GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 7 - GOODWILL AND OTHER INTANGIBLE ASSETS

The changes in the carrying amount of goodwill by segment are as follows:

	Consolidated		Tools		Hardware
Balance, January 1, 2015	$	11,980,000	$	10,107,000	$	1,873,000
Adjustment to Acquisition of ATSCO		62,000		62,000		—
Currency translation adjustments		(2,000)		(2,000)		—
Balance, June 30, 2015	$	12,040,000	$	10,167,000	$	1,873,000

Other intangible assets were as follows:

	June 30, 2015						December 31, 2014
			Accumulated		Net book				Accumulated		Net book
	Cost		amortization		value		Cost		amortization		value
Other intangible assets:
Customer relationships (1)	$	13,203,000	$	4,969,000	$	8,234,000	$	13,194,000	$	4,551,000	$	8,643,000
Trademarks and trade names (1)		2,041,000		—		2,041,000		2,035,000		—		2,035,000
Engineering drawings		410,000		139,000		271,000		410,000		120,000		290,000
Licensing		305,000		264,000		41,000		305,000		235,000		70,000
Non-compete agreements (1)		369,000		90,000		279,000		368,000		41,000		327,000
Patents		1,205,000		267,000		938,000		1,205,000		133,000		1,072,000
Totals	$	17,533,000	$	5,729,000	$	11,804,000	$	17,517,000	$	5,080,000	$	12,437,000

(1)

A portion of these intangibles are maintained in a foreign currency, and are therefore subject to foreign exchange rate fluctuations.

Amortization expense for intangible assets subject to amortization was as follows:

Three months ended June 30,				Six months ended June 30,
2015		2014		2015		2014
$	323,000	$	58,000	$	647,000	$	116,000

The weighted average amortization period for intangible assets was as follows:

	June 30, 2015	December 31, 2014
Customer relationships	10.5		10.9
Engineering drawings	8.9		9.2
Licensing	0.7		1.2
Non-compete agreements	3.1		3.6
Patents	5.9		6.1

Amortization expense for each of the next five years and thereafter is estimated to be as follows:

2016	$	1,280,000
2017		1,239,000
2018		993,000
2019		961,000
2020		857,000
Thereafter		4,433,000
	$	9,763,000

- 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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