XML 29 R12.htm IDEA: XBRL DOCUMENT

Note 4 - Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Text Block]

(4)

GOODWILL AND INTANGIBLE ASSETS

We have three operating segments which are also our reporting units: Electronic Test, Environmental Technologies and Process Technologies. Goodwill and intangible assets on our balance sheets are the result of our acquisitions.

Goodwill

Changes in the amount of the carrying value of goodwill for the years ended December 31, 2023 and 2022 are as follows:

Balance - January 1, 2022	$	21,448
Adjustments to preliminary amounts recorded in the fourth quarter of 2021 (see Note 3 to the consolidated financial statements in our 2022 Form 10-K)		451
Impact of foreign currency translation adjustments		(294	)
Balance - December 31, 2022		21,605
Impact of foreign currency translation adjustments		123
Balance - December 31, 2023	$	21,728

Goodwill was comprised of the following at December 31, 2023 and 2022:

	December 31,
	2023		2022
Electronic Test	$	3,436	$	3,369
Environmental Technologies		1,817		1,817
Process Technologies		16,475		16,419
Total Goodwill	$	21,728	$	21,605

Intangible Assets

Changes in the amount of the carrying value of indefinite-lived intangible assets for the year ended December 31, 2023 and 2022 are as follows:

Balance - January 1, 2022	$	8,428
Adjustments to preliminary amounts recorded in the fourth quarter of 2021 (see Note 3 to the consolidated financial statements in our 2022 Form 10-K)		20
Impact of foreign currency translation adjustments		(79	)
Balance - December 31, 2022		8,369
Impact of foreign currency translation adjustments		29
Balance - December 31, 2023	$	8,398

Changes in the amount of the carrying value of finite-lived intangible assets for the years ended December 31, 2023 and 2022 are as follows:

Balance - January 1, 2022	$	13,206
Adjustments to preliminary amounts recorded in the fourth quarter of 2021 (see Note 3 to the consolidated financial statements in our 2022 Form 10-K)		29
Impact of foreign currency translation adjustments		(351	)
Amortization		(2,694	)
Balance - December 31, 2022		10,190
Impact of foreign currency translation adjustments		102
Amortization		(2,094	)
Balance - December 31, 2023	$	8,198

The following tables provide further detail about our intangible assets at December 31, 2023 and 2022:

	December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	16,407	$	9,687	$	6,720
Technology		2,895		1,417		1,478
Patents		590		590		-
Backlog		499		499		-
Software		270		270		-
Trade name		140		140		-
Total finite-lived intangible assets		20,801		12,603		8,198
Indefinite-lived intangible assets:
Trademarks		8,398		-		8,398
Total intangible assets	$	29,199	$	12,603	$	16,596

	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	16,313	$	7,990	$	8,323
Technology		2,855		988		1,867
Patents		590		590		-
Backlog		492		492		-
Software		270		270		-
Trade name		140		140		-
Total finite-lived intangible assets		20,660		10,470		10,190
Indefinite-lived intangible assets:
Trademarks		8,369		-		8,369
Total intangible assets	$	29,029	$	10,470	$	18,559

We generally amortize our finite-lived intangible assets over their estimated useful lives based on the pattern in which the economic benefits of the intangible assets are expected to be consumed, or on a straight-line basis, if an alternate amortization method cannot be reliably determined. Any such alternate amortization method would be based on the pattern in which the economic benefits of the intangible asset are expected to be consumed. None of our intangible assets have any residual value.

The following table sets forth the estimated annual amortization expense for each of the next five years:

2024	$	1,973
2025	$	1,774
2026	$	1,163
2027	$	667
2028	$	534

Impairment of Goodwill and Indefinite Life Intangible Assets

During October 2023 and 2022, we assessed our goodwill and indefinite life intangible asset for impairment in accordance with the requirements of ASC Topic 350 using a quantitative approach. Our goodwill impairment assessment is based upon the income approach, which estimates the fair value of our reporting units based upon a discounted cash flow approach. This fair value is then reconciled to our market capitalization at year end with an appropriate control premium. The discount rate used in 2023 for the discounted cash flows ranged between 14.5% and 16.0% depending on the reporting unit. The discount rate used in 2022 for the discounted cash flows ranged between 16.5% and 18.0% depending on the reporting unit. The selection of the rates in each year was based upon our analysis of market-based estimates of capital costs and discount rates. The determination of the fair value of our reporting units requires management to make significant estimates and assumptions including the selection of control premiums, discount rates, terminal growth rates, forecasts of revenue and expense growth rates, income tax rates, changes in working capital, depreciation, amortization and capital expenditures. Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact on either the fair value of the reporting unit or the amount of the goodwill impairment charge.

During the goodwill impairment assessment in both 2023 and 2022, we compared the fair value of our reporting units with their carrying values. This assessment indicated no impairment existed as the fair value of the reporting units exceeded their carrying values in both 2023 and 2022.

During the indefinite life intangible asset impairment assessment in both 2023 and 2022, we compared the fair value of our indefinite life intangible assets with their carrying values. This assessment indicated no impairment existed as the fair value of the indefinite life intangible assets exceeded their carrying values in both 2023 and 2022.

Impairment of Long-Lived Assets and Finite-lived Intangible Assets

During 2023 and 2022, we did not review any of our long-lived assets for impairment as there were no events or changes in business circumstances that would indicate an impairment might exist.