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Note 7 - Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2020
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] |
7. | Goodwill and Intangible Assets:
The Company’s intangible assets were recorded in connection with its acquisitions of Action Stainless in 2020, EZ Dumper and McCullough in 2019, its acquisition of Berlin Metals in 2018 and its acquisition of CTI in 2011. 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 was 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 non-compete agreements was determined to be the length of the non-compete agreements, which range from one to five years. The useful life of the trade names was 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 their useful life. The Company will continue to evaluate the useful life assigned to its amortizable customer relationships and noncompete agreements in future periods. Goodwill, by reportable unit, was as follows as of December 31, 2020 and December 31, 2019, 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, 2018 |  | $ | 1,065 |  |  | $ | 2,358 |  |  | $ | - |  |  | $ | 3,423 |
Acquisitions |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3,423 |
Impairments |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3,423 |
Balance as of December 31, 2019 |  |  | 1,065 |  |  |  | 2,358 |  |  |  | - |  |  |  | 3,423 |
Acquisitions |  |  | - |  |  |  | 1,700 |  |  |  | - |  |  |  | 1,700 |
Impairments |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Balance as of December 31, 2020 |  | $ | 1,065 |  |  | $ | 4,058 |  |  | $ | - |  |  | $ | 5,123 |
During 2020 and 2019, a qualitative test was performed for the indefinitely lived intangible assets and no indication of impairment was present. Intangible assets, net, consisted of the following as of December 31, 2020 and 2019, respectively:
|  | As of December 31, 2020 |
(in thousands) |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Intangible Assets, Net |
Customer relationships - subject to amortization |  | $ | 21,442 |  |  | $ | (9,101 | ) |  | $ | 12,341 |
Covenant not to compete - subject to amortization |  |  | 259 |  |  |  | (186 | ) |  |  | 73 |
Trade name - not subject to amortization |  |  | 20,179 |  |  |  | - |  |  |  | 20,179 |
|  | $ | 41,880 |  |  | $ | (9,287 | ) |  | $ | 32,593 |
|  | As of December 31, 2019 |
(in thousands) |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Intangible Assets, Net |
Customer relationships - subject to amortization |  | $ | 18,022 |  |  | $ | (7,900 | ) |  | $ | 10,122 |
Covenant not to compete - subject to amortization |  |  | 259 |  |  |  | (117 | ) |  |  | 142 |
Trade name - not subject to amortization |  |  | 18,995 |  |  |  | - |  |  |  | 18,995 |
|  | $ | 37,276 |  |  | $ | (8,017 | ) |  | $ | 29,259 |
The Company estimates that amortization expense for its intangible assets subject to amortization will be approximately $1.5 million per year for the next two years and $1.4 million per year for the three years thereafter.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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