64 operating results, but business plans, forecasts, general and industry trends and anticipated cash flows are also considered. Impairment is assessed when the undiscounted expected future cash flows derived from an asset are less than its carrying amount. Impairment losses are measured as the amount by which the carrying value of an asset exceeds its fair value and are recognized in earnings. The Company also continually evaluates the estimated useful lives of all long-lived assets and, when warranted, revises such estimates based on current events. As of December 31, 201 1, the Company had $ 5.5 million of property , plant and equipment within other non-current assets recorded as assets held for sale.  Held for sale assets are measured at the lower of its carrying amount or fair value less cost to sell and depreciation is ceased. Goodwill and Intangible Assets Goodwill and intangible assets with indefinite useful lives are not amortized, but are reviewed at least annually for impairment. Goodwill is allocated to various reporting units, which are generally an operating segment or one level below the operating segment. The Company compares the fair value of each reporting unit to its carrying amount to determine if there is potential goodwill impairment. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the fair value of the goodwill within the reporting unit is less than the carrying value of the goodwill. The impairment test for the Company’ s indefinite-lived intangible assets involves comparing the fair value of the intangibles to their carrying values. If the carrying amount of an intangible asset with an indefinite life exceeds its fair value, an impairment loss would be recognized in the amount equal to the excess. The Company completed its latest annual impairment test as of October 31, 2012. Our impairment testing for goodwill and indefinite-lived intangibles is performed separately . It has been determined that no impairment existed. The Company evaluates goodwill at a reporting unit level for impairment. In Step 1 of the goodwill impairment test, the Company compared the fair value of the reporting unit to its carrying amount, including goodwill. T o determine the fair value of the reporting unit, the Company employed an income and market-based approach with each being weighted equally . Under the income approach, the Company uses a discounted cash flow method to calculate the fair value based on the present value of estimated future cash flows. Assumptions used in the discounted cash flow method, such as forecasted operating results, expected growth rates, working capital needs, tax rates, and cost of capital, are based on the current market conditions and are consistent with internal management projections. The cost of capital rate selected is based on consideration of the risks inherent in the investment and market rates of return available from alternative investments of similar type and quality as of the valuation date. The guideline public company method is used for the market approach. The approach provides an estimate of value using multiples of earnings derived from the market values of publicly traded companies in the cable and wire industry . In addition to the selection of guideline companies, the market approach includes an analysis of the Company’ s financial and operating performance, risk, profitability , and growth as compared to the reporting unit. Using the income and market approach the fair value of the reporting unit’ s total assets exceeded the carrying value; therefore, no impairment was noted. A decrease of 5% in the estimated fair value of any of the Company’ s reporting units would have no impact on the carrying value of goodwill. As noted, our annual impairment test for both goodwill and indefinite lived intangibles assets indicated there was no impairment. However , future changes in judgments, assumptions and estimates that are used in our annual impairment testing, including discount and tax rates, future cash flow projections, or the long term growth rate could result in significantly dif ferent estimates of fair value; therefore, such changes could materially af fect the financial statements in any given year . Intangible assets that are not deemed to have an indefinite life, principally customer relationships, are amortized over their useful lives based on the expected economic benefit consistent with the historical customer attrition rates. Restructuring Accruals Over the last several years, the Company has incurred expenses as a result of cost management ef forts in Europe. The expenses primarily relate to employee termination benefits that are payable under the severance plan. In 2012 and 201 1 , the Company incurred $ 7.5 million and $5.3 million in char ges related to the substantial completion of negotiations with the works council of various operations in Europe to permanently reduce manufacturing personnel. The liability was recorded in accordance with ASC 450 - Contingencies ; when it is probable that a liability has been incurred and the amount of such liability is reasonably estimable. Management estimates must be applied to determine when it is appropriate to record restructuring accruals as well as assumptions in calculating the restructuring accruals as employees could choose to voluntarily leave the Company forfeiting termination benefits. T o the extent these assumptions and estimates change the Company could have future subsequent adjustments to the accrual balance. W arranty Accruals The Company provides service and product warranty policies on certain of its products. In accordance with ASC 450 - Contingencies, the Company accrues liabilities under service and warranty policies based upon specific claims and a review of historical warranty and service claim experience. Management estimates must be applied in determining the probability of specific T able of Contents