Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 05, 2018 | Jun. 30, 2017 | |
Document and Entity Information: | |||
Entity Registrant Name | UTAH MEDICAL PRODUCTS INC | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Entity Central Index Key | 706,698 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 3,725,763 | ||
Entity Public Float | $ 242,289,134 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | utmd |
UTAH MEDICAL PRODUCTS, INC. CON
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash | $ 39,875 | $ 26,296 |
Investments, available-for-sale | 80 | 64 |
Accounts & other receivables - net | 3,623 | 3,211 |
Inventories | 5,244 | 4,542 |
Prepaid expenses and other current assets | 366 | 361 |
Total current assets | 49,188 | 34,474 |
Property and equipment - net | 11,621 | 9,966 |
Goodwill | 14,092 | 13,487 |
Other intangible assets | 34,805 | 31,947 |
Other intangible assets - accumulated amortization | (16,961) | (13,683) |
Other intangible assets - net | 17,844 | 18,264 |
TOTAL ASSETS | 92,745 | 76,191 |
Current liabilities: | ||
Accounts payable | 934 | 906 |
Accrued expenses | 4,346 | 2,116 |
Total current liabilities | 5,280 | 3,022 |
Long Term income tax payable | 5,785 | |
Deferred tax liability - intangible assets | 3,102 | 3,209 |
Deferred income taxes | 456 | 716 |
Total liabilities | 14,623 | 6,947 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value; 5,000 shares authorized, no shares issued and outstanding | ||
Common stock, $.01 par value; 50,000 shares authorized, issued 3,721 shares in 2017 and 3,713 shares in 2016 | 37 | 37 |
Accumulated other comprehensive income (loss) | (8,341) | (12,243) |
Additional paid-in capital | 809 | 378 |
Retained earnings | 85,617 | 81,072 |
Total stockholders' equity | 78,122 | 69,244 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 92,745 | $ 76,191 |
UTAH MEDICAL PRODUCTS, INC. CO3
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position | ||
Preferred Stock, Par Value | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 5,000 | 5,000 |
Preferred Stock, Shares Issued | ||
Preferred Stock, Shares Outstanding | ||
Common Stock, Par Value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 50,000 | 50,000 |
Common Stock, Shares Issued | 3,721 | 3,713 |
Common Stock, Shares Outstanding | 3,721 | 3,713 |
UTAH MEDICAL PRODUCTS, INC. CO4
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement | |||
Sales, net | $ 41,414 | $ 39,298 | $ 40,157 |
Cost of goods sold | 15,019 | 15,608 | 15,972 |
Gross profit | 26,395 | 23,690 | 24,185 |
Operating expense: | |||
Sales and marketing | 1,544 | 1,673 | 2,164 |
Research and development | 447 | 475 | 522 |
General and administrative | 5,393 | 5,355 | 5,848 |
Operating income | 19,011 | 16,187 | 15,651 |
Other income (expense): | |||
Dividend and interest income | 17 | 12 | 5 |
Royalty income | 86 | 91 | 93 |
Interest expense | (65) | ||
Other, net | (32) | 132 | (139) |
Income before provision for income taxes | 19,082 | 16,422 | 15,545 |
Provision for income taxes | 10,577 | 4,294 | 3,702 |
Net income | $ 8,505 | $ 12,128 | $ 11,843 |
Earnings per common shares (basic) | $ 2.29 | $ 3.23 | $ 3.16 |
Earnings per common share (diluted) | $ 2.28 | $ 3.22 | $ 3.14 |
Other comprehensive income: | |||
Foreign currency translation net of taxes of $0 in all periods | $ 3,893 | $ (6,289) | $ (2,724) |
Unrealized gain (loss) on investments net of taxes of $6, $3, and $(1) | 10 | 5 | (2) |
Total comprehensive income | $ 12,408 | $ 5,844 | $ 9,117 |
UTAH MEDICAL PRODUCTS, INC. CO5
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement | |||
Foreign currency translation tax adjustment | $ 0 | $ 0 | $ 0 |
Unrealized gain (loss) on investments tax adjustment | $ 6 | $ 3 | $ (1) |
UTAH MEDICAL PRODUCTS, INC. CO6
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF CASH FLOW - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 8,505 | $ 12,128 | $ 11,843 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 660 | 610 | 619 |
Amortization | 2,113 | 2,223 | 2,528 |
Provision for (recovery of) losses on accounts receivable | 4 | 0 | (10) |
Loss on disposal of assets | 17 | 5 | 1 |
Deferred income taxes | (658) | (484) | (901) |
Stock-based compensation expense | 129 | 92 | 87 |
(Increase) decrease in accounts receivable | (242) | 295 | 137 |
(Increase) decrease in other receivables | 2 | 897 | (91) |
(Increase) decrease in inventories | (467) | (360) | 422 |
(Increase) decrease in prepaid expenses and other current assets | 24 | 23 | 28 |
Increase (decrease) in accounts payable | 9 | 286 | (265) |
Increase (decrease) in accrued expenses | 1,027 | (1,187) | (597) |
Increase (decrease) in Long-term repatriation tax payable | 5,785 | ||
Net cash provided by operating activities | 16,908 | 14,528 | 13,801 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures for property and equipment | (1,597) | (3,293) | (176) |
Capital expenditures for intangible assets | (9) | (70) | |
Net cash provided by (used in) investing activities | (1,597) | (3,302) | (246) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of common stock - options | 302 | 376 | 343 |
Common stock purchased and retired | (2,850) | (683) | |
Payment of taxes for exchange of stock options | (42) | ||
Tax benefit attributable to exercise of stock options | 50 | 114 | |
Repayments of notes payable | (4,777) | ||
Dividends paid | (2,955) | (3,916) | (3,846) |
Net cash provided by (used in) financing activities | (2,653) | (6,340) | (8,891) |
Effect of exchange rate changes on cash | 921 | (1,868) | (660) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 13,579 | 3,018 | 4,004 |
CASH AT BEGINNING OF YEAR | 26,296 | 23,278 | 19,274 |
CASH AT END OF YEAR | 39,875 | 26,296 | 23,278 |
Cash paid during the year for income taxes | $ 5,151 | $ 4,846 | 5,341 |
Cash paid during the year for interest | $ 65 |
UTAH MEDICAL PRODUCTS, INC. CO7
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-In Capitol | Accumulated Other Comprehensive Income | Retained Earnings | Total |
Balance, value at Dec. 31, 2014 | $ 37 | $ 2,890 | $ (3,234) | $ 64,863 | $ 64,556 |
Balance, shares at Dec. 31, 2014 | 3,748 | ||||
Common stock issued upon exercise of employee stock options | $ 0 | 640 | 640 | ||
Common stock issued upon exercise of employee stock options, shares | 22 | ||||
Common stock received and retired upon exercise of stock options | $ 0 | (338) | (338) | ||
Common stock received and retired upon exercise of stock options, shares | (6) | ||||
Tax benefit attributable to appreciation of stock options | 114 | 114 | |||
Stock option compensation expense | 87 | 87 | |||
Common stock purchased and retired | $ 0 | (683) | (683) | ||
Common stock purchased and retired, shares | (13) | ||||
Foreign currency translation adjustment | (2,724) | (2,724) | |||
Unrealized holding gain (loss) from investments, available-for-sale, net of taxes | (2) | (2) | |||
Common stock dividends | (3,846) | (3,846) | |||
Net income | 11,843 | 11,843 | |||
Balance, value at Dec. 31, 2015 | $ 38 | 2,710 | (5,961) | 72,861 | 69,648 |
Balance, shares at Dec. 31, 2015 | 3,751 | ||||
Common stock issued upon exercise of employee stock options | $ 0 | 431 | 431 | ||
Common stock issued upon exercise of employee stock options, shares | 13 | ||||
Common stock received and retired upon exercise of stock options | $ 0 | (56) | (56) | ||
Common stock received and retired upon exercise of stock options, shares | (1) | ||||
Tax benefit attributable to appreciation of stock options | 50 | 50 | |||
Stock option compensation expense | 92 | 92 | |||
Common stock purchased and retired | $ (1) | (2,849) | (2,850) | ||
Common stock purchased and retired, shares | (50) | ||||
Foreign currency translation adjustment | (6,289) | (6,289) | |||
Unrealized holding gain (loss) from investments, available-for-sale, net of taxes | 5 | 5 | |||
Common stock dividends | (3,916) | (3,916) | |||
Net income | 12,128 | 12,128 | |||
Balance, value at Dec. 31, 2016 | $ 37 | 378 | (12,243) | 81,072 | 69,244 |
Balance, shares at Dec. 31, 2016 | 3,713 | ||||
Common stock issued upon exercise of employee stock options | $ 0 | 327 | 327 | ||
Common stock issued upon exercise of employee stock options, shares | 9 | ||||
Common stock received and retired upon exercise of stock options | $ 0 | (25) | (25) | ||
Common stock received and retired upon exercise of stock options, shares | 0 | ||||
Stock option compensation expense | 129 | 129 | |||
Foreign currency translation adjustment | 3,893 | 3,893 | |||
Unrealized holding gain (loss) from investments, available-for-sale, net of taxes | 10 | 10 | |||
Common stock dividends | (3,960) | (3,960) | |||
Net income | 8,505 | 8,505 | |||
Balance, value at Dec. 31, 2017 | $ 37 | $ 809 | $ (8,341) | $ 85,617 | $ 78,122 |
Balance, shares at Dec. 31, 2017 | 3,721 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Note 1 - Summary of Significant Accounting Policies | Note 1 – Summary of Significant Accounting Policies Organization Utah Medical Products, Inc. with headquarters in Midvale, Utah and its wholly-owned operating subsidiaries, Femcare Nikomed Ltd located in Romsey, Hampshire, England, Femcare Australia Pty Ltd located in Castle Hill, NSW, Australia, Utah Medical Products Canada, Inc. (dba Femcare Canada) located in Mississauga, Ontario, Canada and Utah Medical Products Ltd., which operates a manufacturing facility in Athlone, Ireland, (in the aggregate, the Company) are in the primary business of developing, manufacturing and globally distributing specialized medical devices for the healthcare industry. The Company’s broad range of products includes those used in critical care areas and the labor and delivery departments of hospitals, as well as outpatient clinics and physicians’ offices. Products are sold directly to end user facilities in the U.S., Ireland, UK, Canada, France and Australia, and through third party distributors in other outside the U.S. (OUS) markets. Domestically, UTMD has an exclusive distribution relationship with CooperSurgical, Inc. for the Filshie Clip System. UTMD also sells subcontract manufactured components and finished products to over 145 companies in the U.S. for their medical and non-medical products. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although actual results could differ from those estimates, management believes it has considered and disclosed all relevant information in making its estimates that materially affect reported performance and current values. Principles of Consolidation The consolidated financial statements include those of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Cash and Cash Equivalents For purposes of the consolidated statement of cash flows, the Company considers cash on deposit and short-term investments with original maturities of three months or less to be cash and cash equivalents. Investments The Company classifies its investments as “available-for-sale.” Securities classified as “available-for-sale” are carried in the financial statements at fair value. Realized gains and losses, determined using the specific identification method, are included in operations; unrealized holding gains and losses are reported as a separate component of accumulated other comprehensive income. Declines in fair value below cost that are other than temporary are included in operations. As of December 31, 2017 the Company retained a freely tradeable investment in Citigroup (C) (see note 3). Concentration of Credit Risk The primary concentration of credit risk consists of trade receivables. In the normal course of business, the Company provides credit terms to its customers. Accordingly, the Company performs ongoing credit evaluations of its customers and maintains allowances for possible losses which, when realized, have been within the range of management's expectations as reflected by its reserves. The Company's customer base consists of hospitals, medical device distributors, physician practices and others directly related to healthcare providers, as well as other manufacturing companies. Although the Company is affected by the well-being of the global healthcare industry, management does not believe significant trade receivable credit risk exists at December 31, 2017 except under an extreme global financial crisis. The Company maintains its cash in bank deposit accounts in addition to Fidelity Investment accounts. The Company has not experienced any losses in such accounts and believes it is not exposed to a significant credit risk on cash and cash equivalent balances. Accounts Receivable Accounts receivable are amounts due on product sales and are unsecured. Accounts receivable are carried at their estimated collectible amounts. Credit is generally extended on a short-term basis; thus accounts receivable do not bear interest although a late charge may be applied to such receivables that are past the due date. Accounts receivable are periodically evaluated for collectibility based on past credit history of customers and current market conditions. Provisions for losses on accounts receivable are determined on the basis of loss experience, known and inherent risk in the account balance and current economic conditions (see note 2). Inventories In 2017, the Company adopted Accounting Standard Update (ASU) 2015-11, “Inventory-Simplifying the Measurement of Inventory,” which changed how inventory is valued. Finished products, work-in-process, raw materials and supplies inventories are stated at the lower of cost and net realizable value (NRV) computed on a first-in, first-out method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The adoption of ASU 2015-11 did not have an impact on the Company’s financial statements (see note 2). Property and Equipment Property and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method over estimated useful lives as follows: Building and improvements 15 - 40 years Furniture, equipment and tooling 3 - 10 years Long-Lived Assets The Company evaluates its long-lived assets in accordance with Accounting Standards Codification (ASC) 360, “Accounting for the Impairment of Long-Lived Assets.” Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets, and is recorded in the period in which the determination was made. Intangible Assets Costs associated with the acquisition of patents, trademarks, trade names, customer relationships, regulatory approvals & product certifications, license rights and non-compete agreements are capitalized, and are being amortized using the straight-line method over periods ranging from 5 to 20 years. UTMD’s goodwill is tested for impairment annually, in the fourth quarter of each year, using a fair value measurement test, in accordance with ASC 350. UTMD also performs impairment tests contemporaneously, if circumstances change that would more than likely reduce the fair value of goodwill below its net book value. If UTMD determines that its goodwill is impaired, a second step is completed to measure the amount of the impairment loss. UTMD does not expect its goodwill to become impaired in the foreseeable future. Estimated future amortization expense on intangible assets currently held, using the 2017 year-end 1.3523 USD/GBP and.7815 USD/AUD currency exchange rates, is about $1,981 in 2018, $1,980 in 2019 and 2020, $1,974 in 2021, and $1,973 in 2022 (see note 2). Revenue Recognition The Company recognizes revenue at the time of product shipment as UTMD meets its contractual performance obligations to the customer at the time of shipment. Revenue recognized by UTMD is based upon the consideration to which UTMD is entitled from its customers as a result of shipping a physical product, in accordance with the documented arrangements and fixed contracts in which the selling price was fixed prior to the Company’s acceptance of an order. Revenue from service sales, which are immaterial to UTMD, is generally recognized when the service is completed and invoiced. As demonstrated by decades of experience in successful and consistent collections, there is very minor and insignificant uncertainty regarding the collectability of invoiced amounts reasonably within the terms of the Company’s contracts. There are circumstances under which insignificant revenue may be recognized when product is not shipped, which meet the criteria of ASU 2014-09: the Company provides engineering services, for example, design and production of manufacturing tooling that may be used in subsequent UTMD manufacturing of custom components for other companies. This revenue is recognized when UTMD’s performance obligations have been completed according to a fixed contractual agreement. UTMD includes handling fees charged to customers in revenues. Income Taxes The Company accounts for income taxes under ASC 740, “Accounting for Income Taxes,” whereby deferred taxes are computed under the asset and liability method. In November 2015, the FASB released ASU 2015-17, Income Taxes (Topic 740): Balance Sheet classification of Deferred Taxes. ASU 2015-17 requires that all deferred income taxes are classified as noncurrent in a classified statement of financial position. The Company adopted ASU 2015-17 retrospectively effective January 1, 2017. On December 22, 2017 the U.S. Tax Cuts and Jobs Act of 2017 (Tax Act) was signed into law. As a result of the Tax Act, the U.S. statutory tax rate was lowered from 35% to 21% effective January 1, 2018, among other changes. ASC 740 requires companies to recognize the effect of tax law changes in the period of enactment; therefore, UTMD was required to revalue its deferred tax assets and liabilities at December 31, 2017 at the new rate. The Tax Act contains a deemed repatriation transition tax (Transition Tax) on accumulated earnings and profits of the Company’s non-U.S. subsidiaries that have not been subject to U.S. tax. The Company plans to elect to pay its net Transition Tax over eight years. On December 22, 2017, the SEC issued SAB 118 which provides guidance on accounting for the impact of the Tax Act. SAB 118 provides a measurement period of up to one year from enactment for a company to complete its tax accounting under ASC 740. Once a company is able to make a reasonable estimate and record a provisional amount for effects of the Tax Act it is required to do so. Such provisional measurement amounts may change as remaining data is obtained, calculations are prepared and analysis and review are completed. During the fourth quarter of 2017, the Company recorded a provisional tax charge for the Transition Tax of $6,288 and a provisional tax charge of $228 for the re-measurement of its U.S. deferred tax balances. Both provisional tax amounts are the Company’s reasonable estimate of the impact of the Tax Act based on its understanding and available guidance. These provisional amounts may change as the Company receives additional clarification and implementation guidance. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, in Utah, in the United Kingdom, in Australia, in Ireland and in Canada. The Company recognizes interest accrued related to unrecognized tax benefits in interest expenses and any related penalties in income taxes. The Company did not recognize any tax-related interest expense or have any tax penalties in any of the three years 2015 through 2017. Legal Costs The Company has been involved in lawsuits which are an expected consequence of its operations and in the ordinary course of business. The Company maintains a reserve for legal costs which are probable and estimated based on previous experience and known risk. The reserve for legal costs at December 31, 2017 and 2016 was $182 and $134, respectively (see note 2). Earnings per Share The computation of basic earnings per common share is based on the weighted average number of shares outstanding during each year. The computation of earnings per common share assuming dilution is based on the weighted average number of shares outstanding during the year plus the weighted average common stock equivalents which would arise from the exercise of stock options outstanding using the treasury stock method and the average market price per share during the year. The shares (in thousands) used in the computation of the Company’s basic and diluted earnings per share are reconciled as follows: 2017 2016 2015 Weighted average number of shares outstanding – basic 3,718 3,751 3,752 Dilutive effect of stock options 19 15 20 Weighted average number of shares outstanding, assuming dilution 3,737 3,766 3,772 Presentation of Sales and Similar Taxes Sales tax on revenue-producing transactions is recorded as a liability when the sale occurs. UTMD is not required to withhold sales tax on OUS sales, and at least 90% of domestic 2017 sales were to customers who are tax exempt or who are in jurisdictions where UTMD is not required to withhold sales tax. Stock-Based Compensation At December 31, 2017, the Company has stock-based employee compensation plans, which are described more fully in note 9. The Company accounts for stock compensation under ASC 718, Share-Based Payment Translation of Foreign Currencies Assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at the applicable exchange rates at year-end. Net gains or losses resulting from the translation of the Company’s assets and liabilities are reflected as a separate component of stockholders’ equity. A negative translation impact on stockholders’ equity reflects a current relative U.S. Dollar value higher than at the point in time that assets were actually acquired in a foreign currency. A positive translation impact would result from a U.S. dollar weaker in value than at the point in time foreign assets were acquired. Year-end translation gains or losses of non-functional currency bank account balances, e.g. EUR and AUD balances held by the UK subsidiary, are recognized as non-operating income or expense, as applicable. Income and expense items are translated at the weighted average rate of exchange (based on when transactions actually occurred) during the year. |
Note 2 - Detail of Certain Bala
Note 2 - Detail of Certain Balance Sheet Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Note 2 - Detail of Certain Balance Sheet Accounts | Note 2 – Detail of Certain Balance Sheet Accounts December 31, 2017 2016 Accounts and other receivables: Accounts receivable $ 3,713 $ 3,289 Income tax receivable - 7 Accrued interest and other 14 11 Less allowance for doubtful accounts (104) (96) Total accounts and other receivables $ 3,623 $ 3,211 Inventories: Finished products $ 1,313 $ 1,327 Work-in-process 1,270 942 Raw materials 2,661 2,273 Total inventories $ 5,244 $ 4,542 Other intangible assets: Patents $ 2,183 $ 2,161 Non-compete agreements 135 123 Trademarks & trade names 9,921 9,074 Customer relationships 9,669 8,822 Regulatory approvals & product certifications 12,897 11,767 Total other intangible assets 34,805 31,947 Accumulated amortization (16,961) (13,683) Other intangible assets, net $ 17,844 $ 18,264 Accrued expenses: Income taxes payable $ 1,259 $ 799 Payroll and payroll taxes 1,199 1,117 Reserve for litigation costs 182 134 Other 1,706 66 Total accrued expenses $ 4,346 $ 2,116 |
Note 3 - Investments
Note 3 - Investments | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Note 3 - Investments | Note 3 – Investments The Company’s investments, classified as available-for-sale, consist of the following: December 31, 2017 2016 Investments, at cost $ 42 $ 42 Equity securities: -Unrealized holding gains 38 22 -Unrealized holding (losses) - - Investments, at fair value $ 80 $ 64 During the three years 2015 through 2017, UTMD did not have any proceeds from sales of available-for-sale securities. |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements and Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Note 4 - Fair Value Measurements and Financial Instruments | Note 4 – Fair Value Measurements and Financial Instruments The Company follows a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company uses the following valuation techniques to measure fair value for its assets and liabilities: Level 1 - Quoted market prices in active markets for identical assets or liabilities; Level 2 - Significant other observable inputs (e.g. quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs); Level 3 - Unobservable inputs for the asset or liability, which are valued based on management’s estimates of assumptions that market participants would use in pricing the asset or liability. The following table provides financial assets carried at fair value measured as of December 31 for the past two years: Level 1 Levels 2 & 3 Total 2017 2016 2016 2015 2017 2016 Equities $ 80 $ 64 $ - $ - $ 80 $ 64 Total $ 80 $ 64 $ - $ - $ 80 $ 64 None of the Company’s financial instruments, which are current assets and liabilities that could be readily traded, are held for trading purposes. Detail on investments is provided in note 3 above. The Company estimates that the fair value of all financial instruments at December 31, 2017 does not differ materially from the aggregate carrying value of its financial instruments recorded in the accompanying consolidated balance sheet. |
Note 5 - Property and Equipment
Note 5 - Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Note 5 - Property and Equipment | Note 5 – Property and Equipment Property and equipment consists of the following: December 31, 2017 2016 Land $ 1,339 $ 1,289 Buildings and improvements 15,350 10,914 Furniture, equipment and tooling 15,696 15,759 Construction-in-progress 13 2,061 Total 32,398 30,023 Accumulated depreciation (20,777) (20,057) Property and equipment, net $ 11,621 $ 9,966 Included in the Company’s consolidated balance sheet are the assets of its manufacturing and administrative facilities in Utah, Canada, England, Australia and Ireland. Property and equipment, by geographic area, are as follows: December 31, 2017 U.S. & Canada England & Australia Ireland Total Land $ 926 $ - $ 413 $ 1,339 Buildings and improvements 6,583 4,361 4,406 15,350 Furniture, equipment and tooling 14,124 427 1,145 15,696 Construction-in-progress 10 3 - 13 Total 21,643 4,791 5,964 32,398 Accumulated depreciation (17,270) (346) (3,161) (20,777) Property and equipment, net $ 4,373 $ 4,445 $ 2,803 $ 11,621 December 31, 2016 U.S. & Canada England & Australia Ireland Total Land $ 926 $ - $ 362 $ 1,289 Buildings and improvements 6,523 523 3,869 10,914 Furniture, equipment and tooling 14,233 529 996 15,759 Construction-in-progress - 2,057 4 2,061 Total 21,682 3,109 5,231 30,023 Accumulated depreciation (17,063) (376) (2,617) (20,057) Property and equipment, net $ 4,619 $ 2,733 $ 2,614 $ 9,966 |
Note 6 - Long-term Debt
Note 6 - Long-term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Note 6 - Long-term Debt | Note 6 – Long-term Debt In March 2011, the Company obtained a $14,000 loan from JPMorgan Chase Bank, N.A. and a $12,934 loan from JP Morgan Chase, London Branch to help finance UTMD’s purchase of Femcare. The notes were fully paid off in February 2015. |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Note 7 - Commitments and Contingencies | Note 7 – Commitments and Contingencies Operating Leases The Company has a lease agreement for land adjoining its Utah facility for a term of forty years commencing on September 1, 1991. On September 1, 2001 and subsequent to each fifth lease year, the basic rental was and will be adjusted for published changes in a price index. The Company also leases an automobile for an employee in Ireland, and prior to late 2017, leased its UK facility. Rent expense charged to operations under these operating lease agreements was approximately $160, $175 and $184 for the years ended December 31, 2017, 2016 and 2015, respectively. Future minimum lease payments under its lease obligations as of December 31, 2017 were as follows: Years ending December 31: Amount 2018 $ 83 2019 45 2020 45 2021 45 2022 45 Thereafter 398 Total future minimum lease payments $ 661 Purchase Obligations The Company has obligations to purchase raw materials for use in its manufacturing operations. The Company has the right to make changes in, among other things, purchase quantities, delivery schedules and order acceptance. Product Liability Except for its Filshie Clip System, the Company is self-insured for product liability risk. “Product liability” is an insurance industry term for the cost of legal defense and possible damages awarded as a result of use of a company’s product during a procedure which results in an injury of a patient. The Company maintains a reserve for product liability litigation and damages consistent with its previous long-term experience. Actual product liability litigation costs and damages during the last three reporting years have been immaterial, which is consistent with the Company’s overall history. Femcare’s product liability indemnity limit through an independent insurer is £5 million each claim and in the annual aggregate. The Company absorbs the costs of clinical training and trouble-shooting in its on-going operating expenses. Warranty Reserve The Company’s published warranty is: “UTMD warrants its products to conform in all material respects to all published product specifications in effect on the date of shipment, and to be free from defects in material and workmanship for a period of thirty (30) days for supplies, or twenty-four (24) months for equipment, from date of shipment. During the warranty period UTMD shall, at its option, replace any products shown to UTMD's reasonable satisfaction to be defective at no expense to the Purchaser or refund the purchase price.” UTMD maintains a warranty reserve to provide for estimated costs which are likely to occur. The amount of this reserve is adjusted, as required, to reflect its actual experience. Based on its analysis of historical warranty claims and its estimate that existing warranty obligations are immaterial, no warranty reserve was made at December 31, 2017 or December 31, 2016. Litigation The Company has been involved in lawsuits which are an expected consequence of its operations and in the ordinary course of business. Presently, there is no litigation or threatened litigation for which the Company believes the outcome may be material to its financial results. The Company applies its accounting policy to accrue legal costs that can be reasonably estimated. |
Note 8 - Income Taxes
Note 8 - Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Note 8 - Income Taxes | Note 8 – Income Taxes Deferred tax assets (liabilities) consist of the following temporary differences: December 31, 2017 2016 Inventory write-downs and differences due to UNICAP $ 56 $ 98 Allowance for doubtful accounts 16 25 Accrued liabilities and reserves 89 147 Other - foreign 4 (23) Depreciation and amortization (3,789) (4,277) Unrealized investment gains 66 105 Deferred income taxes, net $ (3,558) $ (3,925) The components of income tax expense are as follows: Years ended December 31, 2017 2016 2015 Current $ 10,944 $ 5,467 $ 4,877 Deferred (367) (1,173) (1,175) Total $ 10,577 $ 4,294 $ 3,702 Income tax expense differed from amounts computed by applying the statutory federal rate to pretax income as follows: Years ended December 31, 2017 2016 2015 Federal income tax expense at the statutory rate $ 3,086 $ 2,998 $ 2,704 State income taxes 299 291 262 Foreign income taxes (blended rate) 1,444 1,270 990 ETI, manufacturing deduction and tax credits (303) (287) (257) Deemed repatriation transition tax 6,288 - - Effective federal rate change (228) - - Other (9) 22 3 Total $ 10,577 $ 4,294 $ 3,702 The domestic and foreign components of income before income tax expense were as follows: Years ended December 31, 2017 2016 2015 Domestic $ 9,124 $ 8,688 $ 7,973 Foreign 9,958 7,734 7,572 Total $ 19,082 $ 16,422 $ 15,545 |
Note 9 - Options
Note 9 - Options | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Note 9 - Options | Note 9 – Options The Company has stock option plans which authorize the grant of stock options to eligible employees, directors and other individuals to purchase up to an aggregate of 307 thousand shares of common stock, of which 54 thousand are outstanding as of December 31, 2017. All options granted under the plans are granted at current market value at the date of grant, and may be exercised between six months and ten years following the date of grant. The plans are intended to advance the interest of the Company by attracting and ensuring retention of competent directors, employees and executive personnel, and to provide incentives to those individuals to devote their utmost efforts to the advancement of stockholder value. Changes in stock options were as follows: Shares (000’s) Price Range Per Share 2017 Granted - $ - - - Expired or canceled 12 49.18 - 58.50 Exercised 9 24.00 - 49.18 Total outstanding at December 31 54 24.00 - 58.50 Total exercisable at December 31 39 24.00 - 58.50 2016 Granted 28 $ 58.50 - 58.50 Expired or canceled 3 49.18 - 49.18 Exercised 13 24.00 - 49.18 Total outstanding at December 31 75 24.00 - 58.50 Total exercisable at December 31 36 24.00 - 50.72 2015 Granted - $ - - - Expired or canceled 7 26.58 - 49.18 Exercised 22 21.68 - 49.18 Total outstanding at December 31 62 24.00 - 50.72 Total exercisable at December 31 41 24.00 - 50.72 For the years ended December 31, 2017, 2016 and 2015, the Company reduced current income taxes payable by $38, $50 and $114, respectively, for the income tax benefit attributable to sale by optionees of common stock received upon the exercise of stock options. Stock-Based Compensation In 2017, the Company recognized $129 in equity compensation cost, compared to $92 in 2016 and $87 in 2015. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: Years ended December 31, 2017 2016 2015 Expected dividend amount per quarter $ - $ 0.2775 $ - Expected stock price volatility 28.0% Risk-free interest rate 1.30% Expected life of options 4.7 years The per share weighted average fair value of options granted during 2016 is $12.15. No options were granted in 2017 or 2015. All UTMD options vest over a four-year service period. Expected dividend amounts were estimated based on the actual cash dividend rate at the time the options were granted and an estimate of future dividends based on past dividend rate changes as well as management’s expectations of future dividend rates over the expected holding period of the options. Expected volatility is based on UTMD’s historical volatility over recent periods of time and trends in that volatility, giving weight to more recent periods. Risk free interest rates were estimated based on actual U.S. Treasury Securities Interest rates as reported by the Federal Reserve Bank for periods of time equivalent to the holding periods estimated for the options on the dates the options were granted. Expected term of options were estimated based on historical holding periods for similar options previously granted by UTMD to employees and directors. The following table summarizes information about stock options outstanding at December 31, 2017: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 24.00 - 33.30 16,361 2.92 $ 27.42 16,361 $ 27.72 49.18 - 58.50 37,979 7.44 53.28 22,264 51.02 $ 24.00 - 58.50 54,340 6.08 $ 45.50 38,625 $ 41.02 |
Note 10 - Geographic Informatio
Note 10 - Geographic Information | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Note 10 - Geographic Information | Note 10 – Geographic Information The Company had sales in the following geographic areas based on the customer’s country of domicile: 2017 2016 2015 United States $ 20,286 $ 19,488 $ 20,364 Europe 8,519 7,989 7,720 Other 12,609 11,821 12,073 |
Note 11 - Geographic Long-Lived
Note 11 - Geographic Long-Lived Assets Information | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Note 11 - Geographic Long-Lived Assets Information | Note 11 – Long-lived Assets by Geographic Area The Company’s long-lived assets by geographic area were as follows: 2017 2016 2015 United States $ 10,866 $ 11,151 $ 11,097 England 28,604 26,710 31,901 Ireland 2,803 2,614 2,761 Australia 525 513 543 Canada 759 729 - |
Note 12 - Revenues by Product C
Note 12 - Revenues by Product Category | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Note 12 - Revenues by Product Category | Note 12 – Revenues by Product Category The Company had revenues in the following product categories: Product Category 2017 2016 2015 Obstetrics $ 4,499 $ 4,532 $ 4,587 Gynecology/Electrosurgery/Urology 23,175 20,683 22,356 Neonatal 6,154 6,007 6,299 Blood Pressure Monitoring and Accessories 7,586 8,076 6,915 |
Note 13 - Product Sale and Purc
Note 13 - Product Sale and Purchase Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Note 13 - Product Sale and Purchase Commitments | Note 13 - Product Sale and Purchase Commitments The Company has had license agreements for the rights to develop and market certain products or technologies owned by unrelated parties. The confidential terms of such agreements are unique and varied, depending on many factors relating to the value and stage of development of the technology licensed. Royalties on future product sales are a normal component of such agreements and are included in the CompanyÂ’s cost of goods sold on an ongoing basis. In 2017, 2016 and 2015, UTMD received royalties of $86, $91 and $93, respectively, for the use of intellectual property of Filshie Clip System as part of FemcareÂ’s exclusive U.S. distribution agreement with CooperSurgical Inc. UTMD had $2,191 in operating lease and purchase commitments as of December 31, 2017. |
Note 14 - Employee Benefit Plan
Note 14 - Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Note 14 - Employee Benefit Plans | Note 14 – Employee Benefit Plans The Company sponsors a contributory 401(k) savings plan for U.S. employees, and contributory retirement plans for Ireland, UK, Australia and Canada employees. The Company’s matching contribution is determined annually by the board of directors. Company contributions were approximately $153, $151 and $161 for the years ended December 31, 2017, 2016 and 2015, respectively. |
Note 15 - Recent Accounting Pro
Note 15 - Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Note 15 - Recent Accounting Pronouncements | Note 15 – Recent Accounting Pronouncements In March 2016, new accounting guidance was issued to simplify several aspects of accounting for employee share-based payment (including stock option) transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. Under the guidance, entities recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement. UTMD adopted this standard on January 1, 2017, which had an insignificant impact on its consolidated financial statements. UTMD made a determination to continue to account for forfeitures by estimating the number of awards that are expected to vest. Because UTMD primarily issues incentive stock options, excess tax benefits and tax deficiencies have historically been minimal. In May 2014, new accounting guidance (ASU 2014-09) was issued that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. UTMD adopted this new standard on January 1, 2018, using a full retrospective approach. In accordance with ASU 2014-09, UTMDs revenue recognition is based on its contracts and the performance obligations identified in them. With very insignificant and limited exceptions, the Company’s performance obligation is met when it ships a physical product to a customer. The basis on which UTMD recognizes revenue was updated on January 1, 2018, but it did not result in a change to the process and timing of revenue recognition, because the previous revenue recognition method complies with ASU 2014-09. Therefore, the adoption of ASU 2014-09 did not have an impact on UTMD’s financial statements. In February 2016, new accounting guidance was issued which requires recording most leases on the balance sheet. The new lease standard requires disclosure of key information about lease arrangements and aligns many of the underlying principles of this new model with those in the new revenue recognition standard noted above. This guidance becomes effective for annual reporting periods beginning after December 15, 2018, with early adoption permitted. UTMD has yet to assess the impact that this standard will have on its consolidated financial statements when it is adopted. The only significant lease the Company anticipates it will have at that time is for the parking lot at its Utah facility (see Note 7). |
Note 16 - Subsequent Events
Note 16 - Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Note 16 - Subsequent Events | Note 16 – Subsequent Events The Company evaluated its December 31, 2017 financial statements for subsequent events through the date the financial statements were issued. The Company is not aware of any subsequent events which would require recognition or disclosure in the financial statements. |
Note 1 - Summary of Significa24
Note 1 - Summary of Significant Accounting Policies: Use of Estimates in The Preparation of Financial Statements (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Use of Estimates in The Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although actual results could differ from those estimates, management believes it has considered and disclosed all relevant information in making its estimates that materially affect reported performance and current values. |
Note 1 - Summary of Significa25
Note 1 - Summary of Significant Accounting Policies: Principles of Consolidation (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include those of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Note 1 - Summary of Significa26
Note 1 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the consolidated statement of cash flows, the Company considers cash on deposit and short-term investments with original maturities of three months or less to be cash and cash equivalents. |
Note 1 - Summary of Significa27
Note 1 - Summary of Significant Accounting Policies: Investments (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Investments | Investments The Company classifies its investments as “available-for-sale.” Securities classified as “available-for-sale” are carried in the financial statements at fair value. Realized gains and losses, determined using the specific identification method, are included in operations; unrealized holding gains and losses are reported as a separate component of accumulated other comprehensive income. Declines in fair value below cost that are other than temporary are included in operations. As of December 31, 2017 the Company retained a freely tradeable investment in Citigroup (C) (see note 3). |
Note 1 - Summary of Significa28
Note 1 - Summary of Significant Accounting Policies: Concentration of Credit Risk (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Concentration of Credit Risk | Concentration of Credit Risk The primary concentration of credit risk consists of trade receivables. In the normal course of business, the Company provides credit terms to its customers. Accordingly, the Company performs ongoing credit evaluations of its customers and maintains allowances for possible losses which, when realized, have been within the range of management's expectations as reflected by its reserves. The Company's customer base consists of hospitals, medical device distributors, physician practices and others directly related to healthcare providers, as well as other manufacturing companies. Although the Company is affected by the well-being of the global healthcare industry, management does not believe significant trade receivable credit risk exists at December 31, 2017 except under an extreme global financial crisis. The Company maintains its cash in bank deposit accounts in addition to Fidelity Investment accounts. The Company has not experienced any losses in such accounts and believes it is not exposed to a significant credit risk on cash and cash equivalent balances. |
Note 1 - Summary of Significa29
Note 1 - Summary of Significant Accounting Policies: Accounts Receivable (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Accounts Receivable | Accounts Receivable Accounts receivable are amounts due on product sales and are unsecured. Accounts receivable are carried at their estimated collectible amounts. Credit is generally extended on a short-term basis; thus accounts receivable do not bear interest although a late charge may be applied to such receivables that are past the due date. Accounts receivable are periodically evaluated for collectibility based on past credit history of customers and current market conditions. Provisions for losses on accounts receivable are determined on the basis of loss experience, known and inherent risk in the account balance and current economic conditions (see note 2). |
Note 1 - Summary of Significa30
Note 1 - Summary of Significant Accounting Policies: Inventories (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Inventories | Inventories In 2017, the Company adopted Accounting Standard Update (ASU) 2015-11, “Inventory-Simplifying the Measurement of Inventory,” which changed how inventory is valued. Finished products, work-in-process, raw materials and supplies inventories are stated at the lower of cost and net realizable value (NRV) computed on a first-in, first-out method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The adoption of ASU 2015-11 did not have an impact on the Company’s financial statements (see note 2). |
Note 1 - Summary of Significa31
Note 1 - Summary of Significant Accounting Policies: Property and Equipment (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method over estimated useful lives as follows: Building and improvements 15 - 40 years Furniture, equipment and tooling 3 - 10 years |
Note 1 - Summary of Significa32
Note 1 - Summary of Significant Accounting Policies: Long-lived Assets (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Long-lived Assets | Long-Lived Assets The Company evaluates its long-lived assets in accordance with Accounting Standards Codification (ASC) 360, “Accounting for the Impairment of Long-Lived Assets.” Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets, and is recorded in the period in which the determination was made. |
Note 1 - Summary of Significa33
Note 1 - Summary of Significant Accounting Policies: Intangible Assets (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Intangible Assets | Intangible Assets Costs associated with the acquisition of patents, trademarks, trade names, customer relationships, regulatory approvals & product certifications, license rights and non-compete agreements are capitalized, and are being amortized using the straight-line method over periods ranging from 5 to 20 years. UTMDÂ’s goodwill is tested for impairment annually, in the fourth quarter of each year, using a fair value measurement test, in accordance with ASC 350. UTMD also performs impairment tests contemporaneously, if circumstances change that would more than likely reduce the fair value of goodwill below its net book value. If UTMD determines that its goodwill is impaired, a second step is completed to measure the amount of the impairment loss. UTMD does not expect its goodwill to become impaired in the foreseeable future. Estimated future amortization expense on intangible assets currently held, using the 2017 year-end 1.3523 USD/GBP and.7815 USD/AUD currency exchange rates, is about $1,981 in 2018, $1,980 in 2019 and 2020, $1,974 in 2021, and $1,973 in 2022 (see note 2). |
Note 1 - Summary of Significa34
Note 1 - Summary of Significant Accounting Policies: Revenue Recognition (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue at the time of product shipment as UTMD meets its contractual performance obligations to the customer at the time of shipment. Revenue recognized by UTMD is based upon the consideration to which UTMD is entitled from its customers as a result of shipping a physical product, in accordance with the documented arrangements and fixed contracts in which the selling price was fixed prior to the CompanyÂ’s acceptance of an order. Revenue from service sales, which are immaterial to UTMD, is generally recognized when the service is completed and invoiced. As demonstrated by decades of experience in successful and consistent collections, there is very minor and insignificant uncertainty regarding the collectability of invoiced amounts reasonably within the terms of the CompanyÂ’s contracts. There are circumstances under which insignificant revenue may be recognized when product is not shipped, which meet the criteria of ASU 2014-09: the Company provides engineering services, for example, design and production of manufacturing tooling that may be used in subsequent UTMD manufacturing of custom components for other companies. This revenue is recognized when UTMDÂ’s performance obligations have been completed according to a fixed contractual agreement. UTMD includes handling fees charged to customers in revenues. |
Note 1 - Summary of Significa35
Note 1 - Summary of Significant Accounting Policies: Income Taxes (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Income Taxes | Income Taxes The Company accounts for income taxes under ASC 740, “Accounting for Income Taxes,” whereby deferred taxes are computed under the asset and liability method. In November 2015, the FASB released ASU 2015-17, Income Taxes (Topic 740): Balance Sheet classification of Deferred Taxes. ASU 2015-17 requires that all deferred income taxes are classified as noncurrent in a classified statement of financial position. The Company adopted ASU 2015-17 retrospectively effective January 1, 2017. On December 22, 2017 the U.S. Tax Cuts and Jobs Act of 2017 (Tax Act) was signed into law. As a result of the Tax Act, the U.S. statutory tax rate was lowered from 35% to 21% effective January 1, 2018, among other changes. ASC 740 requires companies to recognize the effect of tax law changes in the period of enactment; therefore, UTMD was required to revalue its deferred tax assets and liabilities at December 31, 2017 at the new rate. The Tax Act contains a deemed repatriation transition tax (Transition Tax) on accumulated earnings and profits of the Company’s non-U.S. subsidiaries that have not been subject to U.S. tax. The Company plans to elect to pay its net Transition Tax over eight years. On December 22, 2017, the SEC issued SAB 118 which provides guidance on accounting for the impact of the Tax Act. SAB 118 provides a measurement period of up to one year from enactment for a company to complete its tax accounting under ASC 740. Once a company is able to make a reasonable estimate and record a provisional amount for effects of the Tax Act it is required to do so. Such provisional measurement amounts may change as remaining data is obtained, calculations are prepared and analysis and review are completed. During the fourth quarter of 2017, the Company recorded a provisional tax charge for the Transition Tax of $6,288 and a provisional tax charge of $228 for the re-measurement of its U.S. deferred tax balances. Both provisional tax amounts are the Company’s reasonable estimate of the impact of the Tax Act based on its understanding and available guidance. These provisional amounts may change as the Company receives additional clarification and implementation guidance. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, in Utah, in the United Kingdom, in Australia, in Ireland and in Canada. The Company recognizes interest accrued related to unrecognized tax benefits in interest expenses and any related penalties in income taxes. The Company did not recognize any tax-related interest expense or have any tax penalties in any of the three years 2015 through 2017. |
Note 1 - Summary of Significa36
Note 1 - Summary of Significant Accounting Policies: Legal Costs (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Legal Costs | Legal Costs The Company has been involved in lawsuits which are an expected consequence of its operations and in the ordinary course of business. The Company maintains a reserve for legal costs which are probable and estimated based on previous experience and known risk. The reserve for legal costs at December 31, 2017 and 2016 was $182 and $134, respectively (see note 2). |
Note 1 - Summary of Significa37
Note 1 - Summary of Significant Accounting Policies: Earnings Per Share (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Earnings Per Share | Earnings per Share The computation of basic earnings per common share is based on the weighted average number of shares outstanding during each year. The computation of earnings per common share assuming dilution is based on the weighted average number of shares outstanding during the year plus the weighted average common stock equivalents which would arise from the exercise of stock options outstanding using the treasury stock method and the average market price per share during the year. The shares (in thousands) used in the computation of the Company’s basic and diluted earnings per share are reconciled as follows: 2017 2016 2015 Weighted average number of shares outstanding – basic 3,718 3,751 3,752 Dilutive effect of stock options 19 15 20 Weighted average number of shares outstanding, assuming dilution 3,737 3,766 3,772 |
Note 1 - Summary of Significa38
Note 1 - Summary of Significant Accounting Policies: Presentation of Sales and Similar Taxes (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Presentation of Sales and Similar Taxes | Presentation of Sales and Similar Taxes Sales tax on revenue-producing transactions is recorded as a liability when the sale occurs. UTMD is not required to withhold sales tax on OUS sales, and at least 90% of domestic 2017 sales were to customers who are tax exempt or who are in jurisdictions where UTMD is not required to withhold sales tax. |
Note 1 - Summary of Significa39
Note 1 - Summary of Significant Accounting Policies: Stock-based Compensation (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Stock-based Compensation | Stock-Based Compensation At December 31, 2017, the Company has stock-based employee compensation plans, which are described more fully in note 9. The Company accounts for stock compensation under ASC 718, Share-Based Payment |
Note 1 - Summary of Significa40
Note 1 - Summary of Significant Accounting Policies: Translation of Foreign Currencies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Translation of Foreign Currencies | Translation of Foreign Currencies Assets and liabilities of the CompanyÂ’s foreign subsidiaries are translated into U.S. dollars at the applicable exchange rates at year-end. Net gains or losses resulting from the translation of the CompanyÂ’s assets and liabilities are reflected as a separate component of stockholdersÂ’ equity. A negative translation impact on stockholdersÂ’ equity reflects a current relative U.S. Dollar value higher than at the point in time that assets were actually acquired in a foreign currency. A positive translation impact would result from a U.S. dollar weaker in value than at the point in time foreign assets were acquired. Year-end translation gains or losses of non-functional currency bank account balances, e.g. EUR and AUD balances held by the UK subsidiary, are recognized as non-operating income or expense, as applicable. Income and expense items are translated at the weighted average rate of exchange (based on when transactions actually occurred) during the year. |
Note 1 - Summary of Significa41
Note 1 - Summary of Significant Accounting Policies: Earnings Per Share: Schedule of Weighted Average Number of Shares (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Weighted Average Number of Shares | 2017 2016 2015 Weighted average number of shares outstanding – basic 3,718 3,751 3,752 Dilutive effect of stock options 19 15 20 Weighted average number of shares outstanding, assuming dilution 3,737 3,766 3,772 |
Note 2 - Detail of Certain Ba42
Note 2 - Detail of Certain Balance Sheet Accounts: Schedule of Accounts and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Accounts and Other Receivables | December 31, 2017 2016 Accounts and other receivables: Accounts receivable $ 3,713 $ 3,289 Income tax receivable - 7 Accrued interest and other 14 11 Less allowance for doubtful accounts (104) (96) Total accounts and other receivables $ 3,623 $ 3,211 |
Note 2 - Detail of Certain Ba43
Note 2 - Detail of Certain Balance Sheet Accounts: Schedule of Inventory, Current (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Inventory, Current | Inventories: Finished products $ 1,313 $ 1,327 Work-in-process 1,270 942 Raw materials 2,661 2,273 Total inventories $ 5,244 $ 4,542 |
Note 2 - Detail of Certain Ba44
Note 2 - Detail of Certain Balance Sheet Accounts: Schedule of Finite-Lived Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Finite-Lived Intangible Assets | Other intangible assets: Patents $ 2,183 $ 2,161 Non-compete agreements 135 123 Trademarks & trade names 9,921 9,074 Customer relationships 9,669 8,822 Regulatory approvals & product certifications 12,897 11,767 Total other intangible assets 34,805 31,947 Accumulated amortization (16,961) (13,683) Other intangible assets, net $ 17,844 $ 18,264 |
Note 2 - Detail of Certain Ba45
Note 2 - Detail of Certain Balance Sheet Accounts: Schedule of Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Accrued Expenses | Accrued expenses: Income taxes payable $ 1,259 $ 799 Payroll and payroll taxes 1,199 1,117 Reserve for litigation costs 182 134 Other 1,706 66 Total accrued expenses $ 4,346 $ 2,116 |
Note 3 - Investments_ Schedule
Note 3 - Investments: Schedule of Available-for-sale Securities Reconciliation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Available-for-sale Securities Reconciliation | December 31, 2017 2016 Investments, at cost $ 42 $ 42 Equity securities: -Unrealized holding gains 38 22 -Unrealized holding (losses) - - Investments, at fair value $ 80 $ 64 |
Note 4 - Fair Value Measureme47
Note 4 - Fair Value Measurements and Financial Instruments: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Level 1 Levels 2 & 3 Total 2017 2016 2016 2015 2017 2016 Equities $ 80 $ 64 $ - $ - $ 80 $ 64 Total $ 80 $ 64 $ - $ - $ 80 $ 64 |
Note 5 - Property and Equipme48
Note 5 - Property and Equipment: Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Property, Plant and Equipment | December 31, 2017 2016 Land $ 1,339 $ 1,289 Buildings and improvements 15,350 10,914 Furniture, equipment and tooling 15,696 15,759 Construction-in-progress 13 2,061 Total 32,398 30,023 Accumulated depreciation (20,777) (20,057) Property and equipment, net $ 11,621 $ 9,966 |
Note 5 - Property and Equipme49
Note 5 - Property and Equipment: Property Plant and Equipment by Location (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Property Plant and Equipment by Location | December 31, 2017 U.S. & Canada England & Australia Ireland Total Land $ 926 $ - $ 413 $ 1,339 Buildings and improvements 6,583 4,361 4,406 15,350 Furniture, equipment and tooling 14,124 427 1,145 15,696 Construction-in-progress 10 3 - 13 Total 21,643 4,791 5,964 32,398 Accumulated depreciation (17,270) (346) (3,161) (20,777) Property and equipment, net $ 4,373 $ 4,445 $ 2,803 $ 11,621 December 31, 2016 U.S. & Canada England & Australia Ireland Total Land $ 926 $ - $ 362 $ 1,289 Buildings and improvements 6,523 523 3,869 10,914 Furniture, equipment and tooling 14,233 529 996 15,759 Construction-in-progress - 2,057 4 2,061 Total 21,682 3,109 5,231 30,023 Accumulated depreciation (17,063) (376) (2,617) (20,057) Property and equipment, net $ 4,619 $ 2,733 $ 2,614 $ 9,966 |
Note 7 - Commitments and Cont50
Note 7 - Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Future Minimum Rental Payments for Operating Leases | Years ending December 31: Amount 2018 $ 83 2019 45 2020 45 2021 45 2022 45 Thereafter 398 Total future minimum lease payments $ 661 |
Note 8 - Income Taxes_ Schedule
Note 8 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | December 31, 2017 2016 Inventory write-downs and differences due to UNICAP $ 56 $ 98 Allowance for doubtful accounts 16 25 Accrued liabilities and reserves 89 147 Other - foreign 4 (23) Depreciation and amortization (3,789) (4,277) Unrealized investment gains 66 105 Deferred income taxes, net $ (3,558) $ (3,925) |
Note 8 - Income Taxes_ Schedu52
Note 8 - Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Components of Income Tax Expense (Benefit) | Years ended December 31, 2017 2016 2015 Current $ 10,944 $ 5,467 $ 4,877 Deferred (367) (1,173) (1,175) Total $ 10,577 $ 4,294 $ 3,702 |
Note 8 - Income Taxes_ Schedu53
Note 8 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | Years ended December 31, 2017 2016 2015 Federal income tax expense at the statutory rate $ 3,086 $ 2,998 $ 2,704 State income taxes 299 291 262 Foreign income taxes (blended rate) 1,444 1,270 990 ETI, manufacturing deduction and tax credits (303) (287) (257) Deemed repatriation transition tax 6,288 - - Effective federal rate change (228) - - Other (9) 22 3 Total $ 10,577 $ 4,294 $ 3,702 |
Note 8 - Income Taxes_ Schedu54
Note 8 - Income Taxes: Schedule of Income before Income Tax, Domestic and Foreign (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Income before Income Tax, Domestic and Foreign | Years ended December 31, 2017 2016 2015 Domestic $ 9,124 $ 8,688 $ 7,973 Foreign 9,958 7,734 7,572 Total $ 19,082 $ 16,422 $ 15,545 |
Note 9 - Options_ Schedule of S
Note 9 - Options: Schedule of Share-based Compensation, Stock Options, Activity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Share-based Compensation, Stock Options, Activity | Shares (000Â’s) Price Range Per Share 2017 Granted - $ - - - Expired or canceled 12 49.18 - 58.50 Exercised 9 24.00 - 49.18 Total outstanding at December 31 54 24.00 - 58.50 Total exercisable at December 31 39 24.00 - 58.50 2016 Granted 28 $ 58.50 - 58.50 Expired or canceled 3 49.18 - 49.18 Exercised 13 24.00 - 49.18 Total outstanding at December 31 75 24.00 - 58.50 Total exercisable at December 31 36 24.00 - 50.72 2015 Granted - $ - - - Expired or canceled 7 26.58 - 49.18 Exercised 22 21.68 - 49.18 Total outstanding at December 31 62 24.00 - 50.72 Total exercisable at December 31 41 24.00 - 50.72 |
Note 9 - Options_ Schedule of56
Note 9 - Options: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Years ended December 31, 2017 2016 2015 Expected dividend amount per quarter $ - $ 0.2775 $ - Expected stock price volatility 28.0% Risk-free interest rate 1.30% Expected life of options 4.7 years |
Note 9 - Options_ Schedule of57
Note 9 - Options: Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 24.00 - 33.30 16,361 2.92 $ 27.42 16,361 $ 27.72 49.18 - 58.50 37,979 7.44 53.28 22,264 51.02 $ 24.00 - 58.50 54,340 6.08 $ 45.50 38,625 $ 41.02 |
Note 10 - Geographic Informat58
Note 10 - Geographic Information: Schedule Of Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule Of Geographic Information | 2017 2016 2015 United States $ 20,286 $ 19,488 $ 20,364 Europe 8,519 7,989 7,720 Other 12,609 11,821 12,073 |
Note 11 - Geographic Long-Liv59
Note 11 - Geographic Long-Lived Assets Information: Schedule Of Long-Lived Assets By Geographic Area (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule Of Long-Lived Assets By Geographic Area | 2017 2016 2015 United States $ 10,866 $ 11,151 $ 11,097 England 28,604 26,710 31,901 Ireland 2,803 2,614 2,761 Australia 525 513 543 Canada 759 729 - |
Note 12 - Revenues by Product60
Note 12 - Revenues by Product Category: Schedule Of Revenues By Product Category (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule Of Revenues By Product Category | Product Category 2017 2016 2015 Obstetrics $ 4,499 $ 4,532 $ 4,587 Gynecology/Electrosurgery/Urology 23,175 20,683 22,356 Neonatal 6,154 6,007 6,299 Blood Pressure Monitoring and Accessories 7,586 8,076 6,915 |
Note 1 - Summary of Significa61
Note 1 - Summary of Significant Accounting Policies: Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Building and Building Improvements | Minimum | |
Property, Plant and Equipment, Useful Life | 15 years |
Building and Building Improvements | Maximum | |
Property, Plant and Equipment, Useful Life | 40 years |
Equipment | Minimum | |
Property, Plant and Equipment, Useful Life | 3 years |
Equipment | Maximum | |
Property, Plant and Equipment, Useful Life | 10 years |
Note 1 - Summary of Significa62
Note 1 - Summary of Significant Accounting Policies: Intangible Assets (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Details | |
Foreign Currency Exchange Rate Translation GBP to USD | 1.3523 |
Foreign Currency Exchange Rate Translation AUD to USD | 0.7815 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 1,981 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,980 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 1,980 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,974 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 1,973 |
Note 1 - Summary of Significa63
Note 1 - Summary of Significant Accounting Policies: Income Taxes (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Details | |
Effective Income Tax Rate Reconciliation TaxCuts And Jobs Act Of 2017 Transition Tax On Accumulated Foreign Earnings Amount | $ 6,288 |
TaxCuts And Jobs Act Of 2017 Incomplete Accounting Change In Tax Rate Provisional Income Tax Expense Benefit | $ 228 |
Note 1 - Summary of Significa64
Note 1 - Summary of Significant Accounting Policies: Legal Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Details | ||
Estimated Litigation Liability | $ 182 | $ 134 |
Note 1 - Summary of Significa65
Note 1 - Summary of Significant Accounting Policies: Earnings Per Share: Schedule of Weighted Average Number of Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Weighted Average Number of Shares Outstanding, Basic | 3,718 | 3,751 | 3,752 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 19 | 15 | 20 |
Weighted Average Number of Shares Outstanding, Diluted | 3,737 | 3,766 | 3,772 |
Note 1 - Summary of Significa66
Note 1 - Summary of Significant Accounting Policies: Stock-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Allocated Share-based Compensation Expense | $ 129 | $ 92 | $ 87 |
Note 2 - Detail of Certain Ba67
Note 2 - Detail of Certain Balance Sheet Accounts: Schedule of Accounts and Other Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Details | ||
Accounts Receivable, Gross, Current | $ 3,713 | $ 3,289 |
Income Taxes Receivable, Current | 7 | |
Interest Receivable and Other Assets | 14 | 11 |
Allowance for Doubtful Accounts Receivable, Current | (104) | (96) |
Accounts and Other Receivables, Net, Current | $ 3,623 | $ 3,211 |
Note 2 - Detail of Certain Ba68
Note 2 - Detail of Certain Balance Sheet Accounts: Schedule of Inventory, Current (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Details | ||
Inventory, Finished Goods, Net of Reserves | $ 1,313 | $ 1,327 |
Inventory, Work in Process, Gross | 1,270 | 942 |
Inventory, Raw Materials, Gross | 2,661 | 2,273 |
Inventories | $ 5,244 | $ 4,542 |
Note 2 - Detail of Certain Ba69
Note 2 - Detail of Certain Balance Sheet Accounts: Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Details | ||
Finite-Lived Patents, Gross | $ 2,183 | $ 2,161 |
Finite-Lived Noncompete Agreements, Gross | 135 | 123 |
Finite-Lived Trademarks, Gross | 9,921 | 9,074 |
Finite-Lived Customer Relationships, Gross | 9,669 | 8,822 |
Regulatory approvals & product certifications | 12,897 | 11,767 |
Other intangible assets | 34,805 | 31,947 |
Other intangible assets - accumulated amortization | (16,961) | (13,683) |
Finite-Lived Intangible Assets, Net | $ 17,844 | $ 18,264 |
Note 2 - Detail of Certain Ba70
Note 2 - Detail of Certain Balance Sheet Accounts: Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Details | ||
Accrued Income Taxes, Current | $ 1,259 | $ 799 |
Employee-related Liabilities, Current | 1,199 | 1,117 |
Estimated Litigation Liability, Current | 182 | 134 |
Other | 1,706 | 66 |
Accrued expenses | $ 4,346 | $ 2,116 |
Note 3 - Investments_ Schedul71
Note 3 - Investments: Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Details | ||
Available-for-sale Securities, Amortized Cost Basis | $ 42 | $ 42 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 38 | 22 |
Available-for-sale Securities, Equity Securities | $ 80 | $ 64 |
Note 4 - Fair Value Measureme72
Note 4 - Fair Value Measurements and Financial Instruments: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Measurements, Recurring | ||
Equity, Fair Value Disclosure | $ 80 | $ 64 |
Fair Value, Inputs, Level 1 | ||
Equity, Fair Value Disclosure | $ 80 | $ 64 |
Note 5 - Property and Equipme73
Note 5 - Property and Equipment: Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Details | ||
Land | $ 1,339 | $ 1,289 |
Buildings and Improvements, Gross | 15,350 | 10,914 |
Machinery and Equipment, Gross | 15,696 | 15,759 |
Construction in Progress, Gross | 13 | 2,061 |
Property, Plant and Equipment, Gross | 32,398 | 30,023 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (20,777) | (20,057) |
Property and equipment - net | $ 11,621 | $ 9,966 |
Note 5 - Property and Equipme74
Note 5 - Property and Equipment: Property Plant and Equipment by Location (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Land | $ 1,339 | $ 1,289 |
Buildings and Improvements, Gross | 15,350 | 10,914 |
Machinery and Equipment, Gross | 15,696 | 15,759 |
Construction in Progress, Gross | 13 | 2,061 |
Property, Plant and Equipment, Gross | 32,398 | 30,023 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (20,777) | (20,057) |
Property and equipment - net | 11,621 | 9,966 |
U.S. and Canada | ||
Land | 926 | 926 |
Buildings and Improvements, Gross | 6,583 | 6,523 |
Machinery and Equipment, Gross | 14,124 | 14,233 |
Construction in Progress, Gross | 10 | |
Property, Plant and Equipment, Gross | 21,643 | 21,682 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (17,270) | (17,063) |
Property and equipment - net | 4,373 | 4,619 |
England and Australia | ||
Buildings and Improvements, Gross | 4,361 | 523 |
Machinery and Equipment, Gross | 427 | 529 |
Construction in Progress, Gross | 3 | 2,057 |
Property, Plant and Equipment, Gross | 4,791 | 3,109 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (346) | (376) |
Property and equipment - net | 4,445 | 2,733 |
Ireland | ||
Land | 413 | 362 |
Buildings and Improvements, Gross | 4,406 | 3,869 |
Machinery and Equipment, Gross | 1,145 | 996 |
Construction in Progress, Gross | 4 | |
Property, Plant and Equipment, Gross | 5,964 | 5,231 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (3,161) | (2,617) |
Property and equipment - net | $ 2,803 | $ 2,614 |
Note 6 - Long-term Debt (Detail
Note 6 - Long-term Debt (Details) $ in Thousands | Dec. 31, 2017USD ($) |
JP Morgan Chase Bank NA (Chase) Note | |
Debt Instrument, Face Amount | $ 14,000 |
JP Morgan Chase London Branch Note | |
Debt Instrument, Face Amount | $ 12,934 |
Note 7 - Commitments and Cont76
Note 7 - Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Operating Leases, Rent Expense, Net | $ 160 | $ 175 | $ 184 |
Note 7 - Commitments and Cont77
Note 7 - Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Details | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 83 |
Operating Leases, Future Minimum Payments, Due in Two Years | 45 |
Operating Leases, Future Minimum Payments, Due in Three Years | 45 |
Operating Leases, Future Minimum Payments, Due in Four Years | 45 |
Operating Leases, Future Minimum Payments, Due in Five Years | 45 |
Operating Leases, Future Minimum Payments, Due Thereafter | 398 |
Operating Leases, Future Minimum Payments Due | $ 661 |
Note 8 - Income Taxes_ Schedu78
Note 8 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Details | ||
Deferred Tax Assets, Inventory | $ 56 | $ 98 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts | 16 | 25 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 89 | 147 |
Deferred Tax Assets, Other | 4 | (23) |
Deferred Tax Liabilities Depreciation and Amortization | (3,789) | (4,277) |
Unrealized investment loss | 66 | 105 |
Deferred Tax Assets, Net | $ (3,558) | $ (3,925) |
Note 8 - Income Taxes_ Schedu79
Note 8 - Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Current Income Tax Expense (Benefit) | $ 10,944 | $ 5,467 | $ 4,877 |
Deferred Income Tax Expense | (367) | (1,173) | (1,175) |
Provision for income taxes | $ 10,577 | $ 4,294 | $ 3,702 |
Note 8 - Income Taxes_ Schedu80
Note 8 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ 3,086 | $ 2,998 | $ 2,704 |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 299 | 291 | 262 |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | 1,444 | 1,270 | 990 |
Effective Income Tax Rate Reconciliation, Deduction, Qualified Production Activity, Amount | (303) | (287) | (257) |
Effective Income Tax Rate Reconciliation TaxCuts And Jobs Act Of 2017 Transition Tax On Accumulated Foreign Earnings Amount | 6,288 | ||
TaxCuts And Jobs Act Of 2017 Incomplete Accounting Change In Tax Rate Provisional Income Tax Expense Benefit | (228) | ||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | (9) | 22 | 3 |
Provision for income taxes | $ 10,577 | $ 4,294 | $ 3,702 |
Note 8 - Income Taxes_ Schedu81
Note 8 - Income Taxes: Schedule of Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ 9,124 | $ 8,688 | $ 7,973 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 9,958 | 7,734 | 7,572 |
Income before provision for income taxes | $ 19,082 | $ 16,422 | $ 15,545 |
Note 9 - Options (Details)
Note 9 - Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 307 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 54 | 75 | 62 |
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | $ 38 | $ 50 | $ 114 |
Allocated Share-based Compensation Expense | $ 129 | $ 92 | $ 87 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 12.15 |
Note 9 - Options_ Schedule of83
Note 9 - Options: Schedule of Share-based Compensation, Stock Options, Activity (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 28 | ||
Price Range Per Share Granted | - - - | 58.50 - 58.50 | - - - |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 12 | 3 | 7 |
Price Range Per Share Expired | 49.18 - 58.50 | 49.18 - 49.18 | 26.58 - 49.18 |
Price Range Per Share Exercised | 24.00 - 49.18 | 24.00 - 49.18 | 21.68 - 49.18 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 54 | 75 | 62 |
Price Range Per Share Outstanding | 24.00 - 58.50 | 24.00 - 58.50 | 24.00 - 50.72 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 39 | 36 | 41 |
Price Range Per Share Total Exercisable | 24.00 - 58.50 | 24.00 - 50.72 | 24.00 - 50.72 |
Common Stock | |||
Common stock issued upon exercise of employee stock options, shares | 9 | 13 | 22 |
Note 9 - Options_ Schedule of84
Note 9 - Options: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Details | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Payments | $ 0.2775 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 28.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.30% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years 8 months 12 days |
Note 9 - Options_ Schedule of85
Note 9 - Options: Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 24 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 58.50 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | shares | 54,340 |
Weighted Average Remaining Contractual Life (Years) | 6.08 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 45.50 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares | 38,625 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 41.02 |
Range 1 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 24 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 33.30 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | shares | 16,361 |
Weighted Average Remaining Contractual Life (Years) | 2.92 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 27.42 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares | 16,361 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 27.72 |
Range 2 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 49.18 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 58.50 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | shares | 37,979 |
Weighted Average Remaining Contractual Life (Years) | 7.44 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 53.28 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares | 22,264 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 51.02 |
Note 10 - Geographic Informat86
Note 10 - Geographic Information: Schedule Of Geographic Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Company Sales in the United States | $ 20,286 | $ 19,488 | $ 20,364 |
Company Sales in Europe | 8,519 | 7,989 | 7,720 |
Company Sales Other | $ 12,609 | $ 11,821 | $ 12,073 |
Note 11 - Geographic Long-Liv87
Note 11 - Geographic Long-Lived Assets Information: Schedule Of Long-Lived Assets By Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Details | |||
Long-lived assets in the United States | $ 10,866 | $ 11,151 | $ 11,097 |
Long-lived assets in England | 28,604 | 26,710 | 31,901 |
Long-lived assets in Ireland | 2,803 | 2,614 | 2,761 |
Long-lived assets in Australia | 525 | 513 | $ 543 |
Long-lived assets in Canada | $ 759 | $ 729 |
Note 12 - Revenues by Product88
Note 12 - Revenues by Product Category: Schedule Of Revenues By Product Category (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Company Revenue Obstetrics | $ 4,499 | $ 4,532 | $ 4,587 |
Company Revenue Gynecology/Electrosurgery/Urology | 23,175 | 20,683 | 22,356 |
Company Revenue Neonatal | 6,154 | 6,007 | 6,299 |
Company Revenue Blood Pressure Monitoring and Accessories | $ 7,586 | $ 8,076 | $ 6,915 |
Note 13 - Product Sale and Pu89
Note 13 - Product Sale and Purchase Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Royalty income | $ 86 | $ 91 | $ 93 |
Contractual Obligation | $ 2,191 |
Note 14 - Employee Benefit Pl90
Note 14 - Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 153 | $ 151 | $ 161 |