GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2013

NOTE 4. GOODWILL AND INTANGIBLE ASSETS

A summary of goodwill amount follows:

	March 31,			December 31,
	2013			2012
	(in thousands)
Gross carrying value	$	32,274		$	32,274
Accumulated impairment losses	(23,777		)	(23,777		)
	$	8,497		$	8,497

The major components of intangible assets other than goodwill are as follows:

	March 31,			December 31,
	2013			2012
	(in thousands)
Gross amortizable intangible assets:
Land rights	$	2,793		$	2,784
Patents	3,008			3,006
Technical know-how, customer list, and other	12,284			12,392
Total gross amortizable intangible assets	18,085			18,182

Accumulated amortization:
Land rights	(130		)	(116		)
Patents	(2,829		)	(2,807		)
Technical know-how, customer list, and other	(4,049		)	(3,870		)
Total accumulated amortization	(7,008		)	(6,793		)
Amortizable intangible assets, net	11,077			11,389

Intangible asset not subject to amortization:
Assets associated with Bridgeport acquisition (1)	7,368			7,595
Assets associated with Usach acquisition (2)	2,840			2,840
	10,208			10,435
Intangible assets other than goodwill, net	$	21,285		$	21,824

(1) Represents the aggregate value of the trade name, trademarks and copyrights associated with the former worldwide operations of Bridgeport. We use the Bridgeport brand name on all of our 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. The $0.2 million decrease in the balance from 2012 was the impact of foreign currency exchange.

(2) Represents the value of the trade name associated with Usach Technologies, Inc. (“Usach”) which the Company acquired in 2012. We use the Usach trade name 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.

Amortization expense related to these amortizable intangible assets was $0.3 million and $0.2 million for the three months ended March 31, 2013 and March 31, 2012, 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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