Note 13 - Restructuring and Impairment Charges

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

13.

     RESTRUCTURING AND IMPAIRMENT CHARGES

During the

fourth

quarter of

2019,

the Company completed the sale of its largest group within the Power and Electromechanical segment. The remaining assets remain held-for-sale. However, in conjunction with that sale, it was concluded that should the remaining power and electromechanical operations

not

sell, the Company will fulfill its backlog obligations and wind down the remaining operations of CUI-Canada and CUI Japan during

2020.

As such, the Company has recorded an accrued liability of

$3.1

million for estimated employee termination costs. The termination costs are expected to begin during

2020

based around backlog production and delivery schedule requirements. The lease for the CUI-Canada facility completes during

2020

and the CUI Japan lease includes a

four

-month notice period to terminate. During the

fourth

quarter of

2019,

the Company performed an impairment assessment for the remaining power and electromechanical assets, resulting in

$0.3

million of impairments associated with CUI-Canada goodwill, CUI-Japan goodwill, and certain CUI-Canada acquisition intangibles that were written off.