Quarterly report pursuant to Section 13 or 15(d)

Note 2 - Goodwill, Customer Relationships and Other Intangible Assets

v2.4.0.8
Note 2 - Goodwill, Customer Relationships and Other Intangible Assets
6 Months Ended
Sep. 29, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]

Note 2 – Goodwill, Customer Relationships and Other Intangible Assets


Goodwill: Goodwill represents the excess of the purchase price over the fair value of net identifiable assets acquired in business combinations. The goodwill of the reporting units of the Company as of September 29, 2013 and March 31, 2013 amounted to $24.0 million, and is reflected in the accompanying consolidated balance sheets net of accumulated impairment charges of $22.9 million, for a net reported balance of $1.1 million.


The Company tests the fair value of the goodwill, if any, within 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 (defined as having a likelihood of greater than 50%) fallen below its carrying value. The annual or interim impairment test is performed by first assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If such qualitative factors so indicate, then the impairment test is continued 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 1, 2013, and the Company concluded that the fair value of the goodwill of the Company’s reporting units substantially exceeded their carrying values as of that date.


Other Intangible Assets: Other intangible assets as of September 29, 2013 consisted primarily of the fair value of net identifiable assets acquired in business combinations, other than tangible assets and goodwill. The carrying amount and accumulated amortization of the Company’s other intangible assets as of September 29, 2013, their weighted average estimated useful life, the amortization expense for the three and six-month periods ended September 29, 2013 and September 30, 2012 and the classification of such amortization expense within the accompanying consolidated statements of income are as follows (in thousands):


         

Weighted

Average

Estimated

          Amortization Expense  
         

Useful

         

Three-Month Periods Ended

   

Six-Month Periods Ended

 
   

Carrying

Amount

   

Life

(Years)

   

Accumulated

Amortization

   

September 29,

2013

   

September 30,

2012

   

September 29,

2013

   

September 30,

2012

 

Tradename and trademarks

  $ 1,987       15     $ 602     $ 33     $ 43     $ 66     $ 79  

Licenses and designs

    3,571       3       3,571       -       2       2       4  

Non-compete covenants

    454       7       364       14       14       28       28  

Patents

    1,601       17       189       18       14       32       28  

Customer relationships

    5,411       12       2,661       121       121       241       242  

Total other intangible assets

  $ 13,024       10     $ 7,387     $ 186     $ 194     $ 369     $ 381  

Classification within the accompanying consolidated statements of income:

                               

Cost of products sold

  $ 14     $ 16     $ 30     $ 32  

Marketing and administrative expenses

    172       178       339       349  

Total amortization expense

  $ 186     $ 194     $ 369     $ 381