5. GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

5. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Goodwill represents the excess of the cost over the net tangible and identifiable intangible assets of acquired businesses.

At December 31, 2012, our management completed the annual impairment test of goodwill. There was no impairment indicated at December 31, 2012 and 2011.

Other Intangible Assets

Identifiable intangible assets acquired in business combinations are recorded based upon fair market value at the date of acquisition. Amounts allocated to intangible assets are amortized on a straight-line basis over their estimated useful lives. Estimated intangible asset values, net of accumulated amortization include the following:

		December 31, 2012							December 31, 2011
	Estimated	Gross Carrying		Accumulated			Net Carrying		Gross Carrying		Accumulated			Net Carrying
	Useful Life	Amount		Amortization			Amount		Amount		Amortization			Amount
Customer lists	6 Years	$	–	$	–		$	–	$	2,845	$	(1,442	)	$	1,403
Non-compete covenants	5 Years		–		–			–		455		(425	)		30
Trademarks	25 Years		–		–			–		1,071		(175	)		896
Patents	17 Years		138		(12	)		126		183		(10	)		173
Total		$	138	$	(12	)	$	126	$	4,554	$	(2,052	)	$	2,502

In August 2012, we closed down our office in Morgan City, Louisiana, and consolidated the operations of Mako into Deep Down Delaware in Channelview, Texas. In November 2012, we evaluated Mako’s customer lists, trademarks and non-compete covenants in light of the consolidation and determined that these other intangible assets had no future economic benefit. As a result, in the year ended December 31, 2012, we recorded impairment expense of $2,156 primarily to fully impair the remaining carrying value of the Mako other intangibles. There was no impairment of other intangible assets for the year ended December 31, 2011.

Amortization expense is estimated to be an average of $6 over each of the next five years.