7. Goodwill and Other Intangible Assets

Goodwill is the excess of purchase price over the fair value of net assets acquired. The carrying value of goodwill is evaluated for impairment on an annual basis, or more frequently if certain indicators are present, using a fair-value-based approach. The carrying value for goodwill was $5.2 million at December 31, 2011, all of which was allocated to the Company’s single reportable segment. Of this balance, $4.7 million reflected the balance of Solar Power, Inc. carried by its parent company, LDK, as required under the accounting guidelines for a transfer of an entity under common control (refer to Note 4—Acquisition of Solar Green Technology). At September 30, 2012, due primarily to the recent reduction in the Company’s market capitalization, the Company’s market value was significantly below its book value, thus triggering an impairment analysis. As a result of this analysis, the Company recorded a goodwill impairment charge of $5.2 million, the amount of which was measured using a discounted cash flow analysis using level 3 unobservable inputs. As such, the balance of goodwill as of September 30, 2012 was zero. For the three and nine months ended September 30, 2011, no impairment of goodwill was recorded.

Resulting from the June 2012 SGT acquisition, reflected in the Condensed Consolidated Balance Sheets of the Company, are certain intangible assets, patent and customer relationships, and related amortization expense from March 31, 2011 forward, have been reflected in the Condensed Consolidated Financial Statements.

The following table presents details of the Company’s other intangible assets (in thousands):


	Estimated Useful Life (in months)		Gross		Accumulated Amortization			Net
As of September 30, 2012
Patent		57	$	2,700	$	(853	)	$	1,847
Customer relationships		33		400		(218	)		182

			$	3,100	$	(1,071	)	$	2,029

As of December 31, 2011 (1)
Patent		57	$	2,700	$	(426	)	$	2,274
Customer relationships		33		400		(109	)		291

			$	3,100	$	(535	)	$	2,565

(1)	As adjusted to reflect the balances of Solar Power, Inc. beginning March 31, 2011, at the carrying value of LDK as required under the accounting guidelines for a transfer of an entity under common control (refer to Note 4—Acquisition of Solar Green Technology).

As of September 30, 2012, the estimated future amortization expense related to other intangible assets is as follows (in thousands):


	Amount
Year (in thousands)
2012 (remaining three months)	$	178
2013		714
2014		574
2015		563

	$	2,029