GOODWILL AND INTANGIBLE ASSETS

The Company had goodwill of $5.0 million and $4.9 million at December 31, 2011 and 2010, respectively, all of which was associated with its electronic devices reporting unit.

The Company performed its annual impairment test for goodwill for the electronic devices reporting unit as of December 31, 2011 and 2010. In performing the valuations, the Company used cash flows that reflected management’s forecasts and discount rates that reflect the risks associated with the current market. The Company considers the results of an income approach in determining the fair value of the reporting units. In 2011, for the income approach a growth rate of 4.0% was assumed as a result of expected shipments on existing contracts and future opportunities. The Company discounted the projected cash flows at 12% to determine the fair value for the electronic devices reporting unit. Based on the results of this testing at December 31, 2011, the fair values of the electronic devices reporting unit exceeded its book values.

The following table reflects changes in the Company’s goodwill balances for continuing operations, by segment, for the year ended December 31, 2011 and 2010 (in thousands):



	Electronic Devices		Communications Equipment		Total
Balance at December 31, 2009	$	2,878	$	—	$	2,878
Allocation of goodwill to continuing operations	1,934		—		1,934
Foreign currency translation	119		—		119
Balance at December 31, 2010	4,931		—		4,931
Foreign currency translation	39		—		39
Balance at December 31, 2011	$	4,970	$	—	$	4,970

The increase in goodwill during 2010 was the result of the Company completing the sale of the ACC Operations, which allowed it to place a final fair value on that business unit. As a result, in accordance with FASB guidance, the Company adjusted its allocation of goodwill at the sale date between continuing operations and discontinued operations resulting in an additional $1.9 million allocated to the portion of the electronic devices reporting unit remaining in continuing operations.

Other intangible assets consist primarily of trademarks, trade names and technology acquired. The original cost and accumulated amortization of these intangible assets from continuing operations consisted of the following at December 31 (in thousands):



	2011									2010
	Electronic			Communications						Electronic			Communications
	Devices			Equipment			Total			Devices			Equipment			Total
Intangibles with definite lives:
Technology acquired	$	—		$	1,150		$	1,150		$	—		$	1,150		$	1,150
Customer relationships	—			200			200			—			200			200
Covenant-not-to-compete	200			—			200			200			—			200
Backlog	200			—			200			200			—			200
	400			1,350			1,750			400			1,350			1,750
Accumulated amortization	(400		)	(1,012		)	(1,412		)	(400		)	(877		)	(1,277		)
Carrying value	—			338			338			—			473			473
Intangibles with indefinite lives:
Trademarks and trade names	500			—			500			500			—			500
Total intangible assets, net	$	500		$	338		$	838		$	500		$	473		$	973

In accordance with FASB guidance for accounting for the impairment or disposal of long-lived assets, the Company reevaluates the carrying value of identifiable intangible and long-lived assets, except for trademarks and trade names, for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. No events or changes in circumstances occurred during 2011 or 2010 that would have required an impairment analysis to be performed.

Assuming no additions, disposals or adjustments are made to the carrying values and/or useful lives of the assets, annual amortization expense on intangible assets is estimated to be approximately $135,000 in 2012 and 2013 and $68,000 in 2014. The Company’s current intangible assets have a weighted average remaining useful life of approximately 2 years.