Goodwill and Other Intangibles

12 Months Ended

Mar. 31, 2012

Intangible Assets, Goodwill and Other

The Company tests the carrying amount of goodwill annually as of the first day of the last quarter of the fiscal year and whenever events or circumstances indicate that impairment may have occurred. The Company evaluated its goodwill for impairment during fiscal 2012, 2011 and 2010 and determined that no impairment was required.

The carrying value of other intangible assets as of March 31, 2012 represents customer relationship, production and supply contracts and internally developed software. These intangible assets were determined by management to meet the criterion for recognition apart from goodwill and have finite lives. The Company uses judgment in assessing whether the carrying amount of its intangible assets is not expected to be recoverable over their estimated remaining useful lives. Amortization expense associated with these intangible assets was $5,804, $5,094 and $5,618 for the years ended March 31, 2012, 2011 and 2010, respectively and is recorded in Selling, General and Administrative Expenses.

The Company began implementing a new ERP system in fiscal 2008 and capitalized certain costs into tangible assets within the consolidated balance sheet in accordance with generally accepted accounting principles. As of March 31, 2012, the Company has implemented the ERP system in most of the operations subsidiaries around the world and incurred $15,942 of capitalizable costs associated with the implementation. Amortization of the final accumulated costs of each implemented location is over a five year useful life. There was an additional $642 of capitalizable costs related to other internally developed software projects that were subsequently written off in fiscal 2012 due to impairment.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Alliance One International, Inc. and Subsidiaries

(in thousands)

Note 5 – Goodwill and Other Intangibles (continued)

Goodwill and Intangible Asset Rollforward:



	Unamortizable Goodwill		Amortizable Intangibles
	Other Regions Segment		Customer Relationship Intangible			Production and Supply Contract Intangibles			Internally Developed Software Intangible			Total
Weighted average remaining useful life in years as of March 31, 2012			13			4			2
March 31, 2010 balance:
Gross carrying amount	$	2,794	$	33,700		$	7,893		$	14,459		$	58,846
Accumulated amortization	—		(8,214		)	(1,452		)	(4,189		)	(13,855		)
Net March 31, 2010 balance	2,794		25,486			6,441			10,270			44,991
Additions	—		—			—			1,308			1,308
Amortization expense	—		(1,685		)	(496		)	(2,913		)	(5,094		)
Net March 31, 2011 balance	2,794		23,801			5,945			8,665			41,205
Additions	—		—			—			821			821
Impairment / other	—		—			—			(357		)	(357		)
Amortization expense	—		(1,685		)	(1,095		)	(3,024		)	(5,804		)
Net March 31, 2012 balance	$	2,794	$	22,116		$	4,850		$	6,105		$	35,865

Estimated Intangible Asset Amortization Expense:



For Fiscal Years Ended	Customer Relationship Intangible		Production and Supply Contract Intangible		Internally Developed Software Intangible *		Total
2013	$	1,685	$	1,251	$	3,189	$	6,125
2014	1,685		1,251		1,750		4,686
2015	1,685		1,173		534		3,392
2016	1,685		1,175		404		3,264
2017	1,685		—		228		1,913
Later	13,691		—		—		13,691
	$	22,116	$	4,850	$	6,105	$	33,071

* Estimated amortization expense for the internally developed software is based on costs accumulated as of March 31, 2012.
These estimates will change as new costs are incurred and until the software is placed into service in all locations.

- 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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