Goodwill and intangible assets

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Note 6 – Goodwill and intangible assets

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in business combinations accounted for under the purchase method of accounting. The Company performed the annual goodwill impairment assessment using a qualitative approach to determine whether it is more likely than not that the fair value of goodwill is less than its carrying value. In performing the qualitative assessment, we identify and consider the significance of relevant key factors, events, and circumstances that affect the fair value of our goodwill. These factors include external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, such as our actual and planned financial performance. If the results of the qualitative assessment conclude that it is not more likely than not that the fair value of goodwill exceeds its carrying value, additional quantitative impairment testing is performed.

The impairment test was performed at the operating segment level as the acquired businesses have been fully integrated into our existing structure. Based on the results of the impairment assessment performed, we concluded that it is more likely than not that the fair value of our goodwill significantly exceeds the carrying value.

At December 31, 2015 the Company had $856,000 of goodwill, of which $435,000 is attributable to the acquisition of Polar Technologies, LLC and $421,000 is attributable to the acquisition of a supplier of refrigerants and compressed gases.

The Company’s other intangible assets consist of the following:

December 31,			2015						2014
(in thousands)	Amortization		Gross						Gross
	Period		Carrying		Accumulated				Carrying		Accumulated
	(in years)		Amount		Amortization		Net		Amount		Amortization		Net
Intangible Assets with determinable lives
Patents		5	$	387	$	352	$	35	$	374	$	332	$	42
Covenant Not to Compete		6 - 10		1,270		171		1,099		1,000		16		984
Customer Relationships		3 - 10		2,000		236		1,764		227		13		214
Trade Name		2		30		24		6		108		9		99
Licenses		10		1,000		117		883		1,000		17		983
Totals identifiable intangible assets			$	4,687	$	900	$	3,787	$	2,709	$	387	$	2,322

Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. No impairments were recognized for the years ended December 31, 2015 and December 31, 2014.

The amortization of intangible assets for the years ended December 31, 2015 and December 31, 2014 was $512,000 and $79,000 respectively. Future estimated amortization expense is as follows: 2016 - $503,000, 2017 - $478,000, 2018 - $444,000, 2019 - $444,000, 2020 - $444,000 and thereafter - $1,474,000.

- 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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