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Note 4 - Goodwill and Intangibles

12 Months Ended

Dec. 31, 2011

Goodwill and Intangible Assets Disclosure [Text Block]

4. Goodwill and Intangibles

As of December 31, 2010 and 2011, the acquired intangible assets related to the acquisitions of Color Edge, Comp 24, Crush, DCS, AdProps, and Fuel. Intangible assets, resulting primarily from these acquisitions accounted for under the purchase method of accounting, consist of the following (in thousands):

Definite Lived Intangible Assets

	December 31, 2010
	Acquired Value		Accumulated Amortization		Carrying Value		Weighted Average Amortization Period
Customer relationships	$	3,799	$	1,363	$	2,436		16
Non-compete agreements		4,087		4,072		15		5
Trade know how		1,341		810		531		8
Definite lived intangibles	$	9,227	$	6,245	$	2,982		13.0

	December 31, 2011
	Acquired Value		Accumulated Amortization		Carrying Value		Weighted Average Amortization Period
Customer relationships	$	3,799	$	1,608	$	2,191		16
Trade know how		1,341		977		364		8
Definite lived intangibles	$	5,140	$	2,585	$	2,555		13.0

Amortization expense is calculated on a straight line basis over the estimated useful life of the asset. The expense related to definite-lived intangible assets was $1,481, $666, and $427 for the years ended December 31, 2009, 2010, and 2011, respectively.

Estimated amortization expense on an annual basis for the succeeding five years is as follows:

For the year ended December 31,
	Amount
2012	$	413
2013		378
2014		308
2015		245
2016		245
Thereafter		966
	$	2,555

Indefinite Lived Intangible Assets

	December 31, 2010 and 2011
	Acquired Value		Current Year Impairment Charge		Cumulative Impairment Charges		Carrying Value
Trademark	$	10,609	$	-	$	4,419	$	6,190

In accordance with FASB ASC 350, the Company tests for goodwill impairment at least annually. The Company uses a measurement date of December 31. As a result of the annual impairment analysis, the Company recorded a non-cash goodwill impairment charge of $13,924 for the year ended December 31, 2009. The impairment was primarily attributable to weaker than expected financial performance and higher discount rates in both of the Company’s reporting units resulting in lower projected cash flows utilized in the discounted cash flow analysis. As of December 31, 2010 and 2011, the entire balance of goodwill was written off for the impaired reporting units.

The Company also performed the annual impairment test for indefinite-lived trademarks during the respective fourth fiscal quarters. The trademark impairment valuation is determined using the relief from royalty method. As a result of the impairment analysis for the year ended December 31, 2009, the Company recorded trademark impairment charges of $4,419 as a result of decreases in projected revenues and royalty rates for certain trademarks. There was no impairment charge for the years ended December 31, 2010 and 2011.

- 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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