Goodwill And Other Intangible Assets

3 Months Ended

Mar. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

We had intangible assets with a net book value of $72.2 million and $75.0 million as of March 31, 2013 and December 30, 2012, respectively.

The following table reflects the components of intangible assets as of March 31, 2013 and December 30, 2012:



		March 31, 2013				December 30, 2012
(amounts in thousands)	Amortizable Life (years)	Gross Amount		Gross Accumulated Amortization		Gross Amount		Gross Accumulated Amortization
Finite-lived intangible assets:
Customer lists	6 to 20	$	80,936	$	50,833	$	81,895	$	50,215
Trade name	1 to 30	29,622		18,824		30,414		19,143
Patents, license agreements	3 to 14	59,747		50,485		60,682		50,826
Other	2 to 6	7,103		6,578		7,178		6,546
Total amortized finite-lived intangible assets		177,408		126,720		180,169		126,730

Indefinite-lived intangible assets:
Trade name		21,508		—		21,511		—
Total identifiable intangible assets		$	198,916	$	126,720	$	201,680	$	126,730

Amortization expense for the three months ended March 31, 2013 and March 25, 2012 was $2.3 million and $2.7 million, respectively.

Estimated amortization expense for each of the five succeeding years is anticipated to be:



(amounts in thousands)
2013	⁽¹⁾	$	8,810
2014		$	8,314
2015		$	8,153
2016		$	7,893
2017		$	6,872


⁽¹⁾	The estimated amortization expense for the remainder of 2013 is anticipated to be $6.5 million.

The changes in the carrying amount of goodwill are as follows:



(amounts in thousands)	Shrink Management Solutions			Apparel Labeling Solutions			Retail Merchandising Solutions			Total
Balance as of December 25, 2011	$	161,811		$	62,584		$	61,708		$	286,103
Purchase accounting adjustment	—			1,624			—			1,624
Discontinued operations	(3,263		)	—			—			(3,263		)
Impairment losses	—			(64,437		)	(38,278		)	(102,715		)
Translation adjustments	483			229			280			992
Balance as of December 30, 2012	$	159,031		$	—		$	23,710		$	182,741
Translation adjustments	(2,751		)	—			(703		)	(3,454		)
Balance as of March 31, 2013	$	156,280		$	—		$	23,007		$	179,287

The following table reflects the components of goodwill as of March 31, 2013 and December 30, 2012:



	March 31, 2013						December 30, 2012
(amounts in thousands)	Gross Amount		Accumulated Impairment Losses		Goodwill, Net		Gross Amount		Accumulated Impairment Losses		Goodwill, Net
Shrink Management Solutions	$	202,560	$	46,280	$	156,280	$	208,835	$	49,804	$	159,031
Apparel Labeling Solutions	83,319		83,319		—		84,059		84,059		—
Retail Merchandising Solutions	131,334		108,327		23,007		133,707		109,997		23,710
Total goodwill	$	417,213	$	237,926	$	179,287	$	426,601	$	243,860	$	182,741

On January 28, 2011, we entered into a Master Purchase Agreement to acquire the equity and/or assets of the Shore to Shore businesses. The acquisition was settled on May 16, 2011 for approximately $78.7 million, net of cash acquired of $1.9 million and the assumption of debt of $4.2 million.

The purchase price included a payment to escrow of $17.5 million related to the 2010 performance of the acquired business. This amount is subject to adjustment pending final determination of the 2010 performance and could result in an additional purchase price payment of up to $6.3 million. We are currently involved in an arbitration process in order to require the seller to provide audited financial information related to the 2010 performance. When this information is received, the final adjustment to the purchase price will be recognized through earnings.

Acquisition costs incurred in connection with the transaction are recognized within acquisition costs in the Consolidated Statement of Operations and approximate $0.2 million for the three months ended March 31, 2013 and $14 thousand for the three months ended March 25, 2012.

We perform an assessment of goodwill by comparing each individual reporting unit’s carrying amount of net assets, including goodwill, to their fair value at least annually during the October month-end close and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. There were no impairment indicators in the first quarter of 2013.

- 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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