NOTE 4—INTANGIBLE ASSETS

The following table summarizes acquired intangible assets as follows:

Amortization is computed on the straight-line method for financial reporting purposes based on amounts recorded at December 31, 2011. Amortization expense for intangibles was $0.5 million, $0.6 million and $2.5 million for 2011, 2010 and 2009, respectively. Amortization expense for each of the next five years is expected to amount to approximately $1.2 million each year from 2012 through 2014, $1.1 million each for both 2015 and 2016.

For indefinite-lived intangible assets, the impairment test consists of comparing the fair value, determined using the relief from royalty method, with its carrying amount. An impairment loss would be recognized for the carrying amount in excess of its fair value. For the year ended December 31, 2011, the Company recorded a $0.1 million impairment charge related to Trade Names assigned to the Company’s Test Systems reporting unit, as of the annual impairment test date of November 1. For the year ended December 31, 2010, the Company recorded no impairment charge to any of its indefinite-lived intangible assets. For the year ended December 31, 2009, the Company recorded a $0.7 million impairment charge related to Trade Names assigned to the Company’s Test Systems reporting unit. The impairment losses are reported on the Impairment Loss line of the Consolidated Statement of Operations. The balance of the indefinite lived intangible assets after the impairment charge is $1.0 million as of December 31, 2011.

Intangible assets that are amortized are evaluated for recoverability whenever adverse effects or changes in circumstances indicate that the carrying value may not be recoverable. The recoverability test consists of comparing the undiscounted projected cash flows with the carrying amount. Should the carrying amount exceed undiscounted projected cash flows, an impairment loss would be recognized to the extent the carrying amount exceeds fair value. For the years ended December 31, 2011 and 2010, the Company recorded no impairment charge to any of its amortizable intangible assets. For the year ended December 31, 2009, the Company recorded an impairment charge related to its amortizable intangible assets of its test systems reporting unit amounting to approximately $4.5 million, as of the annual impairment test date of November 1. The impairment loss is reported on the Impairment Loss line of the Consolidated Statement of Operations.