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Note 10 - Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2019
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 10 – Goodwill and Other Intangible Assets The major components of Goodwill and other intangible assets are:
|  | 201 9 |  |  | 201 8 |
|  | Historical Cost |  |  | Accumulated Amortization |  |  | Historical Cost |  |  | Accumulated Amortization |
Finite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 7,832 |  |  | $ | 6,301 |  |  | $ | 7,833 |  |  | $ | 5,514 |
Technology and drawings |  |  | 6,749 |  |  |  | 3,712 |  |  |  | 6,752 |  |  |  | 3,417 |
Other intangibles |  |  | 2,292 |  |  |  | 1,151 |  |  |  | 1,838 |  |  |  | 1,172 |
Total finite-lived intangible assets |  |  | 16,873 |  |  |  | 11,164 |  |  |  | 16,423 |  |  |  | 10,103 |
Goodwill |  |  | 27,215 |  |  |  | - |  |  |  | 27,234 |  |  |  | - |
Trade names and trademarks |  |  | 2,072 |  |  |  | - |  |  |  | 2,631 |  |  |  | - |
Total |  | $ | 46,160 |  |  | $ | 11,164 |  |  | $ | 46,288 |  |  | $ | 10,103 |
Amortization of intangible assets was $1.2 million, $1.2 million and $1.6 million in 2019, 2018 and 2017, respectively. Amortization of these intangible assets for 2020 through 2024 is expected to approximate $0.7 million per year. Changes in the carrying value of goodwill during the years ended December 31, 2019 and 2018 are as follows:
|  | Goodwill |
Balance at December 31, 2017 |  |  | 27,551 |
Acquisitions |  |  | - |
Impairment |  |  | - |
Foreign currency |  |  | (317 | )
Balance at December 31, 2018 |  |  | 27,234 |
Acquisitions |  |  | - |
Impairment |  |  | - |
Foreign currency |  |  | (19 | )
Balance at December 31, 201 9 |  | $ | 27,215 |
For 2019, the Company used a quantitative analysis for the annual goodwill impairment testing as of October 1 for its National Pump Company (“National”) reporting unit. The fair value for this reporting unit was estimated using a discounted cash flow model, which considered forecasted cash flows discounted at an estimated weighted-average cost of capital. The forecasted cash flows were based on the Company’s long-term operating plan and a terminal value was used to estimate the cash flows beyond the period covered by the operating plan. The weighted-average cost of capital is an estimate of the overall after-tax rate of return required by equity and debt market holders of a business enterprise. These analyses require the exercise of significant judgments, including judgments about appropriate discount rates, perpetual growth rates and the timing of expected future cash flows. Sensitivity analyses were performed around these assumptions in order to assess the reasonableness of the assumptions and the resulting estimated fair values. The result of this goodwill impairment test indicated that no impairment existed at National. The Company’s annual impairment analysis performed as of October 1, 2019 concluded that National’s fair value exceeded its carrying value by approximately 18%. A sensitivity analysis was performed for the National reporting unit, assuming a hypothetical 100 basis point decrease in the expected long-term growth rate or a hypothetical 100 basis point increase in the weighted average cost of capital, and both scenarios independently yielded an estimated fair value for the National reporting unit slightly above carrying value. If National fails to experience growth or revises its long-term projections downward, it could be subject to impairment charges in the future. Goodwill relating to the National reporting unit represents 4% of the Company’s December 31, 2019 total assets. For 2019, for all other reporting units, the Company used a qualitative analysis for goodwill impairment testing as of October 1. This qualitative assessment included consideration of current industry and market conditions and circumstances as well as any mitigating factors that would most affect the fair value of the Company and these reporting units. Based on the assessment and consideration of the totality of the facts and circumstances, including the business environment in the fourth quarter of 2019, the Company determined that it was not more likely than not that the fair value of the Company or these reporting units is less than their respective carrying amounts. As such, no goodwill impairments for these reporting units were recorded for the year ended December 31, 2019. During the third quarter of 2017, the decreasing demand for barge pumps for the marine transportation market, driven by low oil prices and overcapacity of inland barges, continued to negatively affect the Bayou City Pump Company (“Bayou”) reporting unit, which led management to reconsider its estimates for future profitability of this reporting unit prior to the October 1 annual goodwill impairment testing date in 2017. As such, the Company performed an interim discounted cash flow analysis to test for potential impairment of goodwill pursuant to ASC 350, “Intangibles – Goodwill and Other.” As a result of this impairment test, the Company concluded that the goodwill was impaired and recorded a non-cash impairment charge of $0.9 million during the third quarter of 2017 which represented the full remaining amount of Bayou’s goodwill. This impairment charge is included in Impairment of goodwill and other intangible assets on the Consolidated Statements of Income. Other indefinite-lived intangible assets primarily consist of trademarks and trade names. The fair value of these assets is also tested annually for impairment as of October 1, or whenever events or changes in circumstances indicate there may be a possible permanent loss of value. The fair value of these assets is determined using a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows and profitability. For 2019 and 2018 the fair value of all indefinite lived intangible assets exceeded the respective carrying values. Finite-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recovered through future net cash flows generated by the assets. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future net undiscounted cash flows estimated to be generated by such assets. Based upon our fiscal 2019 and 2018 quantitative and qualitative impairment analyses, except for the risk related to National’s indicated fair value, the Company was not aware of any events or changes in circumstances that indicate the carrying value of its finite-lived intangible assets may not be recoverable.

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