Note 7 - Goodwill and Intangible Assets

3 Months Ended

Apr. 01, 2017

Goodwill and Intangible Assets Disclosure [Text Block]

Note

– Goodwill and Intangible Assets

Goodwill

August

2016,

the Company conducted its annual impairment tests using the quantitative method of evaluating goodwill. Based on the quantitative analyses the Company determined the fair value of each of the reporting units exceeded its carrying value. Therefore, the goodwill was not impaired and the Company did not recognize an impairment charge relating to goodwill as of

August

2016.

There were no indicators, events or changes in circumstances that would indicate goodwill was impaired during the period from

August

2016

through

April

2017.

The table set forth below shows the change in goodwill during the

three

months ended

April

2017

and year ended

December

31,

2016:

	April 1,			December 31,
	2017			2016
Balance as of the beginning of the year	$	59,380		$	21,679
Acquisitions		-			37,701
Reduction from working capital proceeds		(1,138	)		-
Balance as of the end of the period	$	58,242		$	59,380

During the

first

quarter of

2017,

the Company revised its allocation of purchase price for its JBA acquisition and reduced goodwill by

$1,138.

Intangible Assets

Intangible assets, net, as of

April

2017

and

December

31,

2016

consist of the following:

	April 1, 2017							December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Amount		Gross Carrying Amount		Accumulated Amortization			Net Amount
Customer relationships	$	38,801	$	(6,732	)	$	32,069	$	38,801	$	(5,746	)	$	33,055
Trade name		4,185		(3,249	)		936		4,185		(2,746	)		1,439
Customer backlog		6,607		(2,618	)		3,989		6,607		(2,284	)		4,323
Favorable lease		553		(109	)		444		553		(158	)		395
Non-compete		2,546		(1,054	)		1,492		2,546		(897	)		1,649
Total	$	52,692	$	(13,762	)	$	38,930	$	52,692	$	(11,831	)	$	40,861

Trade names are amortized on a straight-line basis over their estimated lives ranging from

years. Customer backlog and customer relationships are amortized on a straight-lines basis over estimated lives ranging from

years. Non-compete agreements are amortized on a straight-line basis over their contractual lives ranging from

years. Favorable lease is amortized on a straight-line basis over the remaining lease term of

years.

Amortization expense was

$1,931

and

$864

for the

three

months ended

April

2017

and

March

31,

2016,

respectively.

As of

April

2017,

the future estimated aggregate amortization related to intangible assets is as follows:

Period ending April 1,

2018	$	6,121
2019		4,851
2020		4,379
2021		3,861
2022		3,685
Thereafter		16,033
Total	$	38,930

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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