Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 23, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | INTRICON CORP | ||
Entity Central Index Key | 88,790 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 5,981,756 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 36,586,092 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements Of Operations [Abstract] | |||
Sales, net | $ 69,739 | $ 68,303 | $ 52,961 |
Cost of sales | 50,736 | 49,819 | 40,792 |
Gross profit | 19,003 | 18,484 | 12,169 |
Operating expenses: | |||
Sales and marketing | 3,919 | 3,699 | 3,308 |
General and administrative | 7,104 | 6,462 | 5,789 |
Research and development | 5,214 | 4,832 | 4,181 |
Restructuring charges (note 3) | 83 | 229 | |
Total operating expenses | 16,237 | 15,076 | 13,507 |
Operating income (loss) | 2,766 | 3,408 | (1,338) |
Interest expense | (369) | (461) | (600) |
Other income (expense), net | (261) | (1) | (135) |
Income (loss) from continuing operations before income taxes and discontinued operations | 2,136 | 2,946 | (2,073) |
Income tax expense | 19 | 428 | 217 |
Income (loss) before discontinued operations | 2,117 | 2,518 | (2,290) |
Loss on sale of discontinued operations (note 2) | (120) | ||
Loss from discontinued operations, net of income taxes (Note 2) | (150) | (3,872) | |
Net income (loss) | 2,117 | 2,248 | (6,162) |
Less: Loss allocated to non-controlling interest | (111) | ||
Net income (loss) attributable to IntriCon shareholders | $ 2,228 | $ 2,248 | $ (6,162) |
Basic income (loss) per share attributable to IntriCon shareholders: | |||
Continuing operations | $ 0.38 | $ 0.43 | $ (0.40) |
Discontinued operations | (0.05) | (0.68) | |
Net income (loss) per share: | 0.38 | 0.39 | (1.08) |
Diluted income (loss) per share attributable to IntriCon shareholders: | |||
Continuing operations | 0.36 | 0.42 | (0.40) |
Discontinued operations | (0.04) | (0.68) | |
Net income (loss) per share: | $ 0.36 | $ 0.37 | $ (1.08) |
Average shares outstanding: | |||
Basic | 5,907 | 5,791 | 5,699 |
Diluted | 6,241 | 6,038 | 5,699 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | |||
Net income (loss) | $ 2,117 | $ 2,248 | $ (6,162) |
Interest rate swap, net of taxes of $0 | (20) | 3 | 69 |
Pension and postretirement obligations, net of taxes of $0 | (195) | ||
Foreign currency translation adjustment, net of taxes of $0 | (104) | (74) | 2 |
Comprehensive income (loss) | $ 1,798 | $ 2,177 | $ (6,091) |
Consolidated Statements Of Com4
Consolidated Statements Of Comprehensive Income (Loss) (Parenthetical) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | |
Interest rate swap, tax | $ 0 |
Pension and postretirement obligations, tax | 0 |
Foreign currency translation adjustment, tax | $ 0 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash | $ 369 | $ 328 |
Restricted cash | 610 | 640 |
Accounts receivable, less allowance for doubtful accounts of $135 at December 31, 2015 and $120 at December 31, 2014 | 8,578 | 7,673 |
Inventories | 14,472 | 9,983 |
Other current assets | 860 | 1,013 |
Total current assets | 24,889 | 19,637 |
Property, plant, and equipment | 38,653 | 35,104 |
Less: Accumulated depreciation | 31,911 | 30,859 |
Net machinery and equipment | 6,742 | 4,245 |
Goodwill | 9,551 | 9,194 |
Investment in partnerships | 224 | 387 |
Other assets, net | 480 | 498 |
Total assets | 41,886 | 33,961 |
Current liabilities: | ||
Current maturities of long-term debt | 1,908 | 1,886 |
Accounts payable | 7,785 | 5,954 |
Accrued salaries, wages and commissions | 2,559 | 2,519 |
Deferred gain | 55 | 110 |
Other accrued liabilities | 1,279 | 1,364 |
Total current liabilities | 13,586 | 11,833 |
Long-term debt, less current maturities | 7,929 | 4,627 |
Other postretirement benefit obligations | 542 | 485 |
Accrued pension liabilities | 812 | 741 |
Deferred gain | 55 | |
Other long-term liabilities | 120 | 113 |
Total liabilities | $ 22,989 | $ 17,854 |
Commitments and contingencies (note 15) | ||
Equity: | ||
Common stock, $1.00 par value per share; 20,000 shares authorized; 5,981 and 5,844 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively | $ 5,981 | $ 5,844 |
Additional paid-in capital | 17,721 | 16,939 |
Accumulated deficit | (4,046) | (6,274) |
Accumulated other comprehensive loss | (721) | (402) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Total | 18,935 | 16,107 |
Non-controlling interest | (38) | |
Total equity | 18,897 | 16,107 |
Total liabilities and shareholders' equity | $ 41,886 | $ 33,961 |
Consolidated Condensed Balance6
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Consolidated Condensed Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 135 | $ 120 |
Common shares, par value | $ 1 | $ 1 |
Common shares, shares authorized | 20,000,000 | 20,000,000 |
Common shares, shares issued | 5,981,000 | 5,844,000 |
Common shares, shares outstanding | 5,981,000 | 5,844,000 |
Consolidated Condensed Statemen
Consolidated Condensed Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 2,117 | $ 2,248 | $ (6,162) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 1,755 | 2,182 | 2,450 |
Stock-based compensation | 579 | 457 | 532 |
Loss on impairment of long-lived assets and goodwill of discontinued operations | 1,700 | ||
Loss on disposition of property | 4 | ||
Change in deferred gain | (110) | (110) | (110) |
Change in allowance for doubtful accounts | 15 | (4) | (30) |
Equity in loss of partnerships | 208 | 228 | 262 |
Loss on sale of discontinued operations | 120 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | (842) | (2,183) | 1,327 |
Inventories | (4,329) | (677) | 1,221 |
Other assets | (13) | 301 | 500 |
Accounts payable | 1,588 | 626 | 707 |
Accrued expenses | (118) | (347) | (26) |
Other liabilities | (139) | 317 | (60) |
Net cash provided by operating activities | 711 | 3,158 | 2,315 |
Cash flows from investing activities: | |||
Proceeds from sale of property, plant and equipment | 66 | 39 | |
Proceeds of sale of discontinued operations | 500 | ||
Purchase of PC Werth (Note 4) | (197) | ||
Purchases of property, plant and equipment | (3,982) | (1,524) | (969) |
Other | (45) | ||
Net cash used in investing activities | (4,224) | (958) | (930) |
Cash flows from financing activities: | |||
Proceeds from long-term borrowings | 19,615 | 13,153 | 15,332 |
Repayments of long-term borrowings | (16,284) | (15,221) | (16,863) |
Proceeds from employee stock purchases and exercise of stock options | 340 | 165 | 145 |
Change in restricted cash | 60 | (32) | (18) |
Net cash provided by (used in) financing activities | 3,731 | (1,935) | (1,404) |
Effect of exchange rate changes on cash | (177) | (154) | 11 |
Net (decrease) increase in cash | 41 | 111 | (8) |
Cash, beginning of period | 328 | 217 | 225 |
Cash, end of period | $ 369 | $ 328 | $ 217 |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2012 | $ 5,687 | $ 15,797 | $ (2,360) | $ (402) | $ 18,722 | |
Balance, shares at Dec. 31, 2012 | 5,687 | |||||
Exercise of stock options | $ 14 | 28 | $ 42 | |||
Exercise of stock options, shares | 14 | 14 | ||||
Shares issued under the ESPP | $ 26 | 77 | $ 103 | |||
Shares issued under the ESPP, shares | 26 | |||||
Stock option expense | 532 | 532 | ||||
Net income (loss) | (6,162) | (6,162) | ||||
Comprehensive income (loss) | 71 | 71 | ||||
Balance at Dec. 31, 2013 | $ 5,727 | 16,434 | (8,522) | (331) | 13,308 | |
Balance, shares at Dec. 31, 2013 | 5,727 | |||||
Exercise of stock options | $ 100 | (43) | $ 57 | |||
Exercise of stock options, shares | 100 | 205 | ||||
Shares issued under the ESPP | $ 16 | 84 | $ 100 | |||
Shares issued under the ESPP, shares | 16 | |||||
Shares issued in lieu of cash for services | $ 1 | 7 | 8 | |||
Shares issued in lieu of cash for services, shares | 1 | |||||
Stock option expense | 457 | 457 | ||||
Net income (loss) | 2,248 | 2,248 | ||||
Comprehensive income (loss) | (71) | (71) | ||||
Balance at Dec. 31, 2014 | $ 5,844 | 16,939 | (6,274) | (402) | 16,107 | |
Balance, shares at Dec. 31, 2014 | 5,844 | |||||
Exercise of stock options | $ 123 | 112 | $ 235 | |||
Exercise of stock options, shares | 123 | 159 | ||||
Shares issued under the ESPP | $ 14 | 91 | $ 105 | |||
Shares issued under the ESPP, shares | 14 | |||||
Stock option expense | 579 | 579 | ||||
Net income (loss) | 2,228 | $ (111) | 2,117 | |||
Investment by non-controlling interest | 73 | 73 | ||||
Comprehensive income (loss) | (319) | (319) | ||||
Balance at Dec. 31, 2015 | $ 5,981 | $ 17,721 | $ (4,046) | $ (721) | $ (38) | $ 18,897 |
Balance, shares at Dec. 31, 2015 | 5,981 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary Of Significany Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Headquartered in Arden Hills, Minnesota, IntriCon Corporation (formerly Selas Corporation of America) (together with its subsidiaries, referred to as the Company, we, us or our) is an international company engaged in designing, developing, engineering, manufacturing and distributing body-worn devices. The Company designs, develops, engineers, manufactures and distributes micro-miniature products, microelectronics, micro-mechanical assemblies, complete assemblies and software solutions, primarily for the emerging value hearing health market, the medical bio-telemetry market and the professional audio communication market. In addition to its operations in the state of Minnesota, the Company has facilities in the state o f California, Singapore, Indonesia, the United Kingdom and Germany. Basis of Presentation – On June 13, 2013, the Company announced a global restructuring plan to accelerate future growth and reduce costs. As part of the restructuring, the Company disposed of the assets relating to its security and certain microphone and receiver operations . For all periods presented, the Company classified these businesses as discontinued operations, and, accordingly, has reclassified historical financial data presented herein. See further information in Notes 2 and 3. Consolidation – The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. Principles of Consolidation – The Company evaluates its voting and variable interests in entities on a qualitative and quantitative basis. The Company consolidates entities in which it concludes it has the power to direct the activities that most significantly impact an entity’s economic success and has the obligation to absorb losses or the right to receive benefits that could be significant to the entity. Non-Controlling Interests – The Company owns 50% of the earVenture joint venture . The remaining ownership is accounted for as a non-controlling interest and reported as part of equity in the consolidated financial statements. The Company allocates gains and losses to the non-controlling interest even when such allocation might result in a deficit balance, reducing the losses attribu ted to the controlling interest. C hanges in ownership interests are treated as equity transactions if the Company maintains control. Segment Disclosures – A business segment is a distinguishable component of an enterprise that is engaged in providing an individual product or service or a group of related products or services and that is subject to risks and returns that are different from those of other business segments. The Company’s segments have similar economic characteristics and are similar in the nature of the products sold, type of customers, methods used to distribute the Company’s products and regulatory environment. Management believes that the Company meets the criteria for aggregating the components of its only operating segment of continuing operations into a single reporting segment. Use of Estimates – The Company makes estimates and assumptions relating to the reporting of assets and liabilities, the recording of reported amounts of revenues and expenses and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements. Actual results could differ from those estimates. Considerable management judgment is necessary in estimating future cash flows and other factors affecting the valuation of goodwill, intangible assets, and employee benefit obligations including the operating and macroeconomic factors that may affect them. The Company uses historical financial information, internal plans and projections and industry information in making such estimates. Revenue Recognition – The Company recognizes revenue when the customer takes ownership, primarily upon product shipment, and assumes risk of loss, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists and the sales price is fixed or determinable. Customers have 30 days to notify the Company if the product is damaged or defective. Beyond that, there are no significant obligations that remain after shipment other than warranty obligations. Contracts with customers do not include product return rights, however, the Company may elect in certain circumstances to accept returns of products. The Company records revenue for product sales net of returns. Sales and use tax are reported on a net basis. The Company defers recognition of revenue on discounts to customers if discounts are considered significant. In general, the Company warrants its products to be free from defects in material and workmanship and will fully conform to and perform to specifications for a period of one year. The Company develops a warranty reserve based on historical experience. Shipping and Handling Costs –The Company includes shipping and handling revenues in sales and shipping and handling costs in cost of sales. Fair Value of Financial Instruments – The carrying value of cash, accounts receivable, notes payable, and trade accounts payables, approximate fair value because of the short maturity of those instruments. The fair values of the Company’s long-term debt obligations, pension an d post-retirement obligations approximate their carrying values based upon current market rates of interest. Concentration of Cash – The Company deposits its cash in what management believes are high credit quality financial institutions. The balance, at times, may exceed federally insured limits. Restricted Cash – Restricted cash consists of deposits required to secure a credit facility at our Singapore location and deposits required to fund retirement related benefits for certain employees. Accounts Receivable – The Company reviews customers’ credit history before extending unsecured credit and establishes an allowance for uncollectible accounts based upon factors surrounding the credit risk of specific customers and other information. Invoices are generally due 30 days after presentation. Accounts receivable over 30 days are considered past due. The Company does not accrue interest on past due accounts receivables. Receivables are written off once all collection attempts have failed and are based on individual credit evaluation and specific circumstances of the customer. The allowance for doubtful accounts balance was $135 and $120 as of December 31, 2015 and 2014, respectively. Inventories – Inventories are stated at the lower of cost or market. The cost of the inventories was determined by the first-in, first-out method. Property, Plant and Equipment – Property, plant and equipment are carried at cost. Depreciation is computed on a straight-line basis using estimated useful lives of 5 to 40 years for buildings and improvements and 3 to 12 years for machinery and equipment. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. Improvements are capitalized and expenditures for maintenance, repairs and minor renewals are charged to expense when incurred. At the time assets are retired or sold, the costs and accumulated depreciation are eliminated and the resulting gain or loss, if any, is reflected in the consolidated statement of operations. Depreciation expense was $ 1,524 , $ 1,955 , and $ 2,214 for the years ended December 31, 2015, 2014, and 2013, respectively. Impairment of Long-lived Assets and Long-lived Assets to be Disposed of – The Company reviews its long-lived assets, certain identifiable intangibles, and goodwill for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to future net undiscounted cash flows expected to be generated by the asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. As of December 31, 2015, the Company has determined that no impairment of long-lived assets from continuing operations exists. Goodwill is reviewed for impairment annually or more frequently if changes in circumstances or the occurrence of events suggest impairment exists. The Company utilizes the two-step impairment analysis and elected not to use the qualitative assessment or “step zero” approach. In the two-step impairment analysis, in step one, the fair value of each reporting unit is compared to its carrying value, including goodwill. If the fair value exceeds the carrying value, no impairment loss is recognized. If the carrying value exceeds the fair value, the goodwill of the reporting unit is potentially impaired and the Company completes step two in order to measure the impairment loss. In step two, the Company calculates the implied fair value of goodwill by deducting the fair value of all tangible and intangible net assets (including unrecognized intangible assets) of the reporting unit from the fair value of the reporting unit. If the implied fair value of goodwill is less than the carrying value of goodwill, the Company recognizes an impairment loss, in the period identified, equal to the difference. The Company has concluded that no impairment of goodwill or intangible assets occurred during the year ended December 31, 2015. Refer to Note 2 for loss on impairment of long lived assets during 2013. Other assets, net – The principal amounts included in other assets, net are technology fees and debt issuance costs. The debt issuance costs are being amortized over the related term utilizing the effective interest method and are included in interest expense, and the other assets are being amortized over their estimated useful life on a straight-line basis. Debt issuance cost included in interest expense was $72 , $ 56 and $ 35 for the years ended December 31, 2015, 2014, and 2013 , respectively. Amortization expense was $ 231 , $ 227 and $ 204 for the years ended December 31, 2015, 2014, and 2013 , respectively. Investments in Partnerships – Certain of the Company’s investments in equity securities are long-term, strategic investments in companies. The Company accounts for these investments under the equity method of accounting. Under the equity method the Company records the investment at the amount the Company paid and adjusts for the Company’s share of the investee’s income or loss and dividends paid. The investments are reviewed quarterly for changes in circumstances or the occurrence of events that suggest the Company’s investment may not be recoverable. To date there have been no impairment losses recognized. Income Taxes – Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, operating losses and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are established to the extent the future benefit from the deferred tax assets realization is more likely than not unable to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The deferred tax asset valuation allowance was $9,810 and $10,105 as of December 31, 2015 and 2014, respectively. The Company recognizes accrued interest and penalties related to uncertain tax positions in income tax expense. At December 31, 2015, the Company had no accrual for the payment of tax related interest and there was no tax interest or penalties recognized in the consolidated statements of operations. The Company’s federal and state tax returns are potentially open to examinations for fiscal years 2003-2005 and 2009-2015. Employee Benefit Obligations – The Company provides pension and health care insurance for certain domestic retirees and employees of its operations discontinued in 2005. These obligations have been included in continuing operations as the Company retained these obligations. The Company also provides retirement related benefits for certain foreign employees. The Company measures the costs of its obligation based on actuarial determinations. The net periodic costs are recognized as employees render the services necessary to earn the post-retirement benefit and the obligation is recorded on the consolidated balance sheet as accrued pension liabilities. Assumptions about the discount rate, the expected rate of return on plan assets and the future rate of compensation increases are determined by the Company. The Company believes the assumptions are within accepted guidelines and ranges. However, these actuarial assumptions could vary materially from actual results due to economic events and different rates of retirement, mortality and withdrawal. Stock Option and Equity Plans – Under the various Company stock-based compensation plans, executives, employees and outside directors receive awards of options to purchase common stock. Under all awards, the terms are fixed at the grant date. Generally, the exercise price equals the market price of the Company’s stock on the date of the grant. Options under the plans generally vest over three years, and have a maximum term of 10 years. One of the plans also permits the granting of stock awards, stock appreciation rights, restricted stock units and other equity based awards. The Company expenses grant-date fair values of stock options and awards ratably over the vesting period of the related share-based award. See Note 13 for additional information. Product Warranty – The Company offers a warranty on various products and services. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount of the reserve recorded is equal to the costs to repair or otherwise satisfy the claim. Patent Costs – Costs associated with the submission of a patent application are expensed as incurred given the uncertainty of the patents providing future economic benefit to the Company. Advertising Costs – Advertising costs are charged to expense as incurred. Research and Development Costs – Research and development costs, net of customer funding, amounted to $ 5,214 , $ 4,832 , and $ 4,181 in 2015, 2014 and 2013, respectively, and are charged to expense when incurred, net of customer funding. The Company accrues proceeds received under governmental grants when earned and estimable as a reduction to research and development expense. During the year ended December 31, 2013, the Company accrued $ 567 in research and development tax credit refunds received with the state of Minnesota as a reduction to research and development expense. Customer Funded Tooling Costs – The Company designs and develops molds and tools for reimbursement on behalf of several customers. Costs associated with the design and development of the molds and tools are charged to expense, net of the customer reimbursement amount. Net customer funded tooling resulted in income of $ 121 , $ 140 and $ 352 for the years ended December 31, 2015, 2014 and 2013, respectively, and is included in cost of goods sold in the consolidated statements of operations. Income (loss) Per Share – Basic income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year. Diluted income (loss) per common share reflects the potential dilution of securities that could share in the earnings. The Company uses the treasury stock method for calculating the dilutive effect of stock options. Comprehensive Income (Loss) – Comprehensive income (loss) consists of net income (loss), change in fair value of derivative instruments, pension and post-retirement obligations and foreign currency translation adjustments and is presented in the consolidated statements of comprehensive income (loss). Foreign Currency Translation - The Company’s German subsidiary accounts for its transactions in its functional currency, the Euro. The Company’s United Kingdom subsidiary accounts for its transactions in its functional currency, the British pound. Foreign assets and liabilities are translated into United States dollars using the year-end exchange rates. Equity is translated at average historical exchange rates. Results of operations are translated using the average exchange rates throughout the year. Translation gains or losses are accumulated as a separate component of equity. Derivative Financial Instruments — When deemed appropriate, the Company enters into derivative instruments. The Company does not use derivative financial instruments for speculative or trading purposes. All derivative transactions are linked to an existing balance sheet item or firm commitment, and the notional amount does not exceed the value of the exposure being hedged. We recognize all derivative financial instruments in the consolidated financial statements at fair value regardless of the purpose or intent for holding the instrument. Generally, changes in fair values of derivatives accounted for as cash flow hedges, to the extent they are effective as hedges, are recorded in other comprehensive income (loss), net of tax or, if ineffective, on the consolidated statements of operations. New Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) 2015-17, Income Taxes (Topic 740) Related to the Balance Sheet Classification of Deferred Taxes which will require entities to present deferred tax assets (DTAs) and deferred tax liabilities (DTLs) as noncurrent in a classified balance sheet. The ASU simplifies the current guidance (ASC 740-10-45-4), which requires entities to separately present DTAs and DTLs as current and noncurrent in a classified balance sheet. The ASU is effective for annual reporting periods beginning on or after December 15, 2016, and interim periods within those annual periods. The Company does not expect the provision of ASU 2015-17 to have a material impact on its consolidated financial statements. In July 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-11, Inventory (Topic 330) Related to Simplifying the Measurement of Inventory which applies to all inventory except inventory that is measured using last-in, first-out (“LIFO”) or the retail inventory method. Inventory measured using first-in, first-out (“FIFO”) or average cost is covered by the new amendments. Inventory within the scope of the new guidance should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments will take effect for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The new guidance should be applied prospectively, and earlier application is permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact of the standard on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. The Company does not expect the provision of ASU 2015-03 to have a material impact on its consolidated financial statements. In 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. The amendments in ASU 2015-05 provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments do not change the accounting for a customer's accounting for service contracts. As a result of the amendments, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. The Company is evaluating the impact of the standard on the consolidated financial statements. In May 2014, the FASB issued new accounting guidance related to revenue recognition. This new standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance will be effective for the Company beginning January 1, 2018 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. We are currently assessing the impact on the Company’s consolidated financial statements. In 2014, the FASb issued Accounting Standards Update ("ASU") No. 2014-15, 'Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, intended to define management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for the Company in the year ended December 31, 2016, and interim periods beginning March 31, 2017, with early application permitted. We do not anticipate a material impact to the consolidated financial statements once implemented. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | 2. DISCONTINUED OPERATIONS On June 13, 2013, the Company announced a global strategic restructuring plan designed to accelerate the Company’s future growth and reduce costs. See Note 3 for additional information. As part of the global strategic restructuring plan, the Company decided to exit the security and certain microphone and receiver operations. On January 27, 2014, the Company completed the sale of the security business and certain microphone and receiver operations of IntriCon Tibbetts Corporation, IntriCon’s wholly owned subsidiary based in Camden, Maine, to Sierra Peaks Corporation, pursuant to an Asset Purchase Agreement entered into on January 27, 2014 between Sierra Peaks Corporation, as the buyer, and IntriCon Tibbetts Corporation as the seller. Sierra Peaks Corporation paid $500 cash at closing for the assets and assumed certain operating liabilities of the businesses. The Company recorded a loss on the sale of $120 . The net loss was computed as follows: Accounts receivable, net $ 384 Inventory, net 128 Property, plant and equipment, net 127 Other assets 1 Accounts payable (69) Net assets sold $ 571 Cash proceeds received from Sierra Peaks 500 Net assets sold (571) Transaction costs (49) Loss on sale of discontinued operations, net of income taxes $ (120) The following table shows the results of the Company’s discontinued operations: Year Ended December 31, December 31, December 31, 2015 2014 2013 Sales, net $ - $ 207 $ 2,480 Operating costs and expenses - (357) (4,693) Loss on impairment - - (1,700) Operating loss - (150) (3,913) Other income, net - - 41 Net loss from discontinued operations $ - $ (150) $ (3,872) Management considered the global strategic restructuring plan a triggering event and therefore, in June 2013, the Company evaluated the related assets for impairment and recorded non-cash impairment charges of $983 to the Company’s results from discontinued operations. Throughout the remainder of 2013, the Company continued to evaluate the remaining assets for further impairment indicators and, with the continued decline in U.S. Government revenues due to the government sequestration and government shut-down, the Company concluded that an additional non-cash impairment charge of $717 was required for accounts receivable, inventory, fixed assets, and other assets. These charges were recorded in the Company’s results from discontinued operations for the year ended December 31, 2013. See further information below. In determining the nonrecurring fair value measurements of impairment of goodwill and other short and long-term assets, the Company utilized the market value approach, considering the fair value of security, microphone and receiver net assets held for sale or disposition. Based on the market value assessment, the Company determined fair values for the identified assets and incurred impairment charges for the remaining book value of the assets during the year ended December 31, 2013 as set forth in the table below. These charges were reflected in the Company’s discontinued operations in 2013. Fair value as of measurement date Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Impairment Charge Long-lived assets of discontinued operations $ 131 $ - $ - $ 131 $ 604 Goodwill of discontinued operations - - - - 515 Accounts Receivable 350 - - 350 73 Inventory 26 - - 26 468 Other Assets 3 - - 3 40 |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | 3. RESTRUCTURING CHARGES On June 13, 2013 the Company announced a global strategic restructuring plan designed to accelerate the Company’s future growth by focusing resources on the highest potential growth areas and reduce costs. The plan was approved by the Company’s Board of Directors on June 12, 2013. As part of this plan, the Company: reduced investment in certain non-core professional audio communications product lines; transferred specific product lines from Singapore to the Company’s lower-cost manufacturing facility in Batam, Indonesia; reduced global administrative and support workforce; transferred the medical coil operations from the Company’s Maine facility to Minnesota to better leverage existing manufacturing capacity; sold its remaining security, microphone and receiver operations; added experienced professionals in value hearing health; and focused more resources in medical biotelemetry. During 2014 and 2013, the Company incurred restructuring charges of $83 and $229 , respectively, primarily related to employee termination benefits, from the restructuring of its continuing operations. The Company does no t expect to incur any additional cash charges related to this restructuring. |
Acquisition Of PC Werth
Acquisition Of PC Werth | 12 Months Ended |
Dec. 31, 2015 | |
Acquisition Of PC Werth [Abstract] | |
Acquisition Of PC Werth | 4. ACQUISTION OF PC WERTH On November 3, 2015, the Company acquired the assets of PC Werth Ltd, a leading supplier of hearing healthcare products and equipment to the United Kingdom’s National Health Service (NHS). Under the terms of the agreement, the Company paid PC Werth Ltd a total of $197 in cash assumed payables of $393 . The Company accounted for the transaction as a business combination in the fourth quarter of 2015. In accordance with ASC 805, the purchase price is being allocated based on estimates of the fair value of assets acquired and liabilities assumed. The purchase price was allocated as follows: Inventory $ 155 Property, Plant and Equipment 39 Intellectual Property 39 Goodwill 357 Payables (393) $ 197 Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. The establishment of goodwill was primarily due to the expected revenue growth that is attributable to increased market penetration from future customers. The Company has recognized additional revenue of $414 and net earnings (losses) of approximately ( $265 ) relating to the sales of the hearing devices and accessories from November 2015 through December 31, 2015. Unaudited proforma revenues were approximately $73,900 and $73,500 for the years ended December 31, 2015 and 2014, respectively assuming the acquisition occurred on January 1, 2014. Unaudited proforma earnings and basic and diluted earnings per share did not differ materially from actual results reported. Acquisition costs of $143 were primarily incurred and recorded during the year ended December 31, 2015 and are included in other expenses, net in the consolidated statements of operations. We consider the majority of the acquisition costs to be of the non-operating, miscellaneous nature, as they were incurred as part of a non-operating activity, a business acquisition. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2015 | |
Geographic Information [Abstract] | |
Geographic Information | 5. GEOGRAPHIC INFORMATION The geographical distribution of long-lived assets , consisting of property, plant and equipment and net sales to geographical areas as of and for the years ended December 31 is set forth below: Long-lived Assets December 31, December 31, 2015 2014 United States $ 5,125 $ 3,307 Other – primarily Singapore and Indonesia 1,617 938 Consolidated $ 6,742 $ 4,245 Long-lived assets consist of property and equipment. Excluded from long-lived assets are investments in partnerships, patents, license agreements and goodwill. The Company capitalizes long-lived assets pertaining to the production of specialized parts. These assets are periodically reviewed to assure the net realizable value from the estimated future production based on forecasted cash flows exceeds the carrying value of the assets. Net Sales to Geographical Areas Year Ended December 31 Net Sales to Geographical Areas 2015 2014 2013 United States $ 50,899 $ 49,978 $ 36,902 Europe 6,634 6,834 5,714 Asia 10,901 9,641 7,123 All other countries 1,305 1,850 3,222 Consolidated $ 69,739 $ 68,303 $ 52,961 Geographic net sales are allocated based on the location of the customer. One customer accounted for 42 percent, 37 percent and 30 percent of the Company’s consolidated net sales in 2015, 2014 and 2013, respectively. During 2015, 2014 and 2013, the top five customers accounted for approximately $ 42,000 , $ 39,000 and $ 28,000 or 60 percent, 57 percent and 53 percent of the Company’s consolidated net sales, respectively. At December 31, 2015, two customers accounted for a combined 27 percent of the Company’s consolidated accounts receivable. Two customers accounted for a combined 28 percent of the Company’s consolidated accounts receivable at December 31, 2014. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill [Abstract] | |
Goodwill | 6. GOODWILL The Company performed its annual goodwill impairment test as of November 30 th for each of the years ended December 31, 2015, 2014 and 2013. The Company completed an analysis to assess the fair value of its reporting unit to determine whether goodwill was impaired and the extent of such impairment, if any for the years ended December 31, 2015, 2014 and 2013. Based upon this analysis, the Company has concluded that no impairment of goodwill or intangible assets occurred during the years ended December 31, 2015 and 2014. However, due to the restructuring plan that took effect in June of 2013, goodwill of $515 was determined to be impaired during the year ended December 31, 2013 and was included in the loss from discontinued operations in the consolidated statement of operations. The changes in the carrying amount of goodwill for the years presented are as follows: Carrying amount at December 31, 2012 $ 9,709 Changes to the carrying amount - Impairment of goodwill of discontinued operations (Note 2) (515) Carrying amount at December 31, 2013 9,194 Changes to the carrying amount - Carrying amount at December 31, 2014 9,194 Acquistion of assets of PC Werth (Note 4) 357 Carrying amount at December 31, 2015 $ 9,551 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventories [Abstract] | |
Inventories | 7. INVENTORIES Inventories consisted of the following: Raw materials Work-in process Finished products and components Total December 31, 2015 Domestic $ 6,514 $ 1,706 $ 2,801 $ 11,021 Foreign 2,472 636 343 3,451 Total $ 8,986 $ 2,342 $ 3,144 $ 14,472 December 31, 2014 Domestic $ 3,993 $ 1,300 $ 1,838 $ 7,131 Foreign 1,894 720 238 2,852 Total $ 5,887 $ 2,020 $ 2,076 $ 9,983 |
Short And Long-Term Debt
Short And Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Short And Long-Term Debt [Abstract] | |
Short And Long-Term Debt | 8. SHORT AND LONG-TERM DEBT Short and long-term debt at December 31, 2015 and 2014 was as follows: December 31, 2015 December 31, 2014 Domestic asset-based revolving credit facility $ 4,674 $ 3,843 Foreign overdraft and letter of credit facility 913 920 Domestic term-loan 4,250 1,750 Total debt 9,837 6,513 Less: Current maturities (1,908) (1,886) Total long-term debt $ 7,929 $ 4,627 Payments Due by Year 2016 2017 2018 2019 Thereafter Total Domestic credit facility $ - $ - $ - $ 4,674 $ - $ 4,674 Domestic term loan 1,000 1,000 1,000 1,250 - 4,250 Foreign overdraft and letter of credit facility 908 5 - - - 913 Total debt $ 1,908 $ 1,005 $ 1,000 $ 5,924 $ - $ 9,837 Domestic Credit Facilities The Company and its domestic subsidiaries are parties to a credit facility with The PrivateBank and Trust Company. The credit facility, as amended, provides for: § an $8,000 revolving credit facility, with a $200 sub facility for letters of credit. Under the revolving credit facility, the availability of funds depends on a borrowing base composed of stated percentages of the Company’s eligible trade receivables and eligible inventory, and eligible equipment less a reserve; and § a term loan in the original amount of $5,000 . In March 2015, the Company and its domestic subsidiaries entered into a Seventh Amendment to the Loan and Security Agreement with The PrivateBank and Trust Company. The amendment, among other things: § increased the Company’s term loan to $5,000 from its then current balance of $1,750 , as a result of which the Company borrowed an additional $3,250 under the term loan facility; § extended the term loan and revolving loan maturity date to February 28, 2019 , keeping the existing term loan amortization schedule in place; § increased the annual capital expenditure limit to $4,500 ; § implemented investment provisions that allow for up to $4,000 in investment spending prior to requiring bank approval; and § lowered interest rates on the term loan and revolving loan All of the borrowings under this agreement have been characterized as either a current or long-term liability on our balance sheet in accordance with the repayment terms described more fully below. Loans under the credit facility are secured by a security interest in substantially all of the assets of the Company and its domestic subsidiaries including a pledge of the stock of its domestic subsidiaries. Loans under the credit facility bear interest at varying rates based on the Company’s leverage ratio of funded debt / EBITDA, at the option of the Company, at: § the London InterBank Offered Rate (“LIBOR”) plus 2.50% - 4.00% , or § the base rate, which is the higher of (a) the rate publicly announced from time to time by the lender as its “prime rate” and (b) the Federal Funds Rate plus 0.5% , plus 0.00% - 1.25% ; in each case, depending on the Company’s leverage ratio. Interest is payable monthly in arrears, except that interest on LIBOR based loans is payable at the end of the one, two or three month interest periods applicable to LIBOR based loans. IntriCon is also required to pay a non-use fee equal to 0.25% per year of the unused portion of the revolving line of credit facility, payable quarterly in arrears. Weighted average interest on our domestic credit facilities was 3.68% , 4.51% , and 4.30% for 2015, 2014, and 2013, respectively. The outstanding balance of the revolving credit facility was $4,674 and $3,843 at December 31, 2015 and 2014, respectively. The total remaining availability on the revolving credit facility was approximately $3,326 and $3,456 at December 31, 2015 and 2014, respectively. The outstanding principal balance of the term loan, as amended, is payable in quarterly installments of $250 . Any remaining principal and accrued interest is payable on February 28, 2019. IntriCon is also required to use 100% of the net cash proceeds of certain asset sales (excluding inventory and certain other dispositions), sale of capital securities or issuance of debt to pay down the term loan. The Company was in compliance with the financial covenants under the facility as of December 31, 2015. Upon the occurrence and during the continuance of an event of default (as defined in the credit facility), the lender may, among other things: terminate its commitments to the borrowers (including terminating or suspending its obligation to make loans and advances); declare all outstanding loans, interest and fees to be immediately due and payable; take possession of and sell any pledged assets and other collateral; and exercise any and all rights and remedies available to it under the Uniform Commercial Code or other applicable law. In the event of the insolvency or bankruptcy of any borrower, all commitments of the lender will automatically terminate and all outstanding loans, interest and fees will be immediately due and payable. Events of default include, among other things, failure to pay any amounts when due; material misrepresentation; default in the performance of any covenant, condition or agreement to be performed that is not cured within 20 days after notice from the lender; default in the performance of obligations under certain subordinated debt, default in the payment of other indebtedness or other obligation with an outstanding principal balance of more than $50 , or of any other term, condition or covenant contained in the agreement under which such obligation is created, the effect of which is to allow the other party to accelerate such payment or to terminate the agreements; a breach by a borrower under certain material agreements, the result of which breach is the suspension of the counterparty’s performance thereunder, delivery of a notice of acceleration or termination of such agreement; the insolvency or bankruptcy of any borrower; the entrance of any judgment against any borrower in excess of $50, which is not fully covered by insurance; any divestiture of assets or stock of a subsidiary constituting a substantial portion of borrowers’ assets; the occurrence of a change in control (as defined in the credit facility); certain collateral impairments; a contribution failure with respect to any employee benefit plan that gives rise to a lien under ERISA; and the occurrence of any event which lender determines could be reasonably expected to have a material adverse effect (as defined in the credit facility). During 2015, the Company entered into interest rate swaps with The PrivateBank which are accounted for as effective cash flow hedges. The interest rate swaps had a combined initial notional amount of $3,750 , with a portion of the swap amortizing on a basis consistent with the $250 quarterly installments required under the term loan. Interest rate swaps, which are considered derivative instruments, of $39 and $19 are reported in the consolidated balance sheets at fair value in other current liabilities at December 31, 2015 and 2014. Foreign Credit Facility In addition to its domestic credit facilities, the Company’s wholly-owned subsidiary, IntriCon, PTE LTD., entered into an international senior secured credit agreement with Oversea-Chinese Banking Corporation Ltd. that provides for an asset based line of credit. Borrowings bear interest at a rate of .75% to 2.5% over the lender’s prevailing prime lending rate. Weighted average interest on the international credit facilities was 3.37% and 4.50% for the years ended December 31, 2015 and 2014. The outstanding balance was $913 and $920 at December 31, 2015 and 2014, respectively. The loans are collateralized by IntriCon, PTE’s restricted cash and receivables. The total remaining availability on the international senior secured credit agreement was approximately $817 and $956 at December 31, 2015 and 2014, respectively. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | 9. OTHER ACCRUED LIABILITIES Other accrued liabilities at December 31: 2015 2014 Taxes, including payroll withholdings and excluding income taxes $ 48 $ 286 Accrued professional fees 173 143 Pension 93 93 Postretirement benefit obligation 103 103 Other 862 739 $ 1,279 $ 1,364 |
Domestic And Foreign Income Tax
Domestic And Foreign Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Domestic And Foreign Income Taxes [Abstract] | |
Domestic and Foreign Income Taxes | 10. DOMESTIC AND FOREIGN INCOME TAXES Domestic and foreign income taxes (benefits) were comprised as follows: Year Ended December 31 2015 2014 2013 Current Federal $ - $ - $ - State - - 28 Foreign 27 428 189 Total Current $ 27 $ 428 $ 217 Deferred Federal - - - State - - - Foreign (8) - - Income Tax Expense $ 19 $ 428 $ 217 Income (loss) from continuing operations before income taxes and discontinued operations Foreign 1,792 2,402 (139) Domestic 344 544 (1,934) $ 2,136 $ 2,946 $ (2,073) The following is a reconciliation of the statutory federal income tax rate to the effective tax rate based on income (loss) from continuing operations: Year Ended December 31 2015 2014 2013 Tax provision at statutory rate 34.00 % 34.00 % (34.00) % Change in valuation allowance (13.80) (1.25) (5.12) Impact of permanent items, including stock based compensation expense (30.97) 16.40 24.15 Effect of foreign tax rates 11.36 (18.04) 6.35 State taxes net of federal benefit 2.78 (3.86) (1.43) Effect of dividend of foreign subsidiary in prior year 7.52 3.94 17.16 Prior year provision to return true-up (9.73) (10.27) (5.10) Non-controlling interest 1.77 - - Other (2.04) (6.40) 8.45 Domestic and foreign income tax rate 0.89 % 14.52 % 10.46 % The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2015, and 2014 are presented below: Year Ended December 31 2015 2014 Deferred tax assets: Net operating loss carry forwards and credits $ 7,931 $ 8,125 Depreciation and amortization - 284 Inventory 563 436 Compensation accruals 1,273 1,111 Accruals and reserves 113 88 Credits 236 225 Other 212 190 Total Deferred tax assets 10,328 10,459 Less: valuation allowance (9,810) (10,105) Deferred tax assets net of valuation allowance $ 518 $ 354 Deferred tax liabilities Depreciation and amortization (156) - Undistributed earnings of foreign subsidiary (319) (354) Total deferred tax liabilities (475) (354) Net deferred tax $ 43 $ - The valuation allowance is maintained against deferred tax assets which the Company has determined are more likely than not to be unrealized. The change in valuation allowance was $ (295) , $ 59 , and $ (637) for the years ended December 31, 2015, 2014 and 2013, respectively. For tax reporting purposes, the Company has actual federal and state net operating loss carryforwards of $21, 784 and $ 6,863 , respectively, as of December 31, 2015. These net operating loss carryforwards begin to expire in 2022 for federal tax purposes and 2017 for state tax purposes. Subsequently recognized tax benefits, if any, related to the valuation allowance for deferred tax assets or realization of net operating loss carryforwards will be reported in the consolidated statements of operations. If substantial changes in the Company’s ownership occur, there could be an annual limitation on the amount of the carryforwards that are available to be utilized. Excluded from the Company’s net operating loss carryforwards is $ 388 resulting from the exercise of non-qualified stock options. Because the Company is currently in an NOL position, the windfall is not recorded through additional paid-in capital until the tax benefit is recognized through a reduction in actual tax payments. During 2013, the company changed its indefinite reinvestment assertion and recognized a deferred tax liability relating to cumulative undistributed earnings of controlled foreign subsidiaries in Germany. The Company has not recognized a deferred tax liability relating to cumulative undistributed earnings of controlled foreign subsidiaries in Singapore and Indonesia that are essentially permanent in duration. If some or all of the undistributed earnings of the controlled foreign subsidiaries are remitted to the Company in the future, income taxes, if any, after the application of foreign tax credits will be accrued at that time. Determination of the amount of unrecognized tax liability related to undistributed earnings in foreign subsidiaries is not currently practical. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company regularly assesses the likelihood that the deferred tax assets will be recovered from future taxable income. The Company considers projected future taxable income and ongoing tax planning strategies, then records a valuation allowance to reduce the carrying value of the net deferred taxes to an amount that is more likely than not able to be realized. Based upon the Company’s assessment of all available evidence, including the previous three years of United States based taxable income and loss after permanent items, estimates of future profitability, and the Company’s overall prospects of future business, the Company determined that it is more likely than not that the Company will not be able to realize a portion of the deferred tax assets in the future. The Company will continue to assess the potential realization of deferred tax assets on an annual basis, or an interim basis if circumstances warrant. If the Company’s actual results and updated projections vary significantly from the projections used as a basis for this determination, the Company may need to change the valuation allowance against the gross deferred tax assets. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant taxing authority. The Company has analyzed all tax positions for which the statute of limitations remains open. As a result of the assessment, the Company has not recorded any liabilities for unrecognized income tax benefits or retained earnings. The Company does no t have any unrecognized tax benefits as of December 31, 2015 and 2014. The Company is subject to income taxes in the U.S. federal jurisdiction, and various states and foreign jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. The Company is still subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for the years 2003 to 2005 and for the years 2009 and after. There are no other on-going or pending IRS, state, or foreign examinations. The Company recognizes penalties and interest accrued related to liability on unrecognized tax benefits in income tax expense for all periods presented. As of December 31, 2015 and 2014, the Company has no amounts accrued for the payment of interest and penalties. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 11. EMPLOYEE BENEFIT PLANS The Company has defined contribution plans for most of its domestic employees. Under these plans, eligible employees may contribute amounts through payroll deductions supplemented by employer contributions for investment in various investments specified in the plans. The Company contributions to these plans were $341 for 2015, $271 for 2014 and $0 for 2013. The Company provides post-retirement medical benefits to certain former domestic employees who met minimum age and service requirements. In 1999, a plan amendment was instituted which limits the liability for post-retirement benefits beginning January 1, 2000 for certain employees who retire after that date. This plan amendment resulted in a $ 1,100 unrecognized prior service cost reduction which is recognized as employees render the services necessary to earn the post-retirement benefit. The Company’s policy is to pay the cost of these post-retirement benefits when required on a cash basis. The Company also has provided certain foreign employees with retirement related benefits. In 2015, the mortality tables were updated causing a $62k change in the estimated post-retirement medical benefit obligation. The following table presents the amounts recognized in the Company’s consolidated balance sheets at December 31, 2015 and 2014 for post-retirement medical benefits: 2015 2014 Change in Projected Benefit Obligation Projected benefit obligation at January 1 $ 588 $ 633 Interest cost 25 26 Actuarial loss 134 36 Participant contributions 25 27 Benefits paid (127) (134) Projected benefit obligation at December 31 645 588 Change in fair value of plan assets Employer contributions 102 107 Participant contributions 25 27 Benefits paid (127) (134) Funded status (645) (588) Current liabilities 103 103 Noncurrent liabilities 542 485 Net amount recognized 645 588 Amount recognized in other comprehensive income - - Unrecognized net actuarial gain - - Total $ - $ - Accrued post-retirement medical benefit costs are classified as other post-retirement benefit obligations as of December 31, 2015 and 2014. Net periodic post-retirement medical benefit costs for 2015, 2014, and 2013 included the following components: For measurement purposes, a 7.0 % annual rate of increase in the per capita cost of covered benefits (i.e., health care cost trend rate) was assumed for 2015; the rate was assumed to decrease gradually to 3.5 % by the year 2019 and remain at that level thereafter. The difference in the health care cost trend rate assumption may have a significant effect on the amounts reported. Employer contributions for 2015 are expected to be approximately $ 103 . The assumptions used for the years ended December 31 were as follows: 2015 2014 2013 Annual increase in cost of benefits 7.0 % 7.0 % 7.0 % Discount rate used to determine year-end obligations 4.5 % 4.5 % 4.0 % Discount rate used to determine year-end expense 4.5 % 4.5 % 4.5 % In addition to the post-retirement medical benefits, the Company provides retirement related benefits to certain former executive employees and to certain employees of foreign subsidiaries. The liabilities established for these benefits at December 31, 2015 and 2014 are illustrated below. 2015 2014 Current portion $ 93 $ 93 Long-term portion 805 741 Total liability at December 31 $ 898 $ 834 The Company calculated the fair values of the pension plans above utilizing a discounted cash flow, using standard life expectancy tables, annual pension payments, and a discount rate of 4.5 %. In 2015, the mortality tables were updated causing a $133k change in the estimated pension plans benefit obligation. The following employer benefit payments (medical and pension), which reflect expected future service, are expected to be paid: 2016 $ 196 2017 193 2018 177 2019 164 2020 152 Years 2021-2025 532 |
Currency Translation And Transa
Currency Translation And Transaction Adjustments | 12 Months Ended |
Dec. 31, 2015 | |
Currency Translation And Transaction Adjustments [Abstract] | |
Currency Translation And Transaction Adjustments | 12. CURRENCY TRANSLATION AND TRANSACTION ADJUSTMENTS All assets and liabilities of foreign operations in which the functional currency is not the U.S. dollar are translated into U.S. dollars at prevailing rates of exchange in effect at the balance sheet date. Revenues and expenses are translated using average rates of exchange for the year. Adjustments resulting from the process of translating the financial statements of foreign subsidiaries into U.S. dollars are reported as a separate component of equity, net of tax, where appropriate. Foreign currency transaction amounts included in the consolidated statements of operations include a loss of $40 , $51 , and $42 in 2015, 2014 and 2013, respectively. |
Common Stock And Stock Options
Common Stock And Stock Options | 12 Months Ended |
Dec. 31, 2015 | |
Common Stock And Stock Options [Abstract] | |
Common Stock And Stock Options | 13. COMMON STOCK AND STOCK OPTIONS The Company has a 2006 Equity Incentive Plan and a 2015 Equity Incentive Plan. The 2015 Equity Incentive Plan, which was approved by the shareholders on April 24, 2015, replaced the 2006 Equity Incentive Plan. New grants may not be made under the 2006 plan; however certain option grants under these plans remain exercisable as of December 31, 2015. The aggregate number of shares of common stock for which awards could be granted under the 2015 Equity Incentive Plan as of the date of adoption was 500 shares. Additionally, as outstanding options under the 2006 plan expire, the shares of the Company’s common stock subject to the expired options will become available for issuance under the 2015 Equity Incentive Plan. Under the various plans, executives, employees and outside directors receive awards of options to purchase common stock. Under the 2015 equity incentive plan, the Company may also grant stock awards, stock appreciation rights, restricted stock units and other equity-based awards, although no such awards, other than awards under the director program and management purchase program described below, had been granted as of December 31, 2015. Under all awards, the terms are fixed on the grant date. Generally, the exercise price of stock options equals the market price of the Company’s stock on the date of the grant. Options under the plans generally vest over three years, and have a maximum term of 10 years. Additionally, the board has established the non-employee directors’ stock fee election program, referred to as the director program, as an award under the 2015 equity incentive plan. The director program gives each non-employee director the right under the 2015 equity incentive plan to elect to have some or all of his quarterly director fees paid in common shares rather than cash. There were no shares issued in lieu of cash for director fees under the director program for each of the years ended December 31, 2015, 2014 and 2013, respectively. On July 23, 2008, the Compensation Committee of the Board of Directors approved the non-employee director and executive officer stock purchase program, referred to as the management purchase program, as an award under the 2015 Plan. The purpose of the management purchase program is to permit the Company’s non-employee directors and executive officers to purchase shares of the Company’s Common Stock directly from the Company. Pursuant to the management purchase program, as amended, participants may elect to purchase shares of Common Stock from the Company not exceeding an aggregate of $ 100 during any fiscal year. Participants may make such election one time during each twenty business day period following the public release of the Company’s earnings announcement, referred to as a window period, and only if such participant is not in possession of material, non-public information concerning the Company and subject to the discretion of the Board to prohibit any transactions in Common Stock by directors and executive officers during a window period. There was 1 share purchased under the management purchase program during the year ended December 31, 2014 and no shares purchased under the program during the years ended December 31, 2015 and 2013. Stock option activity during the periods indicated is as follows: Weighted-average Aggregate Number of Shares Exercise Price Intrinsic Value Outstanding at December 31, 2012 1,244 $ 5.97 Options forfeited or cancelled (15) 5.21 Options granted 192 4.06 Options exercised (14) 2.86 Outstanding at December 31, 2013 1,407 5.75 Options forfeited or cancelled (63) 7.87 Options granted 174 4.99 Options exercised (205) 3.74 Outstanding at December 31, 2014 1,313 5.86 Options granted 170 7.14 Options exercised (159) 3.12 Outstanding at December 31, 2015 1,324 $ 6.36 $ 2,640 Exercisable at December 31, 2014 984 $ 6.17 $ 1,830 Exercisable at December 31, 2015 989 $ 6.50 $ 2,076 Available for future grant at December 31, 2015 490 The number of shares available for future grant at December 31, 2015, does not include a total of up to 1,282 shares subject to op tions outstanding under the 2006 pl an which will become available for grant under the 2015 Equity Incentive P lan in the event of the expiration of such options. The weighted-average remaining contractual term of options exercisable and outstanding at December 31, 2015, were 4.14 and 5.24 years, respectively. The total intrinsic value of options exercised during fiscal 2015, 2014, and 2013, was $630 , $635 , and $12 , respectively. The weighted-average per share grant date fair value of options granted was $4.50 , $3.28 , and $ 4.06 , in 2015, 2014, and 2013, respectively, using the Black-Scholes option-pricing model. For disclosure purposes, the fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2015 2014 2013 Dividend yield 0.0 % 0.0 % 0.0 % Expected volatility 65.15 - 72.81 % 75.03 - 75.59 % 70.84 - 72.19 % Risk-free interest rate 1.42 - 1.88 % 2.00 - 2.07 % .91 - 1.07 % Expected life (years) 6.0 6.0 6.0 The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. In addition, option-pricing models require the input of subjective assumptions, including the expected stock price volatility. Because the Company’s options have characteristics different from those of traded options, in the opinion of management, the existing models do not necessarily provide a reliable single measure of the fair value of its options. The Company calculates expected volatility for stock options and awards using the Company’s historical volatility. The expected term for stock options and awards is calculated based on the Company’s estimate of future exercise at the time of grant. The Company currently estimates a five percent forfeiture rate for stock options and regularly reviews this estimate. The risk-free rates for the expected terms of the stock options and awards and the employee stock purchase plan is based on the U.S. Treasury yield curve in effect at the time of grant. The Company recorded $ 578 , $ 457 , and $ 532 of non-cash stock option expense for the years ended December 31, 2015, 2014 and 2013, respectively. There were 64 stock options that were exercised using a cashless method of exercise for the year ended December 31, 2015. As of December 31, 2015, there was $ 718 of total non-cash stock option expense related to non-vested awards that is expected to be recognized over a weighted-average period of 1.87 years. The Company also has an Employee Stock Purchase Plan (the “Purchase Plan”). The Purchase Plan, as amended, provides that a maximum of 200 shares may be sold under the Purchase Plan. There were 1 4 , 1 6 , and 2 6 shares purchased under the plan during the years ended December 31, 2015, 2014 and 2013 , respectively . The Company issues new shares of stock upon the exercise of stock options. |
Income (Loss) Per Share
Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Income (Loss) Per Share [Abstract] | |
Income (Loss) Per Share | 14. INCOME (LOSS) PER SHARE The following table sets forth the computation of basic and diluted income (loss) per share: Year Ended December 31 2015 2014 2013 Numerator: Income (loss) before discontinued operations $ 2,117 $ 2,518 $ (2,290) Loss from discontinued operations, net of income taxes - (270) (3,872) Net income (loss) 2,117 2,248 (6,162) Less: Loss allocated to non-controlling interest (111) - - Net income (loss) attributable to IntriCon shareholders $ 2,228 $ 2,248 $ (6,162) Denominator: Basic – weighted shares outstanding 5,907 5,791 5,699 Weighted shares assumed upon exercise of stock options 334 247 - Diluted – weighted shares outstanding 6,241 6,038 5,699 Basic income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.38 $ 0.43 $ (0.40) Discontinued operations - (0.05) (0.68) Net income (loss) per share: $ 0.38 $ 0.39 $ (1.08) Diluted income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.36 $ 0.42 $ (0.40) Discontinued operations - (0.04) (0.68) Net income (loss) per share: $ 0.36 $ 0.37 $ (1.08) The Company excluded stock options of 71 , 21 , and 1,407 , in 2015, 2014, and 2013, respectively, from the computation of the diluted income per share as their effect would be anti-dilutive. For additional disclosures regarding the stock options, see Note 13. |
Contigencies And Commitments
Contigencies And Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Contingencies And Commitments [Abstract] | |
Contigencies And Commitments | 15. CONTINGENCIES AND COMMITMENTS The Company is a defendant along with a number of other parties in lawsuits alleging that plaintiffs have or may have contracted asbestos-related diseases as a result of exposure to asbestos products or equipment containing asbestos sold by one or more named defendants. These lawsuits relate to the discontinued heat technologies segment which was sold in March 2005. Due to the non-informative nature of the complaints, the Company does not know whether any of the complaints state valid claims against the Company. Certain insurance carriers have informed the Company that the primary policies for the period August 1, 1970-1978 have been exhausted and that the carriers will no longer provide defense and insurance coverage under those policies. However, the Company has other primary and excess insurance policies that the Company believes afford coverage for later years. Some of these other primary insurers have accepted defense and insurance coverage for these suits, and some of them have either ignored the Company’s tender of defense of these cases, or have denied coverage, or have accepted the tenders but asserted a reservation of rights and/or advised the Company that they need to investigate further. Because settlement payments are applied to all years a litigant was deemed to have been exposed to asbestos, the Company believes that it will have funds available for defense and insurance coverage under the non-exhausted primary and excess insurance policies. However, unlike the older policies, the more recent policies have deductible amounts for defense and settlements costs that the Company will be required to pay; accordingly, the Company expects that its litigation costs will increase in the future. Further, many of the policies covering later years (approximately 1984 and thereafter) have exclusions for any asbestos products or operations, and thus do not provide insurance coverage for asbestos-related lawsuits. The Company does not believe that the asserted exhaustion of some of the primary insurance coverage for the 1970-1978 period will have a material adverse effect on its financial condition, liquidity, or results of operations. Management believes that the number of insurance carriers involved in the defense of the suits, and the significant number of policy years and policy limits under which these insurance carriers are insuring the Company, make the ultimate disposition of these lawsuits not material to the Company's consolidated financial position or results of operations. The Company’s former wholly owned French subsidiary, Selas SAS, filed for insolvency in France. The Company may be subject to additional litigation or liabilities as a result of the completion of the French insolvency proceeding, including liabilities under guarantees a ggregating approximately $421 . The Company is also involved in other lawsuits arising in the normal course of business. While it is not possible to predict with certainty the outcome of these matters, management is of the opinion that the disposition of these lawsuits and claims will not materially affect our consolidated financial position, liquidity or results of operations. Total expense for 2015, 2014 and 2013 under leases pertaining primarily to engineering, manufacturing, sales and administrative facilities, with an initial term of one year or more, aggregated $ 1,300 , $ 1,071 , and $ 1,304 , respectively. Remaining payments under such leases are as follows: 2016- $ 1,132 ; 2017- $517 ; 2018 - $407 , which includes two leased facility in Minnesota that expire in 2016 and one that expires in 2017, one leased facility in California that expires in 2016, one leased facility in Singapore that expires in 2020, one leased facility in Indonesia that expires in 2016, one leased facility in the United Kingdom that expires in 2016, and one leased facility in Germany that expires in 2017. Certain leases contain renewal options as defined in the lease agreements. On October 5, 2007, the Company entered into employment agreements with its executive officers. The agreements call for payments ranging from ten months to two years base salary and unpaid bonus, if any, to the executives should there be a change of control as defined in the agreement and the executives are not retained for a period of at least one year following such change of control. Under the agreements, all stock options granted to the executives would vest immediately and be exercisable in accordance with the terms of such stock options. The Company also agreed that if it enters into an agreement to sell substantially all of its assets, it will obligate the buyer to fulfill its obligations pursuant to the agreements. The agreements terminate, except to the extent that any obligation remains unpaid, upon the earlier of termination of the executive’s employment prior to a change of control or asset sale for any reason or the termination of the executive after a change of control for any reason other than by involuntary termination as defined in the agreements. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related-Party Transactions [Abstract] | |
Related-Party Transactions | 16. RELATED-PARTY TRANSACTIONS One of the Company’s subsidiaries leases office and factory space from a partnership consisting of three present or former officers of the subsidiary, including Mark Gorder, a member of the Company’s Board of Directors and the President and Chief Executive Officer of the Company. The subsidiary is required to pay all real estate taxes and operating expenses. The total base rent expense, real estate taxes and other charges incurred under the lease was approximately $ 487 , $ 486 and $ 486 for the years ended December 31, 2015, 2014 and 2013, respectively. The Company uses the law firm of Blank Rome LLP for legal services. A partner of that firm is the son-in-law of the Chairman of our Board of Directors. The Company paid approximately $203 , $156 , and $228 to Blank Rome LLP for legal services and costs in 2015, 2014 and 2013, respectively. The Chairman of our Board of Directors is considered independent under applicable NASDAQ and SEC rules because (i) no payments were made to the Chairman or the partner directly in exchange for the services provided by the law firm and (ii) the amounts paid to the law firm did not exceed the thresholds contained in the NASDAQ standards. Furthermore, the aforementioned partner does not provide any legal services to the Company and is not involved in billing matters. |
Statements Of Cash Flows
Statements Of Cash Flows | 12 Months Ended |
Dec. 31, 2015 | |
Statements Of Cash Flows [Abstract] | |
Statements Of Cash Flows | 17. STATEMENTS OF CASH FLOWS Supplemental disclosures of cash flow information: Year Ended December 31 2015 2014 2013 Interest received $ 1 $ 1 $ 1 Interest paid 437 432 512 Income taxes paid 263 132 27 Shares issued for director services in lieu of fees - 1 - |
Revenue By Market
Revenue By Market | 12 Months Ended |
Dec. 31, 2015 | |
Revenue By Market [Abstract] | |
Revenue By Market | 18. REVENUE BY MARKET The following table set s forth, for the periods indicated, net revenue by market: Year Ended December 31 2015 2014 2013 Medical $ 40,821 $ 35,109 $ 25,978 Hearing Health 21,089 22,959 19,739 Professional Audio Communications 7,829 10,235 7,244 Total Net Sales $ 69,739 $ 68,303 $ 52,961 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. SUBSEQUENT EVENTS The Company has reviewed events subsequent to the date these consolidated financial statements were issued and noted no matters requiring adjustment to or disclosure in these consolidated financial statements. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Summary Of Significany Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation – On June 13, 2013, the Company announced a global restructuring plan to accelerate future growth and reduce costs. As part of the restructuring, the Company disposed of the assets relating to its security and certain microphone and receiver operations . For all periods presented, the Company classified these businesses as discontinued operations, and, accordingly, has reclassified historical financial data presented herein. See further information in Notes 2 and 3. |
Consolidation | Consolidation – The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. |
Principles Of Consolidation | Principles of Consolidation – The Company evaluates its voting and variable interests in entities on a qualitative and quantitative basis. The Company consolidates entities in which it concludes it has the power to direct the activities that most significantly impact an entity’s economic success and has the obligation to absorb losses or the right to receive benefits that could be significant to the entity. |
Non-Controlling Interests | Non-Controlling Interests – The Company owns 50% of the earVenture joint venture . The remaining ownership is accounted for as a non-controlling interest and reported as part of equity in the consolidated financial statements. The Company allocates gains and losses to the non-controlling interest even when such allocation might result in a deficit balance, reducing the losses attribu ted to the controlling interest. C hanges in ownership interests are treated as equity transactions if the Company maintains control. |
Segment Disclosures | Segment Disclosures – A business segment is a distinguishable component of an enterprise that is engaged in providing an individual product or service or a group of related products or services and that is subject to risks and returns that are different from those of other business segments. The Company’s segments have similar economic characteristics and are similar in the nature of the products sold, type of customers, methods used to distribute the Company’s products and regulatory environment. Management believes that the Company meets the criteria for aggregating the components of its only operating segment of continuing operations into a single reporting segment. |
Use of Estimates | Use of Estimates – The Company makes estimates and assumptions relating to the reporting of assets and liabilities, the recording of reported amounts of revenues and expenses and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements. Actual results could differ from those estimates. Considerable management judgment is necessary in estimating future cash flows and other factors affecting the valuation of goodwill, intangible assets, and employee benefit obligations including the operating and macroeconomic factors that may affect them. The Company uses historical financial information, internal plans and projections and industry information in making such estimates. |
Revenue Recognition | Revenue Recognition – The Company recognizes revenue when the customer takes ownership, primarily upon product shipment, and assumes risk of loss, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists and the sales price is fixed or determinable. Customers have 30 days to notify the Company if the product is damaged or defective. Beyond that, there are no significant obligations that remain after shipment other than warranty obligations. Contracts with customers do not include product return rights, however, the Company may elect in certain circumstances to accept returns of products. The Company records revenue for product sales net of returns. Sales and use tax are reported on a net basis. The Company defers recognition of revenue on discounts to customers if discounts are considered significant. In general, the Company warrants its products to be free from defects in material and workmanship and will fully conform to and perform to specifications for a period of one year. The Company develops a warranty reserve based on historical experience. |
Shipping And Handling Costs | Shipping and Handling Costs –The Company includes shipping and handling revenues in sales and shipping and handling costs in cost of sales. |
Fair Value Of Financial Instruments | Fair Value of Financial Instruments – The carrying value of cash, accounts receivable, notes payable, and trade accounts payables, approximate fair value because of the short maturity of those instruments. The fair values of the Company’s long-term debt obligations, pension an d post-retirement obligations approximate their carrying values based upon current market rates of interest. |
Concentration Of Cash | Concentration of Cash – The Company deposits its cash in what management believes are high credit quality financial institutions. The balance, at times, may exceed federally insured limits. |
Restricted Cash | Restricted Cash – Restricted cash consists of deposits required to secure a credit facility at our Singapore location and deposits required to fund retirement related benefits for certain employees. |
Accounts Receivable | Accounts Receivable – The Company reviews customers’ credit history before extending unsecured credit and establishes an allowance for uncollectible accounts based upon factors surrounding the credit risk of specific customers and other information. Invoices are generally due 30 days after presentation. Accounts receivable over 30 days are considered past due. The Company does not accrue interest on past due accounts receivables. Receivables are written off once all collection attempts have failed and are based on individual credit evaluation and specific circumstances of the customer. The allowance for doubtful accounts balance was $135 and $120 as of December 31, 2015 and 2014, respectively. |
Inventories | Inventories – Inventories are stated at the lower of cost or market. The cost of the inventories was determined by the first-in, first-out method. |
Property, Plant And Equipment | Property, Plant and Equipment – Property, plant and equipment are carried at cost. Depreciation is computed on a straight-line basis using estimated useful lives of 5 to 40 years for buildings and improvements and 3 to 12 years for machinery and equipment. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. Improvements are capitalized and expenditures for maintenance, repairs and minor renewals are charged to expense when incurred. At the time assets are retired or sold, the costs and accumulated depreciation are eliminated and the resulting gain or loss, if any, is reflected in the consolidated statement of operations. Depreciation expense was $ 1,524 , $ 1,955 , and $ 2,214 for the years ended December 31, 2015, 2014, and 2013, respectively. |
Impairment Of Long-lived Assets And Long-lived Assets To Be Disposed Of | Impairment of Long-lived Assets and Long-lived Assets to be Disposed of – The Company reviews its long-lived assets, certain identifiable intangibles, and goodwill for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to future net undiscounted cash flows expected to be generated by the asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. As of December 31, 2015, the Company has determined that no impairment of long-lived assets from continuing operations exists. Goodwill is reviewed for impairment annually or more frequently if changes in circumstances or the occurrence of events suggest impairment exists. The Company utilizes the two-step impairment analysis and elected not to use the qualitative assessment or “step zero” approach. In the two-step impairment analysis, in step one, the fair value of each reporting unit is compared to its carrying value, including goodwill. If the fair value exceeds the carrying value, no impairment loss is recognized. If the carrying value exceeds the fair value, the goodwill of the reporting unit is potentially impaired and the Company completes step two in order to measure the impairment loss. In step two, the Company calculates the implied fair value of goodwill by deducting the fair value of all tangible and intangible net assets (including unrecognized intangible assets) of the reporting unit from the fair value of the reporting unit. If the implied fair value of goodwill is less than the carrying value of goodwill, the Company recognizes an impairment loss, in the period identified, equal to the difference. The Company has concluded that no impairment of goodwill or intangible assets occurred during the year ended December 31, 2015. Refer to Note 2 for loss on impairment of long lived assets during 2013. |
Other Assets, Net | Other assets, net – The principal amounts included in other assets, net are technology fees and debt issuance costs. The debt issuance costs are being amortized over the related term utilizing the effective interest method and are included in interest expense, and the other assets are being amortized over their estimated useful life on a straight-line basis. Debt issuance cost included in interest expense was $72 , $ 56 and $ 35 for the years ended December 31, 2015, 2014, and 2013 , respectively. Amortization expense was $ 231 , $ 227 and $ 204 for the years ended December 31, 2015, 2014, and 2013 , respectively. |
Investments In Partnerships | Investments in Partnerships – Certain of the Company’s investments in equity securities are long-term, strategic investments in companies. The Company accounts for these investments under the equity method of accounting. Under the equity method the Company records the investment at the amount the Company paid and adjusts for the Company’s share of the investee’s income or loss and dividends paid. The investments are reviewed quarterly for changes in circumstances or the occurrence of events that suggest the Company’s investment may not be recoverable. To date there have been no impairment losses recognized. |
Income Taxes | Income Taxes – Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, operating losses and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are established to the extent the future benefit from the deferred tax assets realization is more likely than not unable to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The deferred tax asset valuation allowance was $9,810 and $10,105 as of December 31, 2015 and 2014, respectively. The Company recognizes accrued interest and penalties related to uncertain tax positions in income tax expense. At December 31, 2015, the Company had no accrual for the payment of tax related interest and there was no tax interest or penalties recognized in the consolidated statements of operations. The Company’s federal and state tax returns are potentially open to examinations for fiscal years 2003-2005 and 2009-2015. |
Employee Benefit Obligation | Employee Benefit Obligations – The Company provides pension and health care insurance for certain domestic retirees and employees of its operations discontinued in 2005. These obligations have been included in continuing operations as the Company retained these obligations. The Company also provides retirement related benefits for certain foreign employees. The Company measures the costs of its obligation based on actuarial determinations. The net periodic costs are recognized as employees render the services necessary to earn the post-retirement benefit and the obligation is recorded on the consolidated balance sheet as accrued pension liabilities. Assumptions about the discount rate, the expected rate of return on plan assets and the future rate of compensation increases are determined by the Company. The Company believes the assumptions are within accepted guidelines and ranges. However, these actuarial assumptions could vary materially from actual results due to economic events and different rates of retirement, mortality and withdrawal. |
Stock Option And Equity Plans | Stock Option and Equity Plans – Under the various Company stock-based compensation plans, executives, employees and outside directors receive awards of options to purchase common stock. Under all awards, the terms are fixed at the grant date. Generally, the exercise price equals the market price of the Company’s stock on the date of the grant. Options under the plans generally vest over three years, and have a maximum term of 10 years. One of the plans also permits the granting of stock awards, stock appreciation rights, restricted stock units and other equity based awards. The Company expenses grant-date fair values of stock options and awards ratably over the vesting period of the related share-based award. See Note 13 for additional information. |
Product Warranty | Product Warranty – The Company offers a warranty on various products and services. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount of the reserve recorded is equal to the costs to repair or otherwise satisfy the claim. |
Patent Costs | Patent Costs – Costs associated with the submission of a patent application are expensed as incurred given the uncertainty of the patents providing future economic benefit to the Company. |
Advertising Costs | Advertising Costs – Advertising costs are charged to expense as incurred. |
Research And Development Costs | Research and Development Costs – Research and development costs, net of customer funding, amounted to $ 5,214 , $ 4,832 , and $ 4,181 in 2015, 2014 and 2013, respectively, and are charged to expense when incurred, net of customer funding. The Company accrues proceeds received under governmental grants when earned and estimable as a reduction to research and development expense. During the year ended December 31, 2013, the Company accrued $ 567 in research and development tax credit refunds received with the state of Minnesota as a reduction to research and development expense. |
Customer Funded Tooling Costs | Customer Funded Tooling Costs – The Company designs and develops molds and tools for reimbursement on behalf of several customers. Costs associated with the design and development of the molds and tools are charged to expense, net of the customer reimbursement amount. Net customer funded tooling resulted in income of $ 121 , $ 140 and $ 352 for the years ended December 31, 2015, 2014 and 2013, respectively, and is included in cost of goods sold in the consolidated statements of operations. |
Income (Loss) Per Share | Income (loss) Per Share – Basic income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year. Diluted income (loss) per common share reflects the potential dilution of securities that could share in the earnings. The Company uses the treasury stock method for calculating the dilutive effect of stock options. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) – Comprehensive income (loss) consists of net income (loss), change in fair value of derivative instruments, pension and post-retirement obligations and foreign currency translation adjustments and is presented in the consolidated statements of comprehensive income (loss). |
Foreign Currency Translation | Foreign Currency Translation - The Company’s German subsidiary accounts for its transactions in its functional currency, the Euro. The Company’s United Kingdom subsidiary accounts for its transactions in its functional currency, the British pound. Foreign assets and liabilities are translated into United States dollars using the year-end exchange rates. Equity is translated at average historical exchange rates. Results of operations are translated using the average exchange rates throughout the year. Translation gains or losses are accumulated as a separate component of equity. |
Derivative Financial Instruments | Derivative Financial Instruments — When deemed appropriate, the Company enters into derivative instruments. The Company does not use derivative financial instruments for speculative or trading purposes. All derivative transactions are linked to an existing balance sheet item or firm commitment, and the notional amount does not exceed the value of the exposure being hedged. We recognize all derivative financial instruments in the consolidated financial statements at fair value regardless of the purpose or intent for holding the instrument. Generally, changes in fair values of derivatives accounted for as cash flow hedges, to the extent they are effective as hedges, are recorded in other comprehensive income (loss), net of tax or, if ineffective, on the consolidated statements of operations. |
New Accounting Pronouncements | New Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) 2015-17, Income Taxes (Topic 740) Related to the Balance Sheet Classification of Deferred Taxes which will require entities to present deferred tax assets (DTAs) and deferred tax liabilities (DTLs) as noncurrent in a classified balance sheet. The ASU simplifies the current guidance (ASC 740-10-45-4), which requires entities to separately present DTAs and DTLs as current and noncurrent in a classified balance sheet. The ASU is effective for annual reporting periods beginning on or after December 15, 2016, and interim periods within those annual periods. The Company does not expect the provision of ASU 2015-17 to have a material impact on its consolidated financial statements. In July 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-11, Inventory (Topic 330) Related to Simplifying the Measurement of Inventory which applies to all inventory except inventory that is measured using last-in, first-out (“LIFO”) or the retail inventory method. Inventory measured using first-in, first-out (“FIFO”) or average cost is covered by the new amendments. Inventory within the scope of the new guidance should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments will take effect for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The new guidance should be applied prospectively, and earlier application is permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact of the standard on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. The Company does not expect the provision of ASU 2015-03 to have a material impact on its consolidated financial statements. In 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. The amendments in ASU 2015-05 provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments do not change the accounting for a customer's accounting for service contracts. As a result of the amendments, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. The Company is evaluating the impact of the standard on the consolidated financial statements. In May 2014, the FASB issued new accounting guidance related to revenue recognition. This new standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance will be effective for the Company beginning January 1, 2018 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. We are currently assessing the impact on the Company’s consolidated financial statements. In 2014, the FASb issued Accounting Standards Update ("ASU") No. 2014-15, 'Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, intended to define management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for the Company in the year ended December 31, 2016, and interim periods beginning March 31, 2017, with early application permitted. We do not anticipate a material impact to the consolidated financial statements once implemented. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations [Abstract] | |
Schedule Of Loss On Sale Of Discontinued Operations | Accounts receivable, net $ 384 Inventory, net 128 Property, plant and equipment, net 127 Other assets 1 Accounts payable (69) Net assets sold $ 571 Cash proceeds received from Sierra Peaks 500 Net assets sold (571) Transaction costs (49) Loss on sale of discontinued operations, net of income taxes $ (120) |
Summary Of Results Of Discontinued Operations | Year Ended December 31, December 31, December 31, 2015 2014 2013 Sales, net $ - $ 207 $ 2,480 Operating costs and expenses - (357) (4,693) Loss on impairment - - (1,700) Operating loss - (150) (3,913) Other income, net - - 41 Net loss from discontinued operations $ - $ (150) $ (3,872) |
Schedule Of Disposal Groups Including Discontinued Operations Nonrecurring Fair Value Measurement | Fair value as of measurement date Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Impairment Charge Long-lived assets of discontinued operations $ 131 $ - $ - $ 131 $ 604 Goodwill of discontinued operations - - - - 515 Accounts Receivable 350 - - 350 73 Inventory 26 - - 26 468 Other Assets 3 - - 3 40 |
Acquisition Of PC Werth (Tables
Acquisition Of PC Werth (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Acquisition Of PC Werth [Abstract] | |
Schedule Of Business Acquisition Purchase Price | Inventory $ 155 Property, Plant and Equipment 39 Intellectual Property 39 Goodwill 357 Payables (393) $ 197 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Geographic Information [Abstract] | |
Geographical Distribution Of Long-Lived Assets | December 31, December 31, 2015 2014 United States $ 5,125 $ 3,307 Other – primarily Singapore and Indonesia 1,617 938 Consolidated $ 6,742 $ 4,245 |
Geographical Distribution Of Net Sales | Year Ended December 31 Net Sales to Geographical Areas 2015 2014 2013 United States $ 50,899 $ 49,978 $ 36,902 Europe 6,634 6,834 5,714 Asia 10,901 9,641 7,123 All other countries 1,305 1,850 3,222 Consolidated $ 69,739 $ 68,303 $ 52,961 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill [Abstract] | |
Schedule Of Goodwill | Carrying amount at December 31, 2012 $ 9,709 Changes to the carrying amount - Impairment of goodwill of discontinued operations (Note 2) (515) Carrying amount at December 31, 2013 9,194 Changes to the carrying amount - Carrying amount at December 31, 2014 9,194 Acquistion of assets of PC Werth (Note 4) 357 Carrying amount at December 31, 2015 $ 9,551 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventories [Abstract] | |
Schedule Of Inventories | Raw materials Work-in process Finished products and components Total December 31, 2015 Domestic $ 6,514 $ 1,706 $ 2,801 $ 11,021 Foreign 2,472 636 343 3,451 Total $ 8,986 $ 2,342 $ 3,144 $ 14,472 December 31, 2014 Domestic $ 3,993 $ 1,300 $ 1,838 $ 7,131 Foreign 1,894 720 238 2,852 Total $ 5,887 $ 2,020 $ 2,076 $ 9,983 |
Short And Long-Term Debt (Table
Short And Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Short And Long-Term Debt [Abstract] | |
Summary Of Short And Long-Term Debt | December 31, 2015 December 31, 2014 Domestic asset-based revolving credit facility $ 4,674 $ 3,843 Foreign overdraft and letter of credit facility 913 920 Domestic term-loan 4,250 1,750 Total debt 9,837 6,513 Less: Current maturities (1,908) (1,886) Total long-term debt $ 7,929 $ 4,627 |
Schedule of Maturities of Long-term Debt | Payments Due by Year 2016 2017 2018 2019 Thereafter Total Domestic credit facility $ - $ - $ - $ 4,674 $ - $ 4,674 Domestic term loan 1,000 1,000 1,000 1,250 - 4,250 Foreign overdraft and letter of credit facility 908 5 - - - 913 Total debt $ 1,908 $ 1,005 $ 1,000 $ 5,924 $ - $ 9,837 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Accrued Liabilities [Abstract] | |
Components Of Other Accrued Liabilites | 2015 2014 Taxes, including payroll withholdings and excluding income taxes $ 48 $ 286 Accrued professional fees 173 143 Pension 93 93 Postretirement benefit obligation 103 103 Other 862 739 $ 1,279 $ 1,364 |
Domestic and Foreign Income T36
Domestic and Foreign Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Domestic And Foreign Income Taxes [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit)] | Year Ended December 31 2015 2014 2013 Current Federal $ - $ - $ - State - - 28 Foreign 27 428 189 Total Current $ 27 $ 428 $ 217 Deferred Federal - - - State - - - Foreign (8) - - Income Tax Expense $ 19 $ 428 $ 217 Income (loss) from continuing operations before income taxes and discontinued operations Foreign 1,792 2,402 (139) Domestic 344 544 (1,934) $ 2,136 $ 2,946 $ (2,073) |
Schedule of Effective Income Tax Rate Reconciliation | Year Ended December 31 2015 2014 2013 Tax provision at statutory rate 34.00 % 34.00 % (34.00) % Change in valuation allowance (13.80) (1.25) (5.12) Impact of permanent items, including stock based compensation expense (30.97) 16.40 24.15 Effect of foreign tax rates 11.36 (18.04) 6.35 State taxes net of federal benefit 2.78 (3.86) (1.43) Effect of dividend of foreign subsidiary in prior year 7.52 3.94 17.16 Prior year provision to return true-up (9.73) (10.27) (5.10) Non-controlling interest 1.77 - - Other (2.04) (6.40) 8.45 Domestic and foreign income tax rate 0.89 % 14.52 % 10.46 % |
Schedule of Deferred Tax Assets and Liabilities | Year Ended December 31 2015 2014 Deferred tax assets: Net operating loss carry forwards and credits $ 7,931 $ 8,125 Depreciation and amortization - 284 Inventory 563 436 Compensation accruals 1,273 1,111 Accruals and reserves 113 88 Credits 236 225 Other 212 190 Total Deferred tax assets 10,328 10,459 Less: valuation allowance (9,810) (10,105) Deferred tax assets net of valuation allowance $ 518 $ 354 Deferred tax liabilities Depreciation and amortization (156) - Undistributed earnings of foreign subsidiary (319) (354) Total deferred tax liabilities (475) (354) Net deferred tax $ 43 $ - |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Plans [Abstract] | |
Schedule Of Amounts Recognized In Consolidated Balance Sheets | 2015 2014 Change in Projected Benefit Obligation Projected benefit obligation at January 1 $ 588 $ 633 Interest cost 25 26 Actuarial loss 134 36 Participant contributions 25 27 Benefits paid (127) (134) Projected benefit obligation at December 31 645 588 Change in fair value of plan assets Employer contributions 102 107 Participant contributions 25 27 Benefits paid (127) (134) Funded status (645) (588) Current liabilities 103 103 Noncurrent liabilities 542 485 Net amount recognized 645 588 Amount recognized in other comprehensive income - - Unrecognized net actuarial gain - - Total $ - $ - |
Schedule Of Assumptions Used | 2015 2014 2013 Annual increase in cost of benefits 7.0 % 7.0 % 7.0 % Discount rate used to determine year-end obligations 4.5 % 4.5 % 4.0 % Discount rate used to determine year-end expense 4.5 % 4.5 % 4.5 % |
Schedule Of Expected Benefit Payments | 2016 $ 196 2017 193 2018 177 2019 164 2020 152 Years 2021-2025 532 |
Schedule Of Liabilities Recorded | 2015 2014 Current portion $ 93 $ 93 Long-term portion 805 741 Total liability at December 31 $ 898 $ 834 |
Common Stock And Stock Options
Common Stock And Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Common Stock And Stock Options [Abstract] | |
Schedule Of Stock Option Activity | Weighted-average Aggregate Number of Shares Exercise Price Intrinsic Value Outstanding at December 31, 2012 1,244 $ 5.97 Options forfeited or cancelled (15) 5.21 Options granted 192 4.06 Options exercised (14) 2.86 Outstanding at December 31, 2013 1,407 5.75 Options forfeited or cancelled (63) 7.87 Options granted 174 4.99 Options exercised (205) 3.74 Outstanding at December 31, 2014 1,313 5.86 Options granted 170 7.14 Options exercised (159) 3.12 Outstanding at December 31, 2015 1,324 $ 6.36 $ 2,640 Exercisable at December 31, 2014 984 $ 6.17 $ 1,830 Exercisable at December 31, 2015 989 $ 6.50 $ 2,076 Available for future grant at December 31, 2015 490 |
Schedule Of Weighted Average Assumptions | 2015 2014 2013 Dividend yield 0.0 % 0.0 % 0.0 % Expected volatility 65.15 - 72.81 % 75.03 - 75.59 % 70.84 - 72.19 % Risk-free interest rate 1.42 - 1.88 % 2.00 - 2.07 % .91 - 1.07 % Expected life (years) 6.0 6.0 6.0 |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income (Loss) Per Share [Abstract] | |
Reconciliation Between Basic And Diluted Earnings Per Share | Year Ended December 31 2015 2014 2013 Numerator: Income (loss) before discontinued operations $ 2,117 $ 2,518 $ (2,290) Loss from discontinued operations, net of income taxes - (270) (3,872) Net income (loss) 2,117 2,248 (6,162) Less: Loss allocated to non-controlling interest (111) - - Net income (loss) attributable to IntriCon shareholders $ 2,228 $ 2,248 $ (6,162) Denominator: Basic – weighted shares outstanding 5,907 5,791 5,699 Weighted shares assumed upon exercise of stock options 334 247 - Diluted – weighted shares outstanding 6,241 6,038 5,699 Basic income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.38 $ 0.43 $ (0.40) Discontinued operations - (0.05) (0.68) Net income (loss) per share: $ 0.38 $ 0.39 $ (1.08) Diluted income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.36 $ 0.42 $ (0.40) Discontinued operations - (0.04) (0.68) Net income (loss) per share: $ 0.36 $ 0.37 $ (1.08) |
Statements Of Cash Flows (Table
Statements Of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Statements Of Cash Flows [Abstract] | |
Supplemental Disclosures Of Cash Flow Information | Year Ended December 31 2015 2014 2013 Interest received $ 1 $ 1 $ 1 Interest paid 437 432 512 Income taxes paid 263 132 27 Shares issued for director services in lieu of fees - 1 - |
Revenue By Market (Tables)
Revenue By Market (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Revenue By Market [Abstract] | |
Schedule Of Net Revenue By Market | Year Ended December 31 2015 2014 2013 Medical $ 40,821 $ 35,109 $ 25,978 Hearing Health 21,089 22,959 19,739 Professional Audio Communications 7,829 10,235 7,244 Total Net Sales $ 69,739 $ 68,303 $ 52,961 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Accounting Policies [Line Items] | |||
Allowance for doubtful accounts | $ 135 | $ 120 | |
Number of days for notification of product defect | 30 days | ||
Warranty term | 1 year | ||
Depreciation expense | $ 1,524 | 1,955 | $ 2,214 |
Impairment of long-lived assets from continuing operations | 0 | ||
Impairment of goodwill or intangible assets | 0 | ||
Interest expense | 72 | 56 | 35 |
Amortization expense | 231 | 227 | $ 204 |
Deferred tax asset valuation allowance | $ 9,810 | $ 10,105 | |
Maximum term | 6 years | 6 years | 6 years |
Research and development | $ 5,214 | $ 4,832 | $ 4,181 |
Accrued research and development tax credit grant refunds | 567 | ||
Minimum [Member] | Building and Improvements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life | 5 years | ||
Minimum [Member] | Machinery and Equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life | 3 years | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Vesting period of options under equity incentive plan | 3 years | ||
Maximum term | 10 years | ||
Maximum [Member] | Building and Improvements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life | 40 years | ||
Maximum [Member] | Machinery and Equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life | 12 years | ||
earVenture [Member] | |||
Significant Accounting Policies [Line Items] | |||
Ownership percentage | 50.00% | ||
Customer Funded Tooling [Member] | |||
Significant Accounting Policies [Line Items] | |||
Research and development | $ 121 | $ 140 | $ 352 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Thousands | Jan. 27, 2014 | Jun. 30, 2013 | Dec. 31, 2014 |
Proceeds from sale of business | $ 500 | $ 500 | |
Loss on sale of discontinued operations, net of income taxes | $ (120) | (120) | |
Other Assets Not Expected To Generate Significant Future Cash Flow [Member] | |||
Discontinued Operations, Assets, Impairment Charge Disclosure, Nonrecurring | $ 983 | ||
Accounts Receivable Inventory Fixed Assets And Other Assets [Member] | |||
Discontinued Operations, Assets, Impairment Charge Disclosure, Nonrecurring | $ 717 |
Discontinued Operations (Schedu
Discontinued Operations (Schedule Of Loss On Sale Of Discontinued Operations) (Details) - USD ($) $ in Thousands | Jan. 27, 2014 | Dec. 31, 2014 |
Discontinued Operations [Abstract] | ||
Accounts receivable, net | $ 384 | |
Inventory, net | 128 | |
Property, plant and equipment, net | 127 | |
Other assets | 1 | |
Accounts payable | (69) | |
Net assets sold | 571 | |
Cash proceeds received from Sierra Peaks | 500 | $ 500 |
Net assets sold | (571) | |
Transaction costs | (49) | |
Loss on sale of discontinued operations, net of income taxes | $ (120) | $ (120) |
Discontinued Operations (Summar
Discontinued Operations (Summary Of Results Of Discontinued Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Discontinued Operations [Abstract] | ||
Sales, net | $ 207 | $ 2,480 |
Operating costs and expenses | (357) | (4,693) |
Loss on impairment | (1,700) | |
Operating loss | (150) | (3,913) |
Other income, net | 41 | |
Net loss from discontinued operations | $ (150) | $ (3,872) |
Discontinued Operations (Sche46
Discontinued Operations (Schedule Of Disposal Groups Including Discontinued Operations Nonrecurring Fair Value Measurement) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Long-Lived Assets Of Discontinued Operations [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | $ 604 |
Goodwill Of Discontinued Operations [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | 515 |
Accounts Receivable [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | 73 |
Inventory [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | 468 |
Other Assets [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | 40 |
Fair Value As Of Measurement Date [Member] | Long-Lived Assets Of Discontinued Operations [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | $ 131 |
Fair Value As Of Measurement Date [Member] | Goodwill Of Discontinued Operations [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | |
Fair Value As Of Measurement Date [Member] | Accounts Receivable [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | $ 350 |
Fair Value As Of Measurement Date [Member] | Inventory [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | 26 |
Fair Value As Of Measurement Date [Member] | Other Assets [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | $ 3 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Long-Lived Assets Of Discontinued Operations [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Goodwill Of Discontinued Operations [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Accounts Receivable [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Inventory [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Other Assets [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | |
Significant Other Observable Inputs (Level 2) [Member] | Long-Lived Assets Of Discontinued Operations [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | |
Significant Other Observable Inputs (Level 2) [Member] | Goodwill Of Discontinued Operations [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | |
Significant Other Observable Inputs (Level 2) [Member] | Accounts Receivable [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | |
Significant Other Observable Inputs (Level 2) [Member] | Inventory [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | |
Significant Other Observable Inputs (Level 2) [Member] | Other Assets [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | |
Significant Unobservable Inputs (Level 3) [Member] | Long-Lived Assets Of Discontinued Operations [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | $ 131 |
Significant Unobservable Inputs (Level 3) [Member] | Goodwill Of Discontinued Operations [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | |
Significant Unobservable Inputs (Level 3) [Member] | Accounts Receivable [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | $ 350 |
Significant Unobservable Inputs (Level 3) [Member] | Inventory [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | 26 |
Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | $ 3 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Restructuring Charges [Abstract] | |||
Incurred restructuring charges | $ 83,000 | $ 229,000 | |
Expected amount of restructuring charges to be incurred | $ 0 |
Acquisition Of PC Werth (Narrat
Acquisition Of PC Werth (Narrative) (Details) - USD ($) $ in Thousands | Nov. 03, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||||
Sales, net | $ 69,739 | $ 68,303 | $ 52,961 | ||
Net income (loss) | 2,228 | 2,248 | $ (6,162) | ||
PC Werth Ltd [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 197 | ||||
Assumed payables | $ 393 | ||||
Sales, net | $ 414 | ||||
Net income (loss) | 265 | ||||
Unaudited proforma revenues | 73,900 | $ 73,500 | |||
Acquisition costs | $ 143 | $ 143 |
Acquisition Of PC Werth (Schedu
Acquisition Of PC Werth (Schedule Of Business Acquisition Purchase Price) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 9,551 | $ 9,194 | $ 9,194 | $ 9,709 |
PC Werth Ltd [Member] | ||||
Business Acquisition [Line Items] | ||||
Inventory | 155 | |||
Property, Plant and Equipment | 39 | |||
Intellectual Property | 39 | |||
Goodwill | 357 | |||
Payables | (393) | |||
Purchase price | $ 197 |
Geographic Information (Narrati
Geographic Information (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue, Major Customer [Line Items] | |||
Sales, net | $ 69,739 | $ 68,303 | $ 52,961 |
Net Sales [Member] | One Customer [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of sales and/or receivables | 42.00% | 37.00% | 30.00% |
Net Sales [Member] | Top Five Customers [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales, net | $ 42,000 | $ 39,000 | $ 28,000 |
Percentage of sales and/or receivables | 60.00% | 57.00% | 53.00% |
Accounts Receivable [Member] | Two Customers [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of sales and/or receivables | 27.00% | 28.00% |
Geographic Information (Geograp
Geographic Information (Geographical Distribution Of Long-Lived Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | $ 6,742 | $ 4,245 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | 5,125 | 3,307 |
Other - Primarily Singapore And Indonesia [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | $ 1,617 | $ 938 |
Geographic Information (Geogr52
Geographic Information (Geographical Distribution Of Net Sales) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 69,739 | $ 68,303 | $ 52,961 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 50,899 | 49,978 | 36,902 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 6,634 | 6,834 | 5,714 |
Asia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 10,901 | 9,641 | 7,123 |
All Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 1,305 | $ 1,850 | $ 3,222 |
Goodwill (Schedule Of Goodwill)
Goodwill (Schedule Of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2013 | |
Goodwill [Abstract] | ||
Goodwill, Beginning Balance | $ 9,194 | $ 9,709 |
Changes to the carrying amount | ||
Impairment of goodwill of discontinued operations (Note 2) | $ (515) | |
Acquistion of assets of PC Werth (Note 4) | 357 | |
Goodwill, Ending Balance | $ 9,551 | $ 9,194 |
Inventories (Schedule Of Invent
Inventories (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Raw materials | $ 8,986 | $ 5,887 |
Work-in process | 2,342 | 2,020 |
Finished products and components | 3,144 | 2,076 |
Total | 14,472 | 9,983 |
Domestic [Member] | ||
Inventory [Line Items] | ||
Raw materials | 6,514 | 3,993 |
Work-in process | 1,706 | 1,300 |
Finished products and components | 2,801 | 1,838 |
Total | 11,021 | 7,131 |
Foreign [Member] | ||
Inventory [Line Items] | ||
Raw materials | 2,472 | 1,894 |
Work-in process | 636 | 720 |
Finished products and components | 343 | 238 |
Total | $ 3,451 | $ 2,852 |
Short And Long-Term Debt (Narra
Short And Long-Term Debt (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 28, 2015 | |
Short And Long-Term Debt Instrument [Line Items] | ||||
Quarterly installments | $ 250,000 | |||
Percentage of proceeds from certain asset sales required to pay down term loan | 100.00% | |||
Line of Credit Facility, Interest Rate During Period | 3.68% | 4.51% | 4.30% | |
Amount considered debt default | $ 50,000 | |||
Interest Rate Swap [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Other current liabilities | 39,000 | $ 19,000 | ||
Quarterly installments | 250,000 | |||
Interest rate swap, notional amount | $ 3,750,000 | |||
Federal Funds Rate [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Basis spread on variable rate of debt instruments | 0.50% | |||
Domestic Term-Loan [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Loan amount | $ 5,000,000 | $ 1,750,000 | ||
Seventh Amendment To The Loan And Security Agreement [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Increase in the annual capital expenditure limit | 4,500,000 | |||
Seventh Amendment To The Loan And Security Agreement [Member] | Domestic Term-Loan [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Loan amount | 5,000,000 | |||
Additional term loan facility borrowed | $ 3,250,000 | |||
Debt instrument maturity date | Feb. 28, 2019 | |||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Basis spread on variable rate of debt instruments | 2.50% | |||
Minimum [Member] | Federal Funds Rate [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Basis spread on variable rate of debt instruments | 0.00% | |||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Basis spread on variable rate of debt instruments | 4.00% | |||
Maximum [Member] | Federal Funds Rate [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Basis spread on variable rate of debt instruments | 1.25% | |||
Maximum [Member] | Seventh Amendment To The Loan And Security Agreement [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Investment spending prior to requiring bank approval | $ 4,000,000 | |||
Revolving Credit Facility [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 8,000,000 | |||
Credit facility, non-use fee percentage | 0.25% | |||
Credit facility, outstanding balance | $ 4,674,000 | 3,843,000 | ||
Credit facility, available borrowing capacity | 3,326,000 | 3,456,000 | ||
Letters Of Credit [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | 200,000 | |||
International Credit Facility [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Credit facility, outstanding balance | 913,000 | 920,000 | ||
Credit facility, available borrowing capacity | $ 817,000 | $ 956,000 | ||
Line of Credit Facility, Interest Rate During Period | 3.37% | 4.50% | ||
International Credit Facility [Member] | Minimum [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Basis spread on variable rate of debt instruments | 0.75% | |||
International Credit Facility [Member] | Maximum [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Basis spread on variable rate of debt instruments | 2.50% |
Short And Long-Term Debt (Summa
Short And Long-Term Debt (Summary Of Short And Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total Debt | $ 9,837 | $ 6,513 |
Less: Current maturities | (1,908) | (1,886) |
Total long-term debt | 7,929 | 4,627 |
Domestic Asset-Based Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 4,674 | 3,843 |
Foreign Overdraft And Letter Of Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 913 | 920 |
Domestic Term-Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 4,250 | $ 1,750 |
Short And Long-Term Debt (Sched
Short And Long-Term Debt (Schedule Of Payments Due By Period) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
2,016 | $ 1,908 | |
2,017 | 1,005 | |
2,018 | 1,000 | |
2,019 | $ 5,924 | |
Thereafter | ||
Total Debt | $ 9,837 | $ 6,513 |
Domestic Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
2,016 | ||
2,017 | ||
2,018 | ||
2,019 | $ 4,674 | |
Thereafter | ||
Total Debt | $ 4,674 | |
Domestic Term-Loan [Member] | ||
Debt Instrument [Line Items] | ||
2,016 | 1,000 | |
2,017 | 1,000 | |
2,018 | 1,000 | |
2,019 | $ 1,250 | |
Thereafter | ||
Total Debt | $ 4,250 | 1,750 |
Foreign Overdraft And Letter Of Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
2,016 | 908 | |
2,017 | $ 5 | |
2,018 | ||
2,019 | ||
Thereafter | ||
Total Debt | $ 913 | $ 920 |
Other Accrued Liabilities (Comp
Other Accrued Liabilities (Components Of Other Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Accrued Liabilities [Abstract] | ||
Taxes, including payroll withholdings and excluding income taxes | $ 48 | $ 286 |
Accrued professional fees | 173 | 143 |
Pension | 93 | 93 |
Postretirement benefit obligation | 103 | 103 |
Other | 862 | 739 |
Other accrued liabilities, Total | $ 1,279 | $ 1,364 |
Domestic And Foreign Income T59
Domestic And Foreign Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | |||
Change in valuation allowance | $ (295,000) | $ 59,000 | $ (637,000) |
Net Operating Loss Carryforwards Limitations | 388,000 | ||
Unrecognized tax benefits | 0 | 0 | |
Accrued amounts for payments of interest penalties | $ 0 | $ 0 | |
Minimum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Percentage likelihood that benefit will be realized upon settlement with taxing authorities | 50.00% | ||
Federal [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforward | $ 21,784,000 | ||
Net operating loss carryforwards expiration date | Jan. 31, 2022 | ||
State [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforward | $ 6,863,000 | ||
Net operating loss carryforwards expiration date | Jan. 31, 2017 |
Domestic And Foreign Income T60
Domestic And Foreign Income Taxes (Domestic And Foreign Income Taxes (Benefits)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Domestic And Foreign Income Taxes [Abstract] | |||
Current, Federal | |||
Current, State | $ 28 | ||
Current, Foreign | $ 27 | $ 428 | 189 |
Total Current | $ 27 | $ 428 | $ 217 |
Deferred, Federal | |||
Deferred, State | |||
Deferred, Foreign | $ (8) | ||
Income Tax Expense | 19 | $ 428 | $ 217 |
Foreign | 1,792 | 2,402 | (139) |
Domestic | 344 | 544 | (1,934) |
Income (loss) from continuing operations before income taxes and discontinued operations | $ 2,136 | $ 2,946 | $ (2,073) |
Domestic And Foreign Income T61
Domestic And Foreign Income Taxes (Reconciliation Of Effective Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Domestic And Foreign Income Taxes [Abstract] | |||
Tax provision at statutory rate | 34.00% | 34.00% | (34.00%) |
Change in valuation allowance | (13.80%) | (1.25%) | (5.12%) |
Impact of permanent items, including stock based compensation expense | (30.97%) | 16.40% | 24.15% |
Effect of foreign tax rates | 11.36% | (18.04%) | 6.35% |
State taxes net of federal benefit | 2.78% | (3.86%) | (1.43%) |
Effect of dividend of foreign subsidiary in prior year | 7.52% | 3.94% | 17.16% |
Prior year provision to return true-up | (9.73%) | (10.27%) | (5.10%) |
Non-controlling interest | 1.77% | ||
Other | (2.04%) | (6.40%) | 8.45% |
Domestic and foreign income tax rate | 0.89% | 14.52% | 10.46% |
Domestic And Foreign Income T62
Domestic And Foreign Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Domestic And Foreign Income Taxes [Abstract] | ||
Net operating loss carry forwards and credits | $ 7,931 | $ 8,125 |
Depreciation and amortization | 284 | |
Inventory | 563 | 436 |
Compensation accruals | 1,273 | 1,111 |
Accruals and reserves | 113 | 88 |
Credits | 236 | 225 |
Other | 212 | 190 |
Total Deferred tax assets | 10,328 | 10,459 |
Less: valuation allowance | (9,810) | (10,105) |
Deferred tax assets net of valuation allowance | 518 | 354 |
Deferred tax liabilities depreciation and amortization | (156) | |
Undistributed Earnings of Foreign Subsidiary | (319) | (354) |
Total deferred tax liabilities | (475) | $ (354) |
Net deferred tax | $ 43 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Benefit Plans [Abstract] | |||
Company plan contirbutions | $ 341 | $ 271 | $ 0 |
Estimated post-retirement medical benefit obligation | 62 | ||
Unrecognized prior service cost reduction | $ 1,100 | ||
Assumed health care cost trend rate | 7.00% | ||
Ultimate health care cost trend rate | 3.50% | ||
Year that plan rate reaches ultimate health care cost trend rate | 2,019 | ||
Expected future contributions | $ 103 | ||
Discount rate used to determine year-end expense | 4.50% | 4.50% | 4.50% |
Estimated pension plans benefit obligation | $ 133 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule Of Amounts Recognized In Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Change in Projected Benefit Obligation | ||
Projected benefit obligation at January 1 | $ 588 | $ 633 |
Interest cost | 25 | 26 |
Actuarial loss | 134 | 36 |
Participant contributions | 25 | 27 |
Benefits paid | (127) | (134) |
Projected benefit obligation at December 31 | 645 | 588 |
Change in fair value of plan assets | ||
Employer contributions | 102 | 107 |
Participant contributions | 25 | 27 |
Benefits paid | (127) | (134) |
Funded status | (645) | (588) |
Current liabilities | 103 | 103 |
Noncurrent liabilities | 542 | 485 |
Net amount recognized | $ 645 | $ 588 |
Amount recognized in other comprehensive income | ||
Unrecognized net actuarial gain | ||
Total |
Employee Benefit Plans (Sched65
Employee Benefit Plans (Schedule Of Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Benefit Plans [Abstract] | |||
Annual increase in cost of benefits | 7.00% | 7.00% | 7.00% |
Discount rate used to determine year-end obligations | 4.50% | 4.50% | 4.00% |
Discount rate used to determine year-end expense | 4.50% | 4.50% | 4.50% |
Employee Benefit Plans (Sched66
Employee Benefit Plans (Schedule Of Liabilities Recorded) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Current portion | $ 103 | $ 103 |
Long-term portion | 542 | 485 |
Total liability at December 31 | 645 | 588 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current portion | 93 | 93 |
Long-term portion | 805 | 741 |
Total liability at December 31 | $ 898 | $ 834 |
Employee Benefit Plans (Sched67
Employee Benefit Plans (Schedule Of Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Employee Benefit Plans [Abstract] | |
2,016 | $ 196 |
2,017 | 193 |
2,018 | 177 |
2,019 | 164 |
2,020 | 152 |
Years 2021 - 2025 | $ 532 |
Currency Translation And Tran68
Currency Translation And Transaction Adjustments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Currency Translation And Transaction Adjustments [Abstract] | |||
Foreign currency transaction loss | $ 40 | $ 51 | $ 42 |
Common Stock And Stock Option69
Common Stock And Stock Options (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate number of shares of common stock for which awards can be granted | 490,000 | ||
Shares issued in lieu of cash for director fees under director program | 0 | 0 | 0 |
Maximum amount of common stock participants may elect to purchase | $ 100 | ||
Window period | 20 days | ||
Shares repurchased under management purchase program | 0 | 1,000 | 0 |
Weighted average remaining contractual life of options exercisable, years | 4 years 1 month 21 days | ||
Weighted average remaining contractual life of options outstanding, years | 5 years 2 months 27 days | ||
Total intrinsic value of options exercised | $ 630 | $ 635 | $ 12 |
Weighted average fair value of options granted | $ 4.50 | $ 3.28 | $ 4.06 |
Forfeiture rate | 5.00% | ||
Stock option expense | $ 578 | $ 457 | $ 532 |
Stock options exercised using cashless method | 64,000 | ||
Unrecognized compensation costs related to non-vested awards | $ 718 | ||
Unrecognized compensation costs related to non-vested awards, recognition period | 1 year 10 months 13 days | ||
2015 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate number of shares of common stock for which awards can be granted | 500,000 | ||
2001 Stock Option Plan And Non-Employee Directors' Stock Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate number of shares of common stock for which awards can be granted | 1,282,000 | ||
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares approved under purchase plan | 200,000 | ||
Shares purchased for award | 14,000 | 16,000 | 26,000 |
Minimum [Member] | 2015 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of options under equity incentive plan | 3 years | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of options under equity incentive plan | 3 years | ||
Maximum [Member] | 2015 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of options under equity incentive plan | 10 years |
Common Stock And Stock Option70
Common Stock And Stock Options (Summary Of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Common Stock And Stock Options [Abstract] | |||
Number of Shares, Outstanding | 1,313 | 1,407 | 1,244 |
Number of Shares, Options forfeited or cancelled | (63) | (15) | |
Number of Shares, Options granted | 170 | 174 | 192 |
Number of Shares, Options exercised | (159) | (205) | (14) |
Number of Shares, Outstanding | 1,324 | 1,313 | 1,407 |
Weighted-average Exercise Price, Outstanding | $ 5.86 | $ 5.75 | $ 5.97 |
Weighted-average Exercise Price, Options forfeited or cancelled | 7.87 | 5.21 | |
Weighted-average Exercise Price, Options granted | 7.14 | 4.99 | 4.06 |
Weighted-average Exercise Price, Options exercised | 3.12 | 3.74 | 2.86 |
Weighted-average Exercise Price, Outstanding | $ 6.36 | $ 5.86 | $ 5.75 |
Aggregate Intrinsic Value, Outstanding | $ 2,640 | ||
Number of Shares, Exercisable | 989 | 984 | |
Weighted-average Exercise Price, Exercisable | $ 6.50 | $ 6.17 | |
Aggregate Intrinsic Value, Exercisable | $ 2,076 | $ 1,830 | |
Number of Shares, Available for future grant | 490 |
Common Stock And Stock Option71
Common Stock And Stock Options (Schedule Of Weighted Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility, minimum | 65.15% | 75.03% | 70.84% |
Expected volatility, maximum | 72.81% | 75.59% | 72.19% |
Risk-free interest rate, minimum | 1.42% | 2.00% | 0.91% |
Risk-free interest rate, maximum | 1.88% | 2.07% | 1.07% |
Expected life (years) | 6 years | 6 years | 6 years |
Maximum [Member] | |||
Expected life (years) | 10 years |
Income (Loss) Per Share (Narrat
Income (Loss) Per Share (Narrative) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income (Loss) Per Share [Abstract] | |||
Securities excluded from computation of diluted income per share | 71 | 21 | 1,407 |
Income (Loss) Per Share (Reconc
Income (Loss) Per Share (Reconciliation Between Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income (Loss) Per Share [Abstract] | |||
Income (loss) before discontinued operations | $ 2,117 | $ 2,518 | $ (2,290) |
Loss from discontinued operations, net of income taxes (note 4) | (270) | (3,872) | |
Net income (loss) | 2,117 | 2,248 | (6,162) |
Less: Loss allocated to non-controlling interest | (111) | ||
Net income (loss) attributable to IntriCon shareholders | $ 2,228 | $ 2,248 | $ (6,162) |
Basic - weighted shares outstanding | 5,907 | 5,791 | 5,699 |
Weighted shares assumed upon exercise of stock options | 334 | 247 | |
Diluted - weighted shares outstanding | 6,241 | 6,038 | 5,699 |
Continuing operations | $ 0.38 | $ 0.43 | $ (0.40) |
Discontinued operations | (0.05) | (0.68) | |
Net income (loss) per share: | 0.38 | 0.39 | (1.08) |
Continuing operations | 0.36 | 0.42 | (0.40) |
Discontinued operations | (0.04) | (0.68) | |
Net income (loss) per share: | $ 0.36 | $ 0.37 | $ (1.08) |
Contigencies And Commitments (D
Contigencies And Commitments (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Selas SAS, Liabilities | $ | $ 421 | ||
Rent expense | $ | $ 1,300 | $ 1,071 | $ 1,304 |
Initial term | 1 year | ||
Remaining rentals payable, 2016 | $ | $ 1,132 | ||
Remaining rentals payable, 2017 | $ | 517 | ||
Remaining rentals payable, 2018 | $ | $ 407 | ||
Minnesota [Member] | Lease Expiration In 2016 [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of leased facilities | 1 | ||
Minnesota [Member] | Lease Expiration In 2017 [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of leased facilities | 1 | ||
California [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of leased facilities | 1 | ||
Singapore [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of leased facilities | 1 | ||
Indonesia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of leased facilities | 1 | ||
United Kingdom [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of leased facilities | 1 | ||
Germany [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of leased facilities | 1 | ||
Minimum [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Base salary term | 10 months | ||
Employment period | 1 year | ||
Maximum [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Base salary term | 2 years |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related-Party Transactions [Abstract] | |||
Total base rent expense, real estate taxes and other charges | $ 487 | $ 486 | $ 486 |
Legal services and costs | $ 203 | $ 156 | $ 228 |
Statements Of Cash Flows (Suppl
Statements Of Cash Flows (Supplemental Disclosures Of Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statements Of Cash Flows [Abstract] | |||
Interest received | $ 1 | $ 1 | $ 1 |
Interest paid | 437 | 432 | 512 |
Income taxes paid | $ 263 | 132 | $ 27 |
Shares issued for director services in lieu of fees | $ 1 |
Revenue By Market (Schedule Of
Revenue By Market (Schedule Of Net Revenue By Market) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue, Major Customer [Line Items] | |||
Total Net Sales | $ 69,739 | $ 68,303 | $ 52,961 |
Medical [Member] | |||
Revenue, Major Customer [Line Items] | |||
Total Net Sales | 40,821 | 35,109 | 25,978 |
Hearing Health [Member] | |||
Revenue, Major Customer [Line Items] | |||
Total Net Sales | 21,089 | 22,959 | 19,739 |
Professional Audio Communications [Member] | |||
Revenue, Major Customer [Line Items] | |||
Total Net Sales | $ 7,829 | $ 10,235 | $ 7,244 |