GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2011

GOODWILL AND INTANGIBLE ASSETS [Abstract]

9.	GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill and other intangible assets are allocated to the Company's reporting units at the date they are initially recorded. Goodwill and indefinite-lived intangible assets are not amortized but are subject to an annual (or under certain circumstances more frequent) impairment test based on their estimated fair value. Goodwill impairment testing is performed at the reporting unit level, one level below the business segment.

Finite-lived intangible assets that meet certain criteria continue to be amortized over their useful lives and are also subject to an impairment test based on estimated undiscounted cash flows when impairment indicators exist. The Company performs the required impairment test of goodwill in the fourth quarter or more frequently if events or changes in circumstances indicate that the carrying value may exceed the fair value.

The Company performed its annual impairment test for goodwill and other indefinite-lived intangible assets in the fourth quarter of 2011 and 2010 and affirmed that there were no events or circumstances that required a re-evaluation of goodwill as of December 31, 2011 and 2010. There have been no material changes to the methods of evaluating goodwill and intangible asset impairments during 2011.

In 2010 and 2011, the Company acquired the following intangible assets in various acquisitions that were determined to be business combinations. The goodwill recognized is expected to be deductible for income tax purposes. See Note 4 for further details.

(thousands)	Quality Hardwoods		Blazon		Praxis		AIA		Performance Graphics
Customer relationships	$	433	$	499	$	399	$	2,751	$	186
Non-compete agreements		190		296		30		312		76
Trademarks		-		-		-		641		48
Total other intangible assets		623		795		429		3,704		310
Goodwill		721		105		-		1,163		190
Total intangible assets	$	1,344	$	900	$	429	$	4,867	$	500

Goodwill

Changes in the carrying amount of goodwill for the years ended December 31, 2011 and 2010 by segment are as follows:

(thousands)	Manufacturing		Distribution		Total
Balance – January 1, 2010	$	2,140	$	-	$	2,140
Acquisitions		721		105		826
Balance – December 31, 2010		2,861		105		2,966
Acquisitions		1,353		-		1,353
Balance – December 31, 2011	$	4,214	$	105	$	4,319

Other Intangible Assets

Intangible assets are comprised of customer relationships, non-compete agreements and trademarks. Customer relationships and non-compete agreements represent finite-lived intangible assets that have been recorded in the Manufacturing and Distribution segments along with related amortization expense. As of December 31, 2011, the remaining intangible assets balance of $11.5 million is comprised of $2.1 million of trademarks which have an indefinite life, and therefore, no amortization expense has been recorded, and $9.4 million pertaining to customer relationships and non-compete agreements which are being amortized over periods ranging from 2 to 19 years. Amortization expense for intangible assets was $0.8 million, $0.6 million and $0.4 million for 2011, 2010 and 2009, respectively.

There was no impairment recognized for indefinite-lived intangible assets for the years ended December 31, 2011 and 2010 based on the results of the annual impairment analyses.

Other intangible assets, net consist of the following as of December 31, 2011 and 2010:

(thousands)	2011			2010
Trademarks	$	2,089		$	1,400
Customer relationships		10,268			6,932
Non-compete agreements		904			486
		13,261			8,818
Less: accumulated amortization		(1,746	)		(917	)
Other intangible assets, net	$	11,515		$	7,901

Changes in the carrying value of other intangible assets for the years ended December 31, 2011 and 2010 by segment are as follows:

(thousands)	Manufacturing			Distribution			Total
Balance - January 1, 2010	$	7,047		$	-		$	7,047
Acquisitions		623			795			1,418
Amortization		(503	)		(61	)		(564	)
Balance - December 31, 2010		7,167			734			7,901
Acquisitions		4,014			429			4,443
Amortization		(598	)		(231	)		(829	)
Balance - December 31, 2011	$	10,583		$	932		$	11,515

Amortization expense on finite-lived intangible assets for the next five years ending December 31 is estimated to be (in thousands): 2012 - $1,205; 2013 - $1,101; 2014 -$1,000; 2015 - $807; and 2016 - $740.

- 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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