Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Other Intangible Assets [Abstract]

Note 7 - Goodwill and Other Intangible Assets

The Company's intangible assets not subject to amortization consist entirely of goodwill. Under current accounting guidance, 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, or when events or changes in business circumstances indicate that the carrying value may not be recoverable. The Company performs its annual impairment test as of October 1 each year.

The Company performed the required goodwill impairment tests for 2012 and 2011 as of October 1 of each year. The Company allocated its goodwill on a geographic basis to its operating segments, which were determined to be its reporting units for goodwill impairment testing. Using projections of operating cash flow for each reporting unit, the Company performed a step one assessment of the fair value of each reporting unit as compared to the carrying value of each reporting unit. The step one impairment analysis indicated no potential impairment of the assigned goodwill for either year.

The estimates and assumptions used by the Company to test its goodwill are consistent with the business plans and estimates used to manage operations and to make acquisition and divestiture decisions. The use of different assumptions could impact whether an impairment charge is required and, if so, the amount of such impairment. If the Company fails to achieve estimated volume and pricing targets, experiences unfavorable market conditions or achieves results that differ from its estimates, then revenue and cost forecasts may not be achieved, and the Company may be required to recognize impairment charges. Additionally, future goodwill impairment charges may be necessary if the Company's market capitalization decreases due to a decline in the trading price of the Company's common stock.

The changes in the carrying amount of goodwill by operating segment during the years ended December 31, 2012 and 2011 were as follows:

							Asia
	Americas			Europe			Pacific			Total
Cost:
December 31, 2010	$	192,231		$	35,854		$	9,241		$	237,326
Acquisitions		7,062			4,656			1,300			13,018
Additional purchase accounting adjustments		(355	)		--			--			(355	)
Foreign currency translation		(428	)		(146	)		(504	)		(1,078	)
December 31, 2011		198,510			40,364			10,037			248,911
Acquisitions		673			--			--			673
Additional purchase accounting adjustments		4,301			1,368			(430	)		5,239
Foreign currency translation		503			1,293			223			2,019

December 31, 2012	$	203,987		$	43,025		$	9,830		$	256,842

Accumulated impairment:
December 31, 2010	$	(14,523	)	$	(27,933	)	$	(1,244	)	$	(43,700	)
Foreign currency translation		101			55			(2	)		154
December 31, 2011		(14,422	)		(27,878	)		(1,246	)		(43,546	)
Foreign currency translation		(118	)		(1,251	)		(24	)		(1,393	)

December 31, 2012	$	(14,540	)	$	(29,129	)	$	(1,270	)	$	(44,939	)

Net book value:
December 31, 2010	$	177,708		$	7,921		$	7,997		$	193,626
December 31, 2011	$	184,088		$	12,486		$	8,791		$	205,365
December 31, 2012	$	189,447		$	13,896		$	8,560		$	211,903

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

		December 31, 2012
	Weighted Average Life	Cost		Accumulated Amortization			Net

Customer relationships	13.7 years	$	57,904	$	(28,894	)	$	29,010
Digital images	5.0 years		450		(450	)		--
Developed technologies	3.0 years		712		(712	)		--
Non-compete agreements	3.6 years		877		(821	)		56
Trade names	3.9 years		1,469		(892	)		577
Contract acquisition cost	3.0 years		1,220		(1,220	)		--

	13.0 years	$	62,632	$	(32,989	)	$	29,643

		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. During 2012, The Company's intangible assets decreased by $3,814 as a result of fair value adjustments related to purchase accounting for the Brandimage acquisition. 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 its experience that customers are reluctant to change suppliers.

During 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. During 2010 the Company recorded an impairment charge of $8 in the Americas operating segment for the remaining carrying value of a non-compete asset which no longer had value. The impairment charges are included in Impairment of long-lived assets in the Consolidated Statements of Comprehensive Income (Loss). See Note 6 – Impairment of Long-lived Assets and Insurance Recoveries for more information.

Amortization expense was $5,208, $5,165 and $4,556 for 2012, 2011 and 2010, respectively. Amortization expense for each of the next five years is expected to be approximately $4,102 for 2013 and 2014, $3,925 for 2015, $3,874 for 2016 and $3,668 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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