Note 7 - Long-lived Assets

12 Months Ended

Dec. 31, 2022

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, 2022 and 2021 are as follows:

	As of December 31,
	2022			2021			Life (in years)
Land	$	1,423		$	1,423
Buildings		20,792			20,778			39
Machinery and equipment		120,893			116,725			2 - 10
Office furniture and equipment		5,705			5,480			3 - 7
Leasehold improvements		9,040			8,937		Shorter of asset life or life of lease
Construction in progress		2,360			677
		160,213			154,020
Less accumulated depreciation and amortization		(114,894	)		(110,365	)
Total property and equipment	$	45,319		$	43,655

As of December 31, 2022, the Company had commitments of $1,942 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. Intangible assets are amortized on a straight-line basis over their estimated useful lives, with a remaining life range from 1 to 5 years.

During November 2022, the Company identified a triggering event associated with an expected operating loss within the Heavy Fabrications segment during the year ended December 31, 2022. Accordingly, the Company performed an undiscounted cash flow analysis as of November 30, 2022 and determined that the undiscounted future cash flows exceeded the asset group's carrying value. Additionally, there were no changes in facts or circumstances following the November 30, 2022 assessment through December 31, 2022, which would alter the asset group’s initial undiscounted future cash flows or carrying value estimates. As a result, no impairment charge was recorded for the Heavy Fabrications asset group for the year ended December 31, 2022. 

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. Accordingly, the Company performed undiscounted cash flow analyses as of November 30, 2021 and determined that the undiscounted future cash flows exceeded the asset groups' carrying values. Additionally, there were no changes in facts or circumstances following the November 30, 2021 assessments through December 31, 2021, which would alter the asset groups initial undiscounted future cash flows or carrying value estimates. As a result, no impairment charges were recorded for the Heavy Fabrications and Gearing asset groups for the year ended December 31, 2021.

As of December 31, 2022 and 2021, the cost basis, accumulated amortization and net book value of intangible assets were as follows:

	December 31, 2022												December 31, 2021
											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	$	(167	)	$	—		$	3		0.1	$	170	$	(139	)	$	—		$	31		1.1
Customer relationships		15,979		(7,581	)		(7,592	)		806		3.1		15,979		(7,284	)		(7,592	)		1,103		4.0
Trade names		9,099		(7,180	)		—			1,919		4.8		9,099		(6,780	)		—			2,319		5.8
Intangible assets	$	25,248	$	(14,928	)	$	(7,592	)	$	2,728		4.3	$	25,248	$	(14,203	)	$	(7,592	)	$	3,453		5.2

Intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from 6 to 20 years. Amortization expense was $725 for the years ended December 31, 2022 and 2021. As of December 31, 2022, estimated future amortization expense is as follows:

2023	$	664
2024		661
2025		661
2026		422
2027		320
Total	$	2,728