Note 5 - Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

(5) 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 three months ended March 31, 2024 are as follows:

Balance - January 1, 2024	$	21,728
Acquisition of Alfamation		11,796
Impact of foreign currency translation adjustments		(246	)
Balance - March 31, 2024	$	33,278

Goodwill was comprised of the following at March 31, 2024 and December 31, 2023:

	March 31,		December 31,
	2024		2023
Electronic Test	$	15,026	$	3,436
Environmental Technologies		1,817		1,817
Process Technologies		16,435		16,475
Total goodwill	$	33,278	$	21,728

Intangible Assets

Changes in the amount of the carrying value of indefinite-lived intangible assets for the three months ended March 31, 2024 are as follows:

Balance - January 1, 2024	$	8,398
Acquisition of Alfamation		3,399
Impact of foreign currency translation adjustments		(66	)
Balance - March 31, 2024	$	11,731

Changes in the amount of the carrying value of finite-lived intangible assets for the three months ended March 31, 2024 are as follows:

Balance - January 1, 2024	$	8,198
Acquisition of Alfamation		9,688
Impact of foreign currency translation adjustments		(203	)
Amortization		(595	)
Balance - March 31, 2024	$	17,088

Intangible assets were allocated to our reporting segments at March 31, 2024 and December 31, 2023 as follows:

	March 31,		December 31,
	2024		2023
Electronic Test		16,357		3,728
Environmental Technologies		796		794
Process Technologies		11,666		12,074
Total intangible assets	$	28,819	$	16,596

The following tables provide further detail about our intangible assets as of March 31, 2024 and December 31, 2023:

	March 31, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	22,202	$	10,082	$	12,120
Technology		3,195		1,504		1,691
Patents		590		590		-
Backlog		3,851		574		3,277
Software		270		270		-
Trade name		140		140		-
Total finite-lived intangible assets		30,248		13,160		17,088
Indefinite-lived intangible assets:
Trademarks		11,731		-		11,731
Total intangible assets	$	41,979	$	13,160	$	28,819

	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

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 (remainder)	$	4,384
2025	$	2,863
2026	$	1,577
2027	$	1,083
2028	$	952