Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2012

Goodwill and Intangible Assets [Abstract]

Note 9 – Goodwill and Intangible Assets

The Company's intangible assets not subject to amortization consist entirely of goodwill. The Company accounts for goodwill in accordance with the Intangibles – Goodwill and Other Topic of the Codification, ASC 350. Under ASC 350, the Company's goodwill is not amortized throughout the period, but is subject to an annual impairment test. The Company performs an impairment test annually as of October 1, or more frequently if events or changes in business circumstances indicate that the carrying value may not be recoverable.

The changes in the carrying amount of goodwill by reportable segment during the three and nine-month periods ended September 30, 2012, were as follows. The amounts shown as "acquisitions" in the schedule below are increases to the purchase price for the Company's 2011 acquisition of Brandimage, resulting from decreases in the amount recoverable from the sellers pursuant to the net working capital adjustment provision of the purchase agreement.

							Asia
	Americas			Europe			Pacific			Total
Cost:
December 31, 2011	$	198,510		$	40,364		$	10,037		$	248,911
Acquisitions		266			--			--			266
Additional purchase accounting adjustments		3,507			992			683			5,183
Foreign currency translation		495			1,050			288			1,832

March 31, 2012		202,778			42,406			11,008			256,192
Additional purchase accounting adjustments		--			(50	)		--			(50	)
Foreign currency translation		(600	)		(1,343	)		(365	)		(2,308	)

June 30, 2012		202,178			41,013			10,643			253,834
Acquisitions		272			--			--			272
Additional purchase accounting adjustments		(99	)		--			--			(99	)
Foreign currency translation		911			1,317			356			2,584

September 30, 2012	$	203,262		$	42,330		$	10,999		$	256,591



Accumulated impairment:
December 31, 2011	$	(14,422	)	$	(27,878	)	$	(1,246	)	$	(43,546	)
Foreign currency translation		(116	)		(957	)		(26	)		(1,099	)

March 31, 2012		(14,538	)		(28,835	)		(1,272	)		(44,645	)
Foreign currency translation		141			716			28			885

June 30, 2012		(14,397	)		(28,119	)		(1,244	)		(43,760	)
Foreign currency translation		(214	)		(974	)		(27	)		(1,215	)

September 30, 2012	$	(14,611	)	$	(29,093	)	$	(1,271	)	$	(44,975	)

Net book value:
December 31, 2011	$	184,088		$	12,486		$	8,791		$	205,365

March 31, 2012	$	188,240		$	13,571		$	9,736		$	211,547

June 30, 2012	$	187,781		$	12,894		$	9,399		$	210,074

September 30, 2012	$	188,651		$	13,237		$	9,728		$	211,616

The Company's other intangible assets subject to amortization are as follows:

		September 30, 2012
	Weighted Average Life	Cost		Accumulated Amortization			Net

Customer relationships	13.7 years	$	58,297	$	(27,795	)	$	30,502
Digital images	5.0 years		450		(450	)		--
Developed technologies	3.0 years		712		(712	)		--
Non-compete agreements	3.5 years		883		(821	)		62
Trade names	3.9 years		1,476		(859	)		617
Contract acquisition cost	3.0 years		1,220		(1,220	)		--

	12.9 years	$	63,038	$	(31,857	)	$	31,181

		December 31, 2011
	Weighted Average Life	Cost		Accumulated Amortization			Net

Customer relationships	12.9 years	$	65,466	$	(23,757	)	$	41,709
Digital images	5.0 years		450		(450	)		--
Developed technologies	3.0 years		712		(712	)		--
Non-compete agreements	3.6 years		864		(774	)		90
Trade names	2.8 years		738		(707	)		31
Contract acquisition cost	3.0 years		1,220		(987	)		233

	12.4 years	$	69,450	$	(27,387	)	$	42,063

Other intangible assets were recorded at fair market value as of the dates of the acquisitions based upon independent third party appraisals. The fair values and useful lives assigned to customer relationship assets are based on the period over which these relationships are expected to contribute directly or indirectly to the future cash flows of the Company. The acquired companies typically have had key long-term relationships with Fortune 500 companies lasting 15 years or more. Because of the custom nature of the work that the Company does, it has been the Company's experience that clients are reluctant to change suppliers.

During the third quarter of 2012, the Company recorded impairment charges of $2,350 and $1,413, in the Americas and Europe operating segments, respectively, for customer relationship assets for which projected cash flows did not support the carrying values. The impairment charges are included in Impairment of long-lived assets in the Consolidated Statements of Comprehensive Income. See Note 6 – Impairment of Long-lived Assets and Insurance Recoveries for more information.

Amortization expense related to the other intangible assets totaled $1,349 and $4,125 for the three and nine-month periods ended September 30, 2012, respectively. Amortization expense related to the other intangible assets totaled $1,231 and $3,704 for the three and nine-month periods ended September 30, 2011, respectively. Amortization expense for each of the next five twelve-month periods beginning October 1, 2012, is expected to be approximately $4,161 for 2013, $4,156 for 2014, $4,030 for 2015, $3,963 for 2016, and $3,786 for 2017.

- 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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