Goodwill And Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets consist of the following:


		September 30, 2015						December 31, 2014
	Amortizable Life (years)	Gross Value		Accumulated Amortization		Net Value		Gross Value		Accumulated Amortization		Net Value
		(in thousands)
Finite-lived intangible assets:
Customer relationships ^{(1) (2)}	5 to 10	$	11,817	$	4,100	$	7,717	$	5,378	$	3,858	$	1,520
Patents ⁽³⁾	5 to 20		1,523		1,236		287		1,501		1,223		278
Developed technology ^{(1) (2)}	5 to 10		6,630		1,801		4,829		1,980		1,719		261
License ⁽²⁾	10		421		—		421		—		—		—
Trademarks	2		60		35		25		60		13		47
Backlog ^{(1) (2)}	1 to 2		530		35		495		—		—		—
Non-compete agreements	5		11		3		8		11		1		10

Total amortized finite-lived intangible assets			20,992		7,210		13,782		8,930		6,814		2,116

Indefinite-lived intangible assets:
Trademarks ^{(1) (2)}			3,882		—		3,882		1,672		—		1,672

Other intangible assets, net		$	24,874	$	7,210	$	17,664	$	10,602	$	6,814	$	3,788

⁽¹⁾

On May 22, 2015, the Company acquired certain assets and assumed certain liabilities of Torque Systems. Included in the purchase price allocation are customer relationships valued at $1,535,000 with an estimated useful life of 5 years, developed technology valued at $1,124,000 with an estimated useful of 8 years, backlog valued at $211,000 with an estimated life of 2 years, and an indefinite-lived trademark valued at $473,000. The total weighted-average amortization period of the Torque Systems intangible assets, excluding the indefinite-lived trademark, is approximately 6 years.

⁽²⁾

On July 27, 2015, the Company acquired all of the issued and outstanding stock of Davall. As of the acquisition date, included in the purchase price allocation are customer relationships valued at $4,966,000 with an estimated useful life of 10 years, developed technology valued at $3,570,000 with an estimated useful of 10 years, a royalty-free, perpetual license valued at $426,000 with an estimated useful life of 10 years, backlog valued at $323,000 with an estimated life of 1 year, and an indefinite-lived trademark valued at $1,759,000. The total weighted-average amortization period of the Davall intangible assets, excluding the indefinite-lived trademark, is approximately 10 years.

⁽³⁾	During 2015, MTE Corporation (“MTE”) capitalized $22,000 of legal fees related to a new patent application. The estimated useful life of the asset is 20 years.

Estimated Future Amortization Expense for Intangible Assets Subject to Amortization

Estimated future amortization expense for intangible assets subject to amortization in each of the next five fiscal years is as follows:


	Amortization Expense
	(in thousands)
2015	$	1,112
2016	$	1,954
2017	$	1,611
2018	$	1,561
2019	$	1,560

Changes in Goodwill Balances by Segment

Changes in goodwill balances by segment (which are defined below) are as follows:


	Balance December 31, 2014		Acquisitions		Foreign Exchange			Balance September 30, 2015
	(in thousands)
SL Power Electronics Corp.	$	4,230	$	—	$	17		$	4,247
High Power Group:
MTE Corporation		8,189		—		—			8,189
SL-MTI		653		4,158		(38	)		4,773

Goodwill	$	13,072	$	4,158	$	(21	)	$	17,209

Components of Goodwill

The following table reflects the components of goodwill as of September 30, 2015, and December 31, 2014:


	September 30, 2015						December 31, 2014
	Gross Amount		Accumulated Impairment Losses		Goodwill, Net		Gross Amount		Accumulated Impairment Losses		Goodwill, Net
	(in thousands)
SL Power Electronics Corp.	$	4,247	$	—	$	4,247	$	4,230	$	—	$	4,230
High Power Group:
MTE Corporation		8,189		—		8,189		8,189		—		8,189
TEAL Electronics Corp.		5,055		5,055		—		5,055		5,055		—
SL-MTI		4,773		—		4,773		653		—		653

Goodwill	$	22,264	$	5,055	$	17,209	$	18,127	$	5,055	$	13,072