USANA Health Sciences, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Intangible Assets

Intangible Assets

12 Months Ended

Dec. 31, 2011

NOTE G – INTANGIBLE ASSETS

Goodwill and intangible assets are tested annually for impairment, or more frequently if impairment indicators are present. Such indicators of impairment include, but are not limited to, changes in business climate, and operating or cash flow losses related to such assets. Goodwill and indefinite lived intangible assets are not amortized. Definite lived intangibles are amortized over their related useful lives.

No events have occurred subsequent to any of our acquisitions that have resulted in an impairment of the original goodwill or intangible asset amounts that were initially recorded from the transactions. Goodwill is as follows:


	January 1, 2011		Currency translation adjustments		December 31, 2011



North America	$	6,390	$	-	$	6,390
Asia Pacific		10,877		473		11,350
	$	17,267	$	473	$	17,740

Intangible assets are as follows:


	As of January 1, 2011
	Gross carrying amount		Accumulated amortization			Net carrying amount		Weighted-average amortization period (years)


Amortized intangible assets
Trade name and trademarks	$	4,025	$	(151	)	$	3,874	10
Customer relationships		1,961		(245	)		1,716	3
		5,986		(396	)		5,590

Unamortized intangible assets
Product formulas		8,875					8,875
Direct sales license		27,450					27,450
		36,325					36,325

	$	42,311				$	41,915


	As of December 31, 2011							Weighted-average amortization period (years)
	Gross carrying amount		Accumulated amortization			Net carrying amount


Amortized intangible assets
Trade name and trademarks	$	4,200	$	(577	)	$	3,623	10
Customer relationships		2,046		(938	)		1,108	3
		6,246		(1,515	)		4,731

Unamortized intangible assets
Product formulas		9,261					9,261
Direct sales license		28,645					28,645
		37,906					37,906

	$	44,152				$	42,637


Aggregate amortization expense:
Year ended December 31, 2011	$	1,515

Estimated Amortization Expense:
2012	$	1,102
2013		846
2014		420
2015		420
2016		420
Thereafter		1,523
	$	4,731

- 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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