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Note 3 - Goodwill and Intangible Assets
6 Months Ended
Jun. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]

3.        GOODWILL AND 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. The Company’s Manufacturing segment includes goodwill originating from the acquisitions of Gravure Ink (acquired in the Adorn Holdings, Inc. (“Adorn”) acquisition), Quality Hardwoods Sales (“Quality Hardwoods”), A.I.A. Countertops, LLC (“AIA”), Infinity Graphics, Décor Mfg., LLC (“Décor”), Creative Wood Designs, Inc. (“Creative Wood”), and Middlebury Hardwood Products, Inc. (“Middlebury Hardwoods”). While Gravure Ink, AIA, Infinity Graphics, Décor, Creative Wood and Middlebury Hardwoods remain reporting units of the Company for which impairment is assessed, Quality Hardwoods is assessed for impairment as part of the Company’s hardwood door reporting unit. The Company’s Distribution segment includes goodwill originating from the acquisition of Blazon International Group (“Blazon”), which remains a reporting unit for which impairment is assessed.


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. No impairment was recognized during the second quarter and six months ended June 30, 2013. There have been no material changes to the method of evaluating goodwill impairment during the second quarter of 2013. The Company does not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions used to determine impairment in the foreseeable future.


Goodwill 


As of June 30, 2013 and December 31, 2012, the $10.4 million carrying amount for goodwill is comprised of $10.3 million attributable to the Manufacturing segment and $0.1 million attributable to the Distribution segment.


Other Intangible Assets


As of June 30, 2013, the remaining intangible assets balance of $18.2 million is comprised of $3.5 million of trademarks which have an indefinite life, and therefore, no amortization expense has been recorded, and $14.7 million pertaining to customer relationships and non-compete agreements which are being amortized over periods ranging from 1 to 19 years.


Other intangible assets, net consist of the following as of June 30, 2013 and December 31, 2012:


(thousands)

June 30,

2013

   

Dec. 31,

2012

 

Trademarks

$ 3,504     $ 3,504  

Customer relationships

  17,228       17,228  

Non-compete agreements

  1,756       1,756  
    22,488       22,488  

Less: accumulated amortization

  (4,309 )     (3,269 )

Other intangible assets, net

$ 18,179     $ 19,219  

Changes in the carrying value of other intangible assets for the six months ended June 30, 2013 by segment are as follows:


(thousands)

Manufacturing

   

Distribution

   

Total

 

Balance – December 31, 2012

$ 18,242     $ 977     $ 19,219  

Amortization

  (884 )     (156 )     (1,040 )

Balance – June 30, 2013

$ 17,358     $ 821     $ 18,179