GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Detail and activity of goodwill by segment is presented below (in thousands):



	MMS		ATA			Total
Balance at December 31, 2013⁽¹⁾	$	4,848	$	5,154		$	10,002
Acquisition of Forkardt India	—		1,626			1,626
Currency translation adjustments	—		(4		)	(4		)
Balance at June 30, 2014	$	4,848	$	6,776		$	11,624

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⁽¹⁾

In accordance with business combination guidance, changes to the purchase price allocation are adjusted retrospectively to the consolidated financial results. The values above include measurement period adjustments recorded in the six months ended June 30, 2014 to primarily revise the fair value of other current assets, accrued expenses and AOCI. The December 31, 2013 balances included in the consolidated balance sheets have been revised to include the effect of the measurement period adjustments.

The gross carrying value of goodwill at June 30, 2014 and December 31, 2013 was $39.2 million and $37.6 million respectively. Accumulated impairment losses at both June 30, 2014 and December 31, 2013 were $27.6 million.

The major components of intangible assets other than goodwill are as follows (in thousands):



	June 30, 2014			December 31, 2013
Gross amortizable intangible assets:
Land rights	$	2,797		$	2,865
Patents	3,052			3,030
Technical know-how, customer lists, and other	22,661			21,375
Total gross amortizable intangible assets	28,510			27,270

Accumulated amortization:
Land rights	(200		)	(177		)
Patents	(2,918		)	(2,884		)
Technical know-how, customer lists, and other	(6,058		)	(5,220		)
Total accumulated amortization	(9,176		)	(8,281		)
Amortizable intangible assets, net	19,334			18,989

Indefinite lived intangible assets:
Assets associated with Bridgeport acquisition⁽¹⁾	7,371			7,354
Usach trade name⁽²⁾	1,550			1,550
Forkardt trade name⁽³⁾	4,170			4,170
	13,091			13,074
Intangible assets other than goodwill, net	$	32,425		$	32,063

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⁽¹⁾	Represents the aggregate value of the trade name, trademarks and copyrights associated with the former worldwide operations of Bridgeport. The Bridgeport brand name is used on all of the machining center lines. After consideration of legal, regulatory, contractual, competitive, economic and other factors, the asset has been determined to have an indefinite useful life.


⁽²⁾	Represents the value of the trade name associated with Usach, which the Company acquired in 2012. The Usach trade name is used on all of the grinding machines and grinding systems manufactured by Usach. After consideration of legal, regulatory, contractual, competitive, economic and other factors, the asset has been determined to have an indefinite useful life.


⁽³⁾	Represents the value of the trade name associated with Forkardt, which the Company acquired in 2013. The Forkardt trade name is used on all of the products manufactured by Forkardt. After consideration of legal, regulatory, contractual, competitive, economic and other factors, the asset has been determined to have an indefinite useful life.

Amortization expense related to these amortizable intangible assets was $0.5 million and $0.4 million for the three months ended June 30, 2014 and 2013, respectively, and $0.9 million and $0.7 million for the six months ended June 30, 2014 and 2013, respectively.

- 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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