Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2013

Goodwill and Intangible Assets [Abstract]

Note 9 – Goodwill and 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 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-month period ended March 31, 2013, were as follows:

							Asia
	Americas			Europe			Pacific			Total
Cost:
December 31, 2012	$	203,987		$	43,025		$	9,830		$	256,842
Foreign currency translation		(446	)		(2,235	)		(35	)		(2,716	)

March 31, 2013	$	203,541		$	40,790		$	9,795		$	254,126

Accumulated impairment:
December 31, 2012	$	(14,540	)	$	(29,129	)	$	(1,270	)	$	(44,939	)
Foreign currency translation		105			1,689			(6	)		1,788

March 31, 2013	$	(14,435	)	$	(27,440	)	$	(1,276	)	$	(43,151	)

Net book value:
December 31, 2012	$	189,447		$	13,896		$	8,560		$	211,903

March 31, 2013	$	189,106		$	13,350		$	8,519		$	210,975

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

		March 31, 2013
	Weighted Average Life	Cost		Accumulated Amortization			Net

Customer relationships	13.7 years	$	56,908	$	(29,396	)	$	27,512
Digital images	5.0 years		450		(450	)		--
Developed technologies	3.0 years		712		(712	)		--
Non-compete agreements	3.6 years		868		(816	)		52
Trade names	3.9 years		1,441		(916	)		525
Contract acquisition cost	3.0 years		1,220		(1,220	)		--

	12.9 years	$	61,599	$	(33,510	)	$	28,089

		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

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 first quarter of 2013, the Company recorded impairment charges of $27 and $9, for customer relationship and trade name assets, respectively, in the Asia Pacific operating segment. The impairment charges reflect the Company's decision to close the Seoul, Korea office acquired in its 2011 Brandimage acquisition. 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 $1,049 and $1,355 for the three-month periods ended March 31, 2013 and March 31, 2012, respectively. Amortization expense for each of the next five twelve-month periods beginning April 1, 2013, is expected to be approximately $4,031 for 2014, $3,991 for 2015, $3,851 for 2016, $3,774 for 2017, and $3,543 for 2018.

- 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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