Note 4 - Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 4. GOODWILL AND INTANGIBLE ASSETS

Goodwill

At September 30, 2013 and December 31, 2012, the Company’s goodwill totaled $163.2 million. The Company’s annual goodwill impairment test is conducted at November 30 of each calendar year and interim evaluations are performed when the Company determines that a triggering event has occurred that would more likely than not reduce the fair value of its goodwill below its carrying value. During the third quarter of 2013, management believed no triggering events occurred.

During the second quarter of 2012, due to a decline in the market price of the Company’s stock, the market capitalization of the Company was below the carrying value of its equity, which the Company considered a triggering event and therefore performed an interim step 1 impairment test. As a result of the impairment test, the Company recorded a preliminary goodwill impairment charge of $12.0 million in the second quarter of 2012. During the third quarter of 2012, the Company completed its step 2 evaluation and determined the total amount of the goodwill impairment to be $48.6 million, which resulted in an additional charge to goodwill of $36.6 million in the quarter ending September 30, 2012.

Intangible Assets

Components of the Company’s identifiable intangible assets are as follows:

	Weighted Average Amortization Life (Years)		Cost		Accumulated Amortization			Net
Balance at September 30, 2013:
Customer relationships		8.3	$	14,600	$	(5,796	)	$	8,804
Contractual backlog		6.5		6,700		(3,680	)		3,020
Customer contracts		5.4		3,500		(3,499	)		1
Total		7.4	$	24,800	$	(12,975	)	$	11,825

Balance at December 31, 2012:
Customer relationships		8.3	$	14,600	$	(3,728	)	$	10,872
Contractual backlog		6.5		6,700		(2,961	)		3,739
Customer contracts		5.4		3,500		(3,494	)		6
Trade name		1.5		600		(600	)		-
Total		7.3	$	25,400	$	(10,783	)	$	14,617

During the first quarter of 2013, the Company wrote-off $0.6 million of fully amortized intangible assets related to the trade name acquired in the High Performance Technologies, Inc. acquisition. The Company recorded amortization expense for its identifiable intangible assets of $0.9 million and $1.0 million for the three months ended September 30, 2013 and 2012, respectively, and $2.8 million and $3.1 million for the first nine months of 2013 and 2012, respectively.

At September 30, 2013, estimated future amortization expense for the identifiable intangible assets to be recorded in subsequent fiscal years was as follows:

Remainder of 2013	$	930
2014	$	3,663
2015	$	2,887
2016	$	2,139
2017	$	1,171
2018 and thereafter	$	1,035

- 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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