XML 30 R29.htm IDEA: XBRL DOCUMENT v2.4.0.8
GOODWILL AND INTANGIBLE ASSETS (Tables)
 9 Months Ended
Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Finite-lived Intangible Assets Amortization Expense [Table Text Block]
Amortization expense related to the definite-lived intangible assets are as follows (in thousands):
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
2014
 
2013
 
2014
 
2013
Amortization expense
$
448

 
$
440

 
$
1,339

 
$
1,125
Summary of detail and activity of goodwill by segment
Detail and activity of goodwill by segment is presented below (in thousands):
 
MMS
 
ATA
 
Total
Balance at December 31, 2013
 
 
 
 


Goodwill(1)
$
32,434

 
$
5,154

 
$
37,588

Accumulated impairment losses
(27,586
)
 
—

 
(27,586
)
 
4,848

 
5,154

 
10,002

Acquisition of Forkardt India
—

 
1,626

 
1,626

Impairment loss
(4,848
)
 
—

 
(4,848
)
Currency translation adjustments
—

 
(53
)
 
(53
)
 
(4,848
)
 
1,573

 
(3,275
)
Balance at September 30, 2014
 
 
 
 
 
Goodwill
32,434

 
6,727

 
39,161

Accumulated impairment losses
(32,434
)
 
—

 
(32,434
)
 
$
—

 
$
6,727

 
$
6,727

____________________
(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 nine months ended September 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.
Summary of the major components of intangible assets other than goodwill
The major components of intangible assets other than goodwill are as follows (in thousands):
 
September 30,
2014
 
December 31,
2013
Gross amortizable intangible assets:
 

 
 

Land rights
$
2,827

 
$
2,865

Patents
3,065

 
3,030

Technical know-how, customer lists, and other
22,729

 
21,375

Total gross amortizable intangible assets
28,621

 
27,270

 
 
 
 
Accumulated amortization:
 

 
 

Land rights
(217
)
 
(177
)
Patents
(2,936
)
 
(2,884
)
Technical know-how, customer lists, and other
(6,463
)
 
(5,220
)
Total accumulated amortization
(9,616
)
 
(8,281
)
Amortizable intangible assets, net
19,005

 
18,989

 
 
 
 
Indefinite lived intangible assets:
 

 
 

Assets associated with Bridgeport acquisition(1)
7,225

 
7,354

Usach trade name(2)
630

 
1,550

Forkardt trade name(3) 
4,170

 
4,170

 
12,025


13,074

Intangible assets other than goodwill, net
$
31,030

 
$
32,063

____________________
(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. Based on impairment indicators present in the third quarter of the current year as discussed above, the Company performed a review of the valuation of the Usach intangible assets, resulting in an impairment charge to the Usach trade name of $0.9 million. This amount is an estimate based on preliminary data, and will be finalized in the fourth quarter in connection with the formal annual impairment test.
 
(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.