Annual report pursuant to Section 13 and 15(d)

Intangible Assets

v3.6.0.2
Intangible Assets
12 Months Ended
Dec. 31, 2016
Intangible Assets [Abstract]  
Intangible Assets

NOTE F – INTANGIBLE ASSETS



The Company performed its annual goodwill impairment test during the third quarter of 2016. The Company performed a qualitative assessment of each reporting unit and determined that is was not more-likely-than-not that the fair value of any reporting unit was less than its carrying amount.  As a result, the two-step goodwill impairment test was not required and no impairments of goodwill were recognized in 2016.



The Company also performed its annual indefinite-lived intangible asset impairment test during the third quarter of 2016. The Company performed a qualitative assessment of the indefinite-lived intangible assets and determined that is was not more-likely-than-not that the fair value of any indefinite-lived intangible asset was less than the carrying amount. As a result, the quantitative impairment test was not required and no impairments of indefinite-lived intangible assets were recognized in 2016.



The changes in the carrying amount of goodwill are as follows:







 

 

 

 

 



 

 

 

 

 



 

January 2,

 

December 31,

 



 

2016

 

2016

 



 

 

 

 

 

Balance at beginning of year:

 

 

 

 

 

Gross goodwill

 

$             17,941

 

$             17,432

 

Accumulated impairment losses

 

 -

 

 -

 

Net goodwill as of beginning of year

 

17,941 

 

17,432 

 



 

 

 

 

 

Goodwill acquired during the year

 

 -

 

 -

 

Impairment loss

 

 -

 

 -

 

Currency translation adjustment

 

(509)

 

(717)

 



 

 

 

 

 

Balance as of end of year

 

 

 

 

 

Gross goodwill

 

17,432 

 

16,715 

 

Accumulated impairment losses

 

 -

 

 -

 

Net goodwill as of end of year

 

$             17,432

 

$             16,715

 



 

 

 

 

 



NOTE F – INTANGIBLE ASSETS – CONTINUED





 

 

 

 

 

 

 

 

Intangible assets consist of the following:

 

 

 

 

 

 

 

 



 

As of  January 2, 2016

 

 



 

 

 

 

 

 

 

Weighted-average



 

Gross carrying

 

Accumulated

 

Net carrying

 

amortization



 

amount

 

amortization

 

amount

 

period (years)



 

 

 

 

 

 

 

 

Amortized intangible assets

 

 

 

 

 

 

 

 

Trade name and trademarks

 

$              4,086

 

$            (2,205)

 

$              1,881

 

10

Product formulas

 

9,010 

 

(489)

 

8,521 

 

8



 

 

 

 

 

 

 

 

Indefinite-lived intangible assets

 

 

 

 

 

 

 

 

Direct sales license

 

27,867 

 

 

 

27,867 

 

 



 

 

 

 

 

 

 

 



 

$            40,963

 

 

 

$            38,269

 

 



 

 

 

 

 

 

 

 







 

 

 

 

 

 

 

 



 

As of  December 31, 2016

 

 



 

 

 

 

 

 

 

Weighted-average



 

Gross carrying

 

Accumulated

 

Net carrying

 

amortization



 

amount

 

amortization

 

amount

 

period (years)



 

 

 

 

 

 

 

 

Amortized intangible assets

 

 

 

 

 

 

 

 

Trade name and trademarks

 

$              3,820

 

$                  (2,440)

 

$             1,380

 

10

Product formulas

 

8,424 

 

(1,512)

 

6,912 

 

8



 

 

 

 

 

 

 

 

Indefinite-lived intangible assets

 

 

 

 

 

 

 

 

Direct sales license

 

26,057 

 

 

 

26,057 

 

 



 

 

 

 

 

 

 

 



 

$            38,301

 

 

 

$           34,349

 

 



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Estimated Amortization Expense:

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

2017

 

$              1,435

 

 

 

 

 

 

2018

 

1,435 

 

 

 

 

 

 

2019

 

1,435 

 

 

 

 

 

 

2020

 

1,288 

 

 

 

 

 

 

2021

 

1,053 

 

 

 

 

 

 

Thereafter

 

1,646 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

$              8,292

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Aggregate amortization of intangible assets was $431,  $900, and $1,500, for the years ended 2014, 2015, and 2016, respectively.