Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in carrying amounts of goodwill during the three months ended March 31, 2013 were as follows:



	Metals Segment			Plastics Segment		Total
Balance as of January 1, 2013
Goodwill	$	117,544		$	12,973	$	130,517
Accumulated impairment losses	(60,217		)	—		(60,217		)
Balance as of January 1, 2013	57,327			12,973		70,300
Currency valuation	(293		)	—		(293		)
Balance as of March 31, 2013
Goodwill	117,251			12,973		130,224
Accumulated impairment losses	(60,217		)	—		(60,217		)
Balance as of March 31, 2013	$	57,034		$	12,973	$	70,007

The Company’s annual test for goodwill impairment is completed as of January 1^st each year. Based on the January 1, 2013 test, the Company determined that there was no impairment of goodwill. As previously disclosed in the 2012 Annual Report On Form 10-K the Aerospace and Oil & Gas reporting units had estimated fair values that exceeded carrying values by less than 10%. The Company’s year-to-date operating results, among other factors, are considered in determining whether it is more-likely-than-not that the fair value for any reporting unit has declined below its carrying value, which would require the Company to perform an interim goodwill impairment test. Despite first quarter 2013 results, management does not believe it is more-likely-than-not that the fair value of any reporting unit has declined below carrying value. However, the Company experienced lower than anticipated demand in the first quarter. If the lower demand continues, this could change management's expectations of future financial results and/or key valuation assumptions used in determining the fair value of its reporting units, which could result in a goodwill impairment.

The following table summarizes the components of intangible assets:



	March 31, 2013				December 31, 2012
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer relationships	$	118,589	$	47,726	$	119,118	$	45,317
Non-compete agreements	3,888		3,319		3,888		3,235
Trade name	8,255		1,382		8,297		1,188
Developed technology	1,400		603		1,400		486
Total	$	132,132	$	53,030	$	132,703	$	50,226

The weighted-average amortization period for the intangible assets is 10.8 years, 11.3 years for customer relationships, 9.4 years for trade names, 3 years for non-compete agreements and 3 years for developed technology. Substantially all of the Company’s intangible assets were acquired as part of the acquisitions of Transtar on September 5, 2006 and Tube Supply on December 15, 2011.

For the three-month periods ended March 31, 2013 and 2012, the aggregate amortization expense was $2,956 and $2,962, respectively.

The following is a summary of the estimated annual amortization expense for 2013 and each of the next 4 years:



2013	$	11,769
2014	11,735
2015	10,969
2016	10,969
2017	8,945

- 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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