Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Goodwill, Customer Relationships and Other Intangible Assets

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Note 7 - Goodwill, Customer Relationships and Other Intangible Assets
6 Months Ended
Oct. 02, 2011
Goodwill and Intangible Assets Disclosure [Text Block]
Note 7 – Goodwill, Customer Relationships and Other Intangible Assets

Goodwill:  The Company reported goodwill of $1.1 million at April 3, 2011 and October 2, 2011.  The Company tests the fair value of the goodwill of its reporting units annually as of the first day of the Company’s fiscal year.  An additional interim impairment test is performed during the year whenever an event or change in circumstances occurs that suggests that the fair value of the goodwill of either of the reporting units of the Company has more likely than not fallen below its carrying value.  The annual or interim impairment test is performed in a two-step approach.  The first step is the estimation of the fair value of each reporting unit to ensure that its fair value exceeds its carrying value.  If step one indicates that a potential impairment exists, then the second step is performed to measure the amount of an impairment charge, if any.  In the second step, these estimated fair values are used as the hypothetical purchase price for the reporting units, and an allocation of such hypothetical purchase price is made to the identifiable tangible and intangible assets and assigned liabilities of the reporting units.  The impairment charge is calculated as the amount, if any, by which the carrying value of the goodwill exceeds the implied amount of goodwill that results from this hypothetical purchase price allocation.

The annual impairment test of the fair value of the goodwill of the reporting units of the Company was performed as of April 4, 2011, and the Company concluded that the fair value of the goodwill of the Company’s reporting units exceeded their carrying values as of that date.

Other Intangible Assets:  Other intangible assets at October 2, 2011 consisted primarily of the capitalized costs of recent acquisitions, other than tangible assets, goodwill and assumed liabilities.  The carrying amount and accumulated amortization of the Company’s other intangible assets as of October 2, 2011, their estimated useful life and amortization expense for the three and six-month periods ended October 2, 2011 and September 26, 2010 are as follows (dollar amounts in thousands):

         
 
       
Amortization Expense
 
         
Estimated
 
 
   
Three-month Periods Ended
   
Six-month Periods Ended
 
     
Carrying
Amount
 
Useful
Life
 
Accumulated
Amortization
   
October 2,
2011
   
September 26,
 2010
   
October 2,
2011
   
September 26,
 2010
 
                                         
Kimberly Grant Acquisition on December 29, 2006:
                             
 
Tradename
  $ 466  
15 years
  $ 148     $ 8     $ 8     $ 16     $ 16  
 
Existing designs
    36  
1 year
    36       -       -       -       -  
 
Non-compete covenant
    98  
15 years
    31       1       1       3       3  
Total Kimberly Grant Acquisition
    600  
14 years *
    215       9       9       19       19  
                                                     
Springs Baby Products Acquisition on November 5, 2007:
                                 
 
Licenses & existing designs
    1,655  
2 years
    1,655       -       -       -       -  
 
Licenses & future designs
    1,847  
4 years
    1,808       115       116       230       231  
 
Non-compete covenant
    115  
4 years
    112       7       8       14       15  
 
Customer relationships
    3,781  
10 years
    1,482       95       94       190       189  
Total Springs Baby Acquisition
    7,398  
7 years *
    5,057       217       218       434       435  
                                                     
Neat Solutions Acquisition on July 2, 2009:
                                       
 
Trademarks
    892  
15 years
    134       15       14       30       29  
 
Designs
    33  
4 years
    18       2       3       4       5  
 
Non-compete covenant
    241  
5 years
    108       12       12       24       24  
 
Customer relationships
    1,302  
16 years
    183       21       21       41       41  
Total Neat Solutions Acquisition
    2,468  
14 years *
    443       50       50       99       99  
                                                     
Bibsters® Acquistion on May 27, 2010:
                                           
 
Trademarks
    629  
15 years
    56       11       10       21       14  
 
Patents
    553  
10 years
    74       14       13       28       18  
 
Customer relationships
    328  
14 years
    32       6       6       12       8  
Total Bibsters® Acquistion
    1,510  
13 years *
    162       31       29       61       40  
Internally developed intangible assets
    133  
10 years
    30       2       3       4       5  
 
Total other intangible assets
  $ 12,109       $ 5,907     $ 309     $ 309     $ 617     $ 598  

* Weighted-Average