Goodwill And Intangible Assets

12 Months Ended

Mar. 31, 2012

Goodwill And Intangible Assets [Abstract]

(7)

GOODWILL AND INTANGIBLE ASSETS

Goodwill is not amortized and the Company tests goodwill annually, as of the last day of February of each fiscal year, for impairment by comparing the fair value of the reporting unit goodwill to its carrying amount. Impairment is also tested when events or changes in circumstances indicate that the assets' carrying values may be greater than the fair values. Intangible assets with definite useful lives are amortized over periods of up to twenty years based on a number of assumptions including estimated period of economic benefit and utilization. Intangible assets are also tested for impairment when events or changes in circumstances indicate that the assets' carrying values may be greater than the fair values.

The Company completed its annual goodwill impairment test in the fourth quarter of fiscal 2012. The first step of the impairment review compares the fair value of the Company to the carrying value. The fair value was independently calculated by American Appraisal as of February 29, 2012 by calculating Multi-Color's marketable control equity value and comparing it to the Company's book value of equity. The result of the first step did not indicate potential impairment as the estimated fair value of its reporting unit exceeded the carrying value by approximately $100,000. As a result, the second step of the impairment test was not required.

Goodwill movements consisted of:


Balance at March 31, 2010	$	117,120
Acquisition of CentroStampa		23,405
Acquisition of Monroe Etiquette		3,742
Currency translation		14,286

Balance at March 31, 2011	$	158,553
Acquisition of La Cromografica		3,488
Acquisition of WDH		6,709
Acquisition of York		177,705
Other acquisitions		938
Currency translation		(5,204	)

Balance at March 31, 2012	$	342,189

See Note 3 to our consolidated financial statements for further information regarding the acquisitions of CentroStampa, Monroe Etiquette, La Cromografica, WDH and York.

Intangible assets as of March 31, 2012 consisted of the following:


	Balance at cost at March 31, 2011		Fiscal 2012 Acquisitions		Foreign Exchange			Intangibles at Cost		Accumulated Amortization			Net Intangibles at March 31, 2012
Customer relationships	$	42,064	$	85,631	$	(373	)	$	127,322	$	(12,858	)	$	114,464
Technologies		1,620		—		(12	)		1,608		(903	)		705
Trademarks		573		142		(10	)		705		(638	)		67
Licensing intangible		2,582		—		(114	)		2,468		(876	)		1,592

	$	46,839	$	85,773	$	(509	)	$	132,103	$	(15,275	)	$	116,828

Intangible assets as of March 31, 2011 consisted of the following:


	Balance at cost at March 31, 2010		CentroStampa/ Monroe Etiquette Acquisitions		Foreign Exchange		Intangibles at Cost		Accumulated Amortization			Net Intangibles at March 31, 2011
Customer relationships	$	20,790	$	17,781	$	3,493	$	42,064	$	(7,517	)	$	34,547
Technologies		1,537		—		83		1,620		(661	)		959
Trademarks		—		515		58		573		(271	)		302
Licensing intangible		—		2,246		336		2,582		(370	)		2,212

	$	22,327	$	20,542	$	3,970	$	46,839	$	(8,819	)	$	38,020

The intangible assets were established in connection with completed acquisitions. They are amortized, using the straight-line method, over their estimated useful lives based on a number of assumptions including customer attrition rates, percentage of revenue attributable to technologies, royalty rates and projected future revenue growth. The weighted average amortization period for these assets is 17 years. Total amortization expense for 2012, 2011 and 2010 was $6,456, $3,321 and $1,832, respectively.

The estimated useful lives for each intangible asset class are as follows:


Customer relationships			7 to 20 years
Technologies			7 to 8 years
Trademarks			1 to 2 years
Licensing Intangible			5 years

The annual estimated amortization expense for future years is as follows:


Fiscal 2013	$	8,383
Fiscal 2014		8,131
Fiscal 2015		8,111
Fiscal 2016		7,520
Fiscal 2017		7,397
Thereafter		77,286

Total	$	116,828

- 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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