Annual report pursuant to Section 13 and 15(d)

Goodwill And Other Intangible Assets

v3.3.1.900
Goodwill And Other Intangible Assets
12 Months Ended
Dec. 31, 2015
Goodwill And Other Intangible Assets [Abstract]  
Goodwill And Other Intangible Assets

NOTE 5.  GOODWILL AND OTHER INTANGIBLE ASSETS

 

Goodwill

 

There was a decrease in goodwill during the year ended December 31, 2015 from $29,628 to $0 due to the impairment of goodwill and the impact of foreign currency exchange rates.  There was a decrease in goodwill during the year ended December 31, 2014 from $30,620 to $29,628 due to the impact of foreign currency exchange rates.  During the fourth quarter of the year ended December 31, 2015, there was a decrease in the Company’s market capitalization which was determined to be a triggering event for potential goodwill impairment.  Accordingly, the Company performed a goodwill impairment analysis.  The Company utilized the market capitalization, plus a reasonable control premium to estimate the fair value.  Our total stockholders’ equity exceeded the estimated fair value by $32,754The failure of step one of the goodwill impairment test triggered a step two impairment test.  As a result of step two of the impairment test, the Company determined the implied fair value of goodwill and concluded that the carrying value of goodwill exceeded its implied fair value as of December 31, 2015.  Accordingly, an impairment charge of $29,507, which represents a full impairment charge, was recognized in the fourth quarter of 2015.  The following table summarizes the changes in goodwill:

 

 

 

 

 

 

Balance at December 31, 2013

 

$

30,620 

 

 

 

 

Impact of foreign currency exchange rates

 

 

(992)

 

 

 

 

Balance at December 31, 2014

 

$

29,628 

 

 

 

 

Decrease due to impairment

 

 

(29,507)

Impact of foreign currency exchange rates

 

 

(121)

 

 

 

 

Balance at December 31, 2015

 

$

 -

 

Indefinite Lived Intangible Assets 

 

The Company owns certain tradenames and trademarks which provide Black Diamond Equipment and PIEPS with the exclusive and perpetual rights to manufacture and sell their respective products.  Tradenames and trademarks are not amortized, but reviewed annually for impairment or upon the existence of a triggering event.  There was a decrease in tradenames and trademarks during the year ended December 31, 2015 due to the impact of foreign currency exchange rates.  Based on the results of the Company’s annual impairment tests, the Company determined that indefinite lived intangible assets were not impaired.  The following table summarizes the changes in indefinite lived intangible assets:

 

 

 

 

 

 

Balance at December 31, 2014

 

$

22,993 

 

 

 

 

Impact of foreign currency exchange rates

 

 

(349)

 

 

 

 

Balance at December 31, 2015

 

$

22,644 

 

 

 

 

Other Intangible Assets, net

 

Intangible assets such as certain customer relationships, core technologies and product technologies are amortizable over their estimated useful lives.  There was a decrease in gross other intangible assets subject to amortization during the year ended December 31, 2015 due to the impact of foreign currency exchange rates.  The following table summarizes the changes in gross other intangible assets:

 

 

 

 

 

 

Gross balance at December 31, 2014

 

$

17,633 

 

 

 

 

Impact of foreign currency exchange rates

 

 

(503)

 

 

 

 

Gross balance at December 31, 2015

 

$

17,130 

 

 

 

 

Intangible assets, net of amortization as of December 31, 2015 and December 31, 2014, were as follows: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015

 

 

Gross

 

Accumulated Amortization

 

Net

 

Weighted Average Useful Life

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangibles subject to amortization

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

$

14,026 

 

$

(5,034)

 

$

8,992 

 

 

15.3 years

Product technologies

 

 

2,157 

 

 

(633)

 

 

1,524 

 

 

14.0 years

Core technologies

 

 

947 

 

 

(529)

 

 

418 

 

 

10.0 years

 

 

$

17,130 

 

$

(6,196)

 

$

10,934 

 

 

14.9 years

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

 

Gross

 

Accumulated Amortization

 

Net

 

Weighted Average Useful Life

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangibles subject to amortization

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

$

14,306 

 

$

(4,121)

 

$

10,185 

 

 

15.3 years

Product technologies

 

 

2,380 

 

 

(520)

 

 

1,860 

 

 

14.1 years

Core technologies

 

 

947 

 

 

(434)

 

 

513 

 

 

10.0 years

 

 

$

17,633 

 

$

(5,075)

 

$

12,558 

 

 

14.8 years

 

 

 

 

 

 

 

 

 

 

 

Amortization expense for continuing operations for the years ended December 31, 2015, 2014, and 2013, was $1,245, $1,410, and $1,409, respectively.  Future amortization expense for other intangible assets as of December 31, 2015 is as follows:  

 

 

 

 

 

 

2016 

 

 

1,072 
2017 

 

 

1,072 
2018 

 

 

1,072 
2019 

 

 

1,072 
2020 

 

 

1,016 

Thereafter

 

 

5,630 

 

 

$

10,934