Note 7 - Long-lived Assets

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Property, Plant, and Equipment and Intangible Assets [Text Block]

7. LONG-LIVED ASSETS

The cost basis and estimated lives of property and equipment from continuing operations as of December 31, 2021 and 2020 are as follows:

	As of December 31,
	2021			2020			Life (in years)
Land	$	1,423		$	1,423
Buildings		20,778			20,778			39
Machinery and equipment		116,725			113,266			2 - 10
Office furniture and equipment		5,480			5,099			3 - 7
Leasehold improvements		8,937			9,305		Shorter of asset life or life of lease
Construction in progress		677			502
		154,020			150,373
Less accumulated depreciation and amortization		(110,365	)		(105,178	)
Total property and equipment	$	43,655		$	45,195

As of December 31, 2021 and December 31, 2020, the Company had commitments of $1,227 and $463, respectively, related to the completion of projects within construction in progress.

Intangible assets represent the fair value assigned to definite-lived assets such as trade names and customer relationships as part of the Company’s acquisition of Brad Foote Gear Works completed in 2007 as well as the noncompetition agreements and customer relationships that were part of the Company’s acquisition of Red Wolf Company, LLC completed in 2017. Intangible assets are amortized on a straight-line basis over their estimated useful lives, with a remaining life range from 1 to 6 years.

During November 2021, the Company identified triggering events associated with operating losses within the Gearing segment and a decline in revenue and operating margin within the Heavy Fabrications segment during the year ended December 31, 2021. The Company relied upon undiscounted cash flow analyses and concluded that no impairment to these asset groups was indicated as of December 31, 2021. During October 2020, the Company also identified triggering events associated with its continued operating losses within the Gearing segment. The Company relied upon an undiscounted cash flow analysis and concluded that no impairment to this asset group was indicated as of December 31, 2020.

As of December 31, 2021 and 2020, the cost basis, accumulated amortization and net book value of intangible assets were as follows:

	December 31, 2021												December 31, 2020
											Remaining												Remaining
											Weighted												Weighted
						Accumulated			Net		Average							Accumulated			Net		Average
	Cost		Accumulated			Impairment			Book		Amortization				Accumulated			Impairment			Book		Amortization
	Basis		Amortization			Charges			Value		Period		Cost		Amortization			Charges			Value		Period
Intangible assets:
Noncompete agreements	$	170	$	(139	)	$	—		$	31		1.1	$	170	$	(111	)	$	—		$	59		2.1
Customer relationships		15,979		(7,284	)		(7,592	)		1,103		4.0		15,979		(6,979	)		(7,592	)		1,408		4.9
Trade names		9,099		(6,780	)		—			2,319		5.8		9,099		(6,380	)		—			2,719		6.8
Intangible assets	$	25,248	$	(14,203	)	$	(7,592	)	$	3,453		5.2	$	25,248	$	(13,470	)	$	(7,592	)	$	4,186		6.1

Intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from 6 to 20 years. Amortization expense was $733 for the years ended December 31, 2021 and 2020. As of December 31, 2021, estimated future amortization expense is as follows:

2022	$	733
2023		664
2024		661
2025		661
2026		422
2027 and thereafter		312
Total	$	3,453