GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 9 – GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill are as follows:

Balance, January 1, 2017	$	3,897,000
Acquisition of Jiffy Air Tool, Inc.		534,000
Currency translation adjustment		14,000
Balance, September 30, 2017	$	4,445,000

Other intangible assets were as follows:

	September 30, 2017						December 31, 2016
			Accumulated		Net book				Accumulated		Net book
	Cost		amortization		value		Cost		amortization		value
Other intangible assets:
Customer relationships (1)	$	6,834,000	$	1,427,000	$	5,407,000	$	5,143,000	$	1,022,000	$	4,121,000
Trademarks and trade names (1)		2,326,000		—		2,326,000		1,507,000		—		1,507,000
Trademarks and trade names (2)		200,000		15,000		185,000		200,000		5,000		195,000
Engineering drawings		330,000		168,000		162,000		330,000		148,000		182,000
Non-compete agreements (1)		238,000		201,000		37,000		212,000		150,000		62,000
Patents (3)		1,405,000		813,000		592,000		1,205,000		666,000		539,000
Totals	$	11,333,000	$	2,624,000	$	8,709,000	$	8,597,000	$	1,991,000	$	6,606,000

	(1)	A portion of these intangibles are maintained in a foreign currency, and are therefore subject to foreign exchange rate fluctuations.
	(2)	These were previously considered an indefinite-lived intangible asset of Hy-Tech. However, as the result of a prior impairment, the Company began amortizing these intangible assets over a 15 year useful life.
	(3)	The $200,000 increase represents a patent acquired during the third quarter of 2017.

Amortization expense of intangible assets from continuing operations subject to amortization was as follows:

Three months ended September 30,				Nine months ended September 30,
2017		2016		2017		2016
$	181,000	$	217,000	$	620,000	$	803,000

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

	September 30, 2017		December 31, 2016
Customer relationships		10.4		9.3
Trademarks and trade names (see note 2 to the table above)		13.8		14.5
Engineering drawings		8.3		8.8
Non-compete agreements		1.9		1.2
Patents		9.0		6.1

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

2018	$	709,000
2019		686,000
2020		653,000
2021		638,000
2022		635,000
Thereafter		3,062,000
	$	6,383,000

- 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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