Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

v3.4.0.3
Goodwill and Intangible Assets
3 Months Ended
Apr. 02, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS
A summary of changes in goodwill at April 2, 2016 is as follows:
Balance, January 2, 2016
$
4,988

Acquisitions

Currency translation
(144
)
Balance, April 2, 2016
$
4,844



Valuation models reflecting the expected future cash flow projections are used to value reporting units. A valuation of the reporting unit at January 2, 2016 indicated that there was no impairment of the carrying value of the goodwill at Sun Korea. A valuation of the reporting unit at September 26, 2015 indicated that there was no impairment of the carrying value of the goodwill at HCT.

The Company recognized $2,658 and $746 in identifiable intangible assets as a result of the acquisitions of HCT and WhiteOak, respectively. Intangible assets are held in other assets on the balance sheet. In 2014, the Company entered into a licensing agreement with Sturman Industries, Inc., recognizing intangible assets of $1,075 in 2014 and $1,425 in 2015, and $850 in the three months ending April 2, 2016. The agreement is for licensed technology to be used with the Company's electrically actuated hydraulic cartridge valves. Royalties will be paid from the date of the first commercial sale and continue for fifteen years thereafter, or until the last related licensed patent expires, whichever is the later date. At April 2, 2016 and January 2, 2016, intangible assets consisted of the following: 
 
April 2, 2016

January 2, 2016
 
Gross  carrying
amount
 
Accumulated
amortization
 
Net carrying
amount
 
Gross  carrying
amount
 
Accumulated
amortization
 
Net carrying
amount
Definite-lived intangibles:











Trade Name
$
774


$
(359
)

$
415


$
774


$
(340
)

$
434

Non-compete agreement
11


(11
)



11


(11
)


Technology
935


(391
)

544


935


(304
)

631

Customer relationships
1,751


(387
)

1,364


1,751


(363
)

1,388

Licensing agreement
3,350

 
(197
)
 
3,153

 
2,500

 
(140
)
 
2,360


$
6,821


$
(1,345
)

$
5,476


$
5,971


$
(1,158
)

$
4,813


Total estimated amortization expense for the years 2017 through 2021 is presented below. The remaining amortization for 2016 is approximately $351.
Year:

2017
486

2018
486

2019
486

2020
486

2021
486

Total
$
2,430


Intangible assets are evaluated for impairment whenever events or circumstances indicate that the undiscounted net cash flows to be generated by their use over their expected useful lives and eventual disposition may be less than their net carrying value. No such events or circumstances occurred during the three months ended April 2, 2016.