Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Indefinite-Lived Intangible Asset

The carrying amounts of goodwill, by operating segment, for the years ended December 31, 2013 and 2012 were as follows:



	(In thousands)
	Ducommun AeroStructures		Ducommun LaBarge Technologies			Consolidated Ducommun
Gross goodwill	$	57,243	$	184,970		$	242,213
Accumulated goodwill impairment	—		(80,273		)	(80,273		)
Balance at December 31, 2012	$	57,243	$	104,697		$	161,940
Balance at December 31, 2013	$	57,243	$	104,697		$	161,940

We performed our annual goodwill impairment test during the fourth quarter of 2013. During 2013 and 2012, we identified no goodwill impairment. In the fourth quarter of 2011, we recorded a goodwill impairment charge of $54.3 million for the DLT internal reporting unit, driven by a decline in our market value, which has since recovered, and a softening defense market. As of December 31, 2013, the date of the most recent annual impairment test, the DAS, DLT, and Miltec internal reporting units had $57.2 million, $96.3 million, and $8.4 million of recorded goodwill, respectively. As of December 31, 2013, the fair value of the DAS, DLT and Miltec internal reporting units exceeded their carrying values by approximately 12%, 11% and 15%, respectively.

We performed our annual indefinite-lived intangible asset impairment test during the fourth quarter of 2013. As a result, no impairment was identified as of December 31, 2013 nor have we previously identified any impairment related to this asset. The trade-name indefinite-lived intangible asset was $32.9 million as of December 31, 2013 and 2012.

Other Intangible Assets

Other intangible assets are related to acquisitions. Other intangible assets with finite lives are amortized on the straight-line method over periods ranging from three to eighteen years. The fair value of other intangible assets was determined by management and consisted of the following:



		(In thousands)
		December 31, 2013						December 31, 2012
	Wtd. Avg Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived assets
Customer relationships	18	$	164,500	$	33,853	$	130,647	$	164,500	$	23,460	$	141,040
Trade names	10	3,400		2,720		680		3,400		2,380		1,020
Contract renewal	14	1,845		967		878		1,845		835		1,010
Technology	15	400		78		322		400		51		349
Total		$	170,145	$	37,618	$	132,527	$	170,145	$	26,726	$	143,419

The carrying amount of other intangible assets by operating segment as of December 31, 2013 and 2012 was as follows:



	(In thousands)
	December 31, 2013						December 31, 2012
	Gross		Accumulated Amortization		Net Carrying Value		Gross		Accumulated Amortization		Net Carrying Value
Other intangible assets
Ducommun AeroStructures	$	19,300	$	11,330	$	7,970	$	19,300	$	9,084	$	10,216
Ducommun LaBarge Technologies	150,845		26,288		124,557		150,845		17,642		133,203
Total	$	170,145	$	37,618	$	132,527	$	170,145	$	26,726	$	143,419

Amortization expense of other intangible assets was $10.9 million, $11.5 million and $7.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. Amortization expense of other intangibles increased in 2012 compared to 2011 due to the LaBarge Acquisition. Future amortization expense by operating segment is expected to be as follows:



	(In thousands)
	Ducommun AeroStructures		Ducommun LaBarge Technologies		Consolidated Ducommun
2014	$	1,717	$	8,644	$	10,361
2015	1,386		8,646		10,032
2016	1,123		8,304		9,427
2017	907		8,306		9,213
2018	737		8,305		9,042
Thereafter	2,100		82,352		84,452
	$	7,970	$	124,557	$	132,527

- 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.

+ References+ Details