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Friday, August 22, 2014 10:17:52 AM
The $44.3M impairment recorded this quarter removed most of the goodwill and half of the intangible assets from FSYS' balance sheet... i.e. Goodwill was reduced to $7.5M from $48.9M and Intangible Assets were reduced to $8.6M from $11.8M.
A Goodwill impairment of $36M was attributed to FSS Automotive in Italy; $4M was attributed to FSS Industrial in Canada & the Netherlands. Intangibles were reduced relatively evenly across the technology, customer relationships, & Trade name categories.
One short term advantage of the long-lived asset impairment is that it produced a tax benefit of $1.1M.... Of course, this savings will be reversed if the impaired property is divested.
I suspect that the timing of the impairment is correlated to the closure of the Livorno automotive conversion facilities due to the trend towards lower DOEM volumes; albeit, I believe the impairment greatly exceeded that specific to Livorno.
The reason for the impairment stated in this quarter's 10Q is:
2014 Q2 10-Q: http://www.sec.gov/Archives/edgar/data/1340786/000156459014003843/fsys-10q_20140630.htm
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