Note 6 - Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

6. Goodwill and Intangible Assets :

The Company’s intangible assets were recorded in connection with its

April 2, 2018

acquisition of Berlin Metals and its

2011

acquisition of CTI. The intangible assets were evaluated on the premise of highest and best use to a market participant, primarily utilizing the income approach valuation methodology. The useful life of the customer relationships were determined to be

fifteen

years, based primarily on the consistent and predictable revenue source associated with the existing customer base, the present value of which extends through the

fifteen

year amortization period. The useful life of the trade names were determined to be indefinite primarily due to their history and reputation in the marketplace, the Company’s expectation that the trade names will continue to be used, and the conclusion that there are currently

no

other factors identified that would limit its useful life. The Company will continue to evaluate the useful life assigned to our amortizable customer relationships in future periods.

Goodwill, by reportable segment, was as follows as of

September 30, 2018

and

December 31, 2017,

respectively. The goodwill is deductible for tax purposes.

(in thousands)	Carbon Flat Products		Specialty Metals Flat Products		Tubular and Pipe Products		Total
Balance as of December 31, 2017	$	-	$	-	$	-	$	-
Acquisitions		-		2,358		-		2,358
Impairments		-		-		-		-
Balance as of September 30, 2018	$	-	$	2,358	$	-	$	2,358

Intangible assets, net, consisted of the following as of

September 30, 2018

and

December 31, 2017,

respectively:

	As of September 30, 2018
(in thousands)	Gross Carrying Amount		Acquisitions		Accumulated Amortization			Intangible Assets, Net
Customer relationships - subject to amortization	$	13,332	$	640	$	(6,465	)	$	7,507
Covenant not to compete - subject to amortization		-		157		(28	)		129
Trade name - not subject to amortization		15,425		2,100		-			17,525
	$	28,757	$	2,897	$	(6,493	)	$	25,161

	As of December 31, 2017
(in thousands)	Gross Carrying Amount		Acquisitions		Accumulated Amortization			Intangible Assets, Net
Customer relationships - subject to amortization	$	13,332	$	-	$	(5,777	)	$	7,555
Trade name - not subject to amortization		15,425		-		-			15,425
	$	28,757	$	-	$	(5,777	)	$	22,980

The Company estimates that amortization expense for its intangible assets subject to amortization will be approximately

$1.0

million per year in each of the next

five

years.