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Note 6 - Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Text Block]

6.	*Goodwill and Intangible Assets:*

The Company’s intangible assets were recorded in connection with its acquisitions of Shaw Stainless & Alloy, Inc. (Shaw) in 2021, Action Stainless & Alloys (Action Stainless) in 2020 and Berlin Metals, LLC in 2018 for the specialty metals flat products segment and Metal-Fab in 2023 and EZ Dumper® and McCullough Industries in 2019 for the carbon flat products segment. The intangible assets were evaluated on the premise of highest and best use to a market participant, primarily utilizing the income approach valuation methodology.

Goodwill, by reportable unit, was as follows as of March 31, 2023 and December 31, 2022, respectively. The goodwill is deductible for tax purposes.

(in thousands)	Specialty Metals Flat Products		Carbon Flat Products		Total
Balance as of December 31, 2022	$	9,431	$	1,065	$	10,496
Acquisitions		-		33,194		33,194
Impairments		-		-		-
Balance as of March 31, 2023	$	9,431	$	34,259	$	43,690

Intangible assets, net, consisted of the following as of March 31, 2023 and December 31, 2022, respectively:

	As of March 31, 2023
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Intangible Assets, Net
Customer relationships - subject to amortization	$	59,059	$	(12,838	)	$	46,221
Covenant not to compete - subject to amortization		1,949		(391	)		1,558
Technology and know-how - subject to amortization		5,300		(88	)		5,212
Trade name - not subject to amortization		32,868		-			32,868
	$	99,176	$	(13,317	)	$	85,859

	As of December 31, 2022
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Intangible Assets, Net
Customer relationships - subject to amortization	$	22,559	$	(12,100	)	$	10,459
Covenant not to compete - subject to amortization		509		(301	)		208
Trade name - not subject to amortization		21,368		-			21,368
	$	44,436	$	(12,401	)	$	32,035

The Company estimates that amortization expense for its intangible assets subject to amortization will be approximately $3.3 million per year for the next three years, $2.8 million the following year and then $2.0 million for the next year after.