortized as of January 1, 2011. At December 31, 2011, all intangible assets were fully amortized.

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." Based on the results of the annual step one impairment test, management concluded that there was no impairment of goodwill during fiscal year 2011 and fiscal year 2010. In addition, due to the loss of key leadership personnel and results of operations in the EMEA reporting unit during the thirteen weeks ended October 1, 2011, management performed step one of the goodwill impairment evaluation as of October 1, 2011. Based on the results of the interim step one impairment test, management concluded that the EMEA reporting unit’s carrying amount did not exceed its fair value as of October 1, 2011 and therefore the reporting unit’s goodwill was deemed not impaired.

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." Based on an analysis of future cash flows, management determined that there was no impairment of long-lived or intangible assets during fiscal year 2011 and fiscal year 2010.