Goodwill and Intangibles

3 Months Ended

12 Months Ended

Mar. 31, 2013

Dec. 31, 2012

Note 5—Goodwill and Intangibles

Goodwill and Indefinite Lived Intangible Assets

We evaluate goodwill and indefinite-lived intangible assets for impairment annually and whenever events or changes in circumstances suggest that the carrying value of goodwill and indefinite-lived intangible assets may not be recoverable. We utilize internally developed models to estimate our expected future cash flow and utilize a discounted cash flow technique to estimate the fair value of the Company in connection with our evaluation of goodwill and indefinite-lived intangible assets. No impairment of goodwill and indefinite-lived intangible assets resulted from our most recent evaluation of goodwill and indefinite-lived intangible assets for impairment, which occurred in the fourth quarter of 2012, nor do we believe any indicators of impairment have occurred. Our next annual impairment assessment will be conducted in the fourth quarter of 2013.

The following is a roll-forward of goodwill as of March 31, 2013:

Balance at December 31, 2012	$	226,749
Acquisition of LBM	26,258
Balance at March 31, 2013	$	253,007

Intangible Assets

We review identified intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Recoverability of these assets is measured by comparison of their carrying value to future undiscounted cash flows that the assets are expected to generate over their remaining economic lives. If such assets are considered to be impaired, the impairment to be recognized in the statement of operations is the amount by which the carrying value of the assets exceeds their fair value, determined by either a quoted market price, if any, or a value determined by utilizing a discounted cash flow technique. There were no impairments recorded during the three months ended March 31, 2013.

Intangible assets at March 31, 2013 consisted of the following:

	Estimated useful life	Weighted average remaining life	Gross cost		Accumulated amortization		Net
Customer relationships	Up to 10 years	3.7	$	110,823	$	66,019	$	44,804
Technology-based intangible assets	3 to 5 years	2.8	5,341		1,928		3,413
Non-compete agreements	2 years	1.9	2,767		115		2,652
Trade names	4 years	2.7	704		15		689
Trade names - indefinite	Indefinite	Indefinite	16,100		—		16,100
			$	135,735	$	68,077	$	67,658

Future amortization expense of our intangible assets for the next five years and thereafter is expected to be as follows:

	Remainder of 2013		2014		2015		2016		2017		2018		Thereafter
Amortization	$	11,812	$	11,875	$	8,803	$	6,503	$	5,176	$	4,335	$	3,054

Note 6—Goodwill and Intangibles

Goodwill and Indefinite-Lived Intangible Assets

Intangible Assets

Intangible assets at December 31, 2012 consisted of the following:

	Estimated useful life		Gross cost		Accumulated amortization		Net

Customer relationships	Up to 10 years	2.6	$	98,749	$	63,055	$	35,694
Technology-based intangible assets	5 years	1.0		2,198		1,652		546
Trade names	Indefinite	Indefinite		16,100		—		16,100

			$	117,047	$	64,707	$	52,340

Future amortization expense of our intangible assets for the next five years is expected to be as follows:

		2013			2014			2015			2016			2017			Thereafter

Amortization		$	11,497		$	7,571		$	5,652		$	4,435		$	3,425		$	3,660

- 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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