Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 21, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | 6,933,547 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 48,858,093 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements of Operations [Abstract] | |||
Sales, net | $ 88,310 | $ 68,009 | $ 68,527 |
Cost of sales | 61,819 | 50,937 | 49,771 |
Gross profit | 26,491 | 17,072 | 18,756 |
Operating expenses: | |||
Sales and marketing | 9,447 | 4,700 | 3,733 |
General and administrative | 10,339 | 9,154 | 7,013 |
Research and development | 4,458 | 4,688 | 4,279 |
Restructuring charges (Note 3) | 132 | ||
Total operating expenses | 24,244 | 18,674 | 15,025 |
Operating income (loss) | 2,247 | (1,602) | 3,731 |
Interest expense | (716) | (553) | (369) |
Other expense, net | (367) | (602) | (261) |
Income (loss) from continuing operations before income taxes and discontinued operations | 1,164 | (2,757) | 3,101 |
Income tax expense | 8 | 217 | 19 |
Income (loss) from continuing operations before discontinued operations | 1,156 | (2,974) | 3,082 |
Loss from discontinued operations and impairment, net of income taxes (Note 2) | (128) | (1,770) | (965) |
Loss on sale of discontinued operations (Note 2) | (164) | ||
Net income (loss) | 864 | (4,744) | 2,117 |
Less: Loss allocated to non-controlling interest | (938) | (157) | (111) |
Net income (loss) attributable to IntriCon shareholders | $ 1,802 | $ (4,587) | $ 2,228 |
Basic income (loss) per share attributable to IntriCon shareholders: | |||
Continuing operations | $ 0.31 | $ (0.43) | $ 0.54 |
Discontinued operations | (0.04) | (0.27) | (0.16) |
Net income (loss) per share: | 0.26 | (0.71) | 0.38 |
Diluted income (loss) per share attributable to IntriCon shareholders: | |||
Continuing operations | 0.29 | (0.43) | 0.51 |
Discontinued operations | (0.04) | (0.27) | (0.15) |
Net income (loss) per share: | $ 0.25 | $ (0.71) | $ 0.36 |
Average shares outstanding: | |||
Basic | 6,852 | 6,497 | 5,907 |
Diluted | 7,307 | 6,497 | 6,241 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | |||
Net income (loss) | $ 864 | $ (4,744) | $ 2,117 |
Interest rate swap, net of taxes of $0 | 26 | 22 | (20) |
Pension and postretirement obligations, net of taxes of $0 | 20 | 20 | (195) |
Foreign currency translation adjustment, net of taxes of $0 | 235 | (335) | (104) |
Comprehensive income (loss) | $ 1,145 | $ (5,037) | $ 1,798 |
Consolidated Statements Of Com4
Consolidated Statements Of Comprehensive Income (Loss) (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | |||
Interest rate swap, tax | $ 0 | $ 0 | $ 0 |
Pension and postretirement obligations, tax | 0 | 0 | 0 |
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Current assets: | |||
Cash | $ 373 | $ 667 | |
Restricted cash | 644 | 595 | |
Accounts receivable, less allowance for doubtful accounts of $332 at December 31, 2017 and $170 at December 31, 2016 | 9,052 | 7,289 | |
Inventories | 15,397 | 12,343 | |
Other current assets | 1,544 | 957 | |
Current assets of discontinued operations | 123 | ||
Total current assets | 27,010 | 21,974 | |
Property, plant, and equipment | 40,124 | 40,152 | |
Less: Accumulated depreciation | 32,949 | 33,546 | |
Net machinery and equipment | 7,175 | 6,606 | |
Goodwill | 10,808 | 10,555 | |
Intangible assets, net | 2,740 | 2,920 | |
Investment in partnerships | 1,616 | 146 | |
Other assets, net | 3,835 | 1,557 | |
Total assets | [1] | 53,184 | 43,758 |
Current liabilities: | |||
Current maturities of long-term debt | 2,040 | 2,346 | |
Accounts payable | 10,423 | 6,722 | |
Accrued salaries, wages and commissions | 3,113 | 2,413 | |
Other accrued liabilities | 3,224 | 1,914 | |
Liabilities of discontinued operations | 123 | ||
Total current liabilities | 18,800 | 13,518 | |
Long-term debt, less current maturities | 9,321 | 9,284 | |
Other postretirement benefit obligations | 455 | 501 | |
Accrued pension liabilities | 772 | 737 | |
Other long-term liabilities | 3,172 | 707 | |
Total liabilities | [1] | 32,520 | 24,747 |
Commitments and contingencies (Note 18) | |||
Equity: | |||
Common stock, $1.00 par value per share; 20,000 shares authorized; 6,900 and 6,820 shares issued and outstanding at December 31, 2017 and December 31, 2016, respectively | 6,900 | 6,820 | |
Additional paid-in capital | 21,581 | 21,383 | |
Accumulated deficit | (6,831) | (8,633) | |
Accumulated other comprehensive loss | (733) | (1,014) | |
Total shareholders' equity | 20,917 | 18,556 | |
Non-controlling interest | (253) | 455 | |
Total equity | 20,664 | 19,011 | |
Total liabilities and equity | $ 53,184 | $ 43,758 | |
[1] | Assets of Hearing Help Express (HHE), a consolidated variable interest entity (at the end of 2016), that can only be used to settle obligations of HHE were $5,159 at December 31, 2016. Liabilities of HHE, for which creditors do not have recourse to the general credit of IntriCon, were $3,833 at December 31, 2016. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts receivable, allowance for doubtful accounts | $ 332 | $ 170 | |
Common shares, par value | $ 1 | $ 1 | |
Common shares, shares authorized | 20,000,000 | 20,000,000 | |
Common shares, shares issued | 6,900,000 | 6,820,000 | |
Common shares, shares outstanding | 6,900,000 | 6,820,000 | |
Assets | [1] | $ 53,184 | $ 43,758 |
Liabilities | [1] | $ 32,520 | 24,747 |
Hearing Help Express (HHE) [Member] | |||
Assets | 5,159 | ||
Liabilities | $ 3,833 | ||
[1] | Assets of Hearing Help Express (HHE), a consolidated variable interest entity (at the end of 2016), that can only be used to settle obligations of HHE were $5,159 at December 31, 2016. Liabilities of HHE, for which creditors do not have recourse to the general credit of IntriCon, were $3,833 at December 31, 2016. |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 864 | $ (4,744) | $ 2,117 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 2,194 | 2,041 | 1,755 |
Stock-based compensation | 844 | 685 | 579 |
Loss on impairment of assets of discontinued operations | 796 | ||
Loss on sale of discontinued operations | 164 | ||
Change in deferred gain | (55) | (110) | |
Loss on disposition of property | 9 | 55 | |
Change in allowance for doubtful accounts | 162 | 35 | 15 |
Equity in loss of investments | 421 | 78 | 208 |
Amortization of debt issuance costs | 80 | 57 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (2,040) | 1,493 | (842) |
Inventories | (3,114) | 1,813 | (4,329) |
Other assets | (811) | (741) | (13) |
Accounts payable | 3,729 | (1,386) | 1,588 |
Accrued expenses | 1,622 | (545) | (118) |
Other liabilities | 106 | 13 | (186) |
Net cash provided by (used in) operating activities | 4,230 | (405) | 664 |
Cash flows from investing activities: | |||
Proceeds from sale of property, plant and equipment | 19 | ||
Investment in partnerships | (1,776) | ||
Purchases of property, plant and equipment | (2,313) | (1,766) | (3,982) |
Net cash used in investing activities | (4,720) | (2,302) | (4,179) |
Cash flows from financing activities: | |||
Proceeds from long-term borrowings | 19,162 | 19,357 | 19,615 |
Repayments of long-term borrowings | (19,373) | (19,524) | (16,284) |
Payment of debt issuance costs | (139) | (140) | |
Proceeds from equity offering, net of offering costs | 3,678 | ||
Proceeds from employee stock purchases and exercise of stock options | 314 | 137 | 340 |
Change in restricted cash | (67) | 23 | 60 |
Net cash (used in) provided by financing activities | (103) | 3,531 | 3,731 |
Effect of exchange rate changes on cash | 299 | (524) | (177) |
Net increase in cash | (294) | 300 | 39 |
Cash, beginning of year | 667 | 367 | 328 |
Cash, beginning of year | 373 | 667 | 367 |
PC Werth Ltd [Member] | |||
Cash flows from investing activities: | |||
Purchase of businesses, net of cash received (Note 4) | $ (197) | ||
Hearing Help Express (HHE) [Member] | |||
Cash flows from investing activities: | |||
Purchase of businesses, net of cash received (Note 4) | $ (650) | $ (536) |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Non-Controlling Interest [Member] | Total |
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-based compensation | 579 | 579 | ||||
Net income (loss) | 2,228 | $ (111) | 2,117 | |||
Investment by non-controlling interest | 73 | 73 | ||||
Comprehensive 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 | |||||
Exercise of stock options | $ 16 | 11 | $ 27 | |||
Exercise of stock options, shares | 16 | 61 | ||||
Shares issued from Equity Offering | $ 805 | 2,873 | $ 3,678 | |||
Shares issued from Equity Offering, shares | 805 | 805 | ||||
Shares issued under the ESPP | $ 18 | 93 | $ 111 | |||
Shares issued under the ESPP, shares | 18 | |||||
Stock-based compensation | 685 | 685 | ||||
Net income (loss) | (4,587) | (157) | (4,744) | |||
Investment by non-controlling interest | 650 | 650 | ||||
Comprehensive loss | (293) | (293) | ||||
Balance at Dec. 31, 2016 | $ 6,820 | 21,383 | (8,633) | (1,014) | 455 | 19,011 |
Balance, shares at Dec. 31, 2016 | 6,820 | |||||
Exercise of stock options | $ 69 | 131 | $ 200 | |||
Exercise of stock options, shares | 69 | 220 | ||||
Shares issued under the ESPP | $ 11 | 103 | $ 114 | |||
Shares issued under the ESPP, shares | 11 | |||||
Stock-based compensation | 844 | 844 | ||||
Net income (loss) | 1,802 | (938) | 864 | |||
Comprehensive loss | 281 | 281 | ||||
Acquisition of non-controlling interest | (650) | (650) | ||||
Allocation of non-controlling interest at acquisition (Note 4) | (880) | 880 | ||||
Balance at Dec. 31, 2017 | $ 6,900 | $ 21,581 | $ (6,831) | $ (733) | $ (253) | $ 20,664 |
Balance, shares at Dec. 31, 2017 | 6,900 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary Of Significany Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Headquartered in Arden Hills, Minnesota, IntriCon Corporation (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 based hearing health care 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 of Illinois, Singapore, Indonesia, the United Kingdom and Germany. Basis of Presentation – In December 2016, the Company’s board of directors approved plans to discontinue its cardiac diagnostic monitoring business. The Company sold the cardiac diagnostic monitoring business on February 17, 2017 to Datrix LLC. 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 Note 2. Consolidation – The consolidated financial statements include the accounts of the Company and its consolidated 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. Discontinued Operations – The Company records discontinued operations when the disposal of separately identified business unit constitutes a significant strategic shift in the Company’s operations. Non-Controlling Interests – The Company owns 50 percent of earVenture and owned 20 percent of Hearing Help Express, Inc. (“Hearing Help Express” or HHE”) from October 2016 until December 2017, when it acquired the 80 percent noncontrolling interest of HHE. See further information at Note 4. The Company has consolidated the results of earVenture and HHE for all periods presented based on the Company’s ability to control the operations of the entities and the likelihood that the Company bears the largest risk and reward of their financial results. The Company allocates profits and losses according to ownership percentages, unless contractual agreements expressly dictate otherwise. In addition, profit or loss on downstream eliminated transactions are attributable to the Company. 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 attributed to the controlling interest. Changes 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 has determined that the Company operates in two reportable segments, our body-worn device segment and our direct to consumer hearing health segment, as further described in Note 5. 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 – For its body-worn device segment, 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. For its direct to consumer segment, the Company recognizes revenue for hearing aids after the customer trial period has ended (generally 60 days from shipment). Body-worn device segment customers have 30 days to notify the Company if the product is damaged or defective. There are no other 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 and 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. An allowance for doubtful accounts is established based on factors surrounding the credit risk of specific customers, historical trends and other information. The allowance for doubtful accounts balance was $332 and $170 as of December 31, 2017 and 2016, respectively. Inventories – Inventories are stated at the lower of cost or market. The cost of the inventories is 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 $ 1,739 , $ 1,870 and $1,524 for the years ended December 31, 2017, 2016, and 2015, respectively. Intangible Assets – Definite-lived intangible assets consist of various acquired Hearing Help Express trademarks and customer relationships which are amortized over eighteen to twenty years. Impairment of Long-lived Assets and Long-lived Assets to be Disposed of – The Company reviews its long-lived assets, certain identifiable intangibles, other assets 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, 2017, 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 may apply a qualitative assessment to determine if it is more likely than not that goodwill is impaired. If a reporting unit does not pass the qualitative assessment , or the Company choses to skip the assessment, it performs a test comparing fair value of a reporting unit to its carrying value. The Company would need to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The Company has concluded that no impairment of goodwill or intangible assets occurred within continuing operations during the years ended December 31, 2017, 2016 and 2015. Other assets, net – The principal amounts included in other assets, net are technology related assets, of which, $2,732 relates to technology access with NXP Semiconductors. The Company capitalizes costs of acquired technology which provide a future economic benefit. Amortization expense was $ 455, $ 159 and $ 231 for the years ended December 31, 2017, 2016, and 2015 , respectively. Investment in partnerships – Certain of the Company’s investments in equity securities are long-term, strategic investments in companies. Depending on whether the Company has significant influence over the entity, the Company accounts for these investments under the cost or 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. If payment for an investment exceeds the underlying book value of the investment , the Company allocates the difference to the fair value of the investment assets and to goodwill; and records related amortization of those assets within the equity investment balance and related equity in income (loss) of the investment. 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. Other long-term liabilities – The principal amounts included in other long-term liabilities, are amounts owed to NXP to gain access to their technology and other items. Currently, the Company owes NXP $2,600 which is due as purchases are made, but no later than December 20, 2019. The parties have agreed to review and extend the payment date if warranted. 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 Company recognizes accrued interest and penalties related to uncertain tax positions in income tax expense. At December 31, 2017 and 2016, 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 2009-2016. 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 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. 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, based on the Black-Scholes model, of stock options and awards ratably over the vesting period of the related share-based award. 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 amounted to $1,696 , $190 , and $0 in 2017, 2016 and 2015, respectively, and are charged to expense when incurred. Research and Development Costs – Research and development costs, net of customer funding, amounted to $ 4,458 , $ 4,688 , and $ 4, 279 in 2017, 2016 and 2015, 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. 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 $ 95 , $ 102 and $ 121 for the years ended December 31, 2017, 2016 and 2015, 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. Subsequent Event Policy – The Company has evaluated events occurring after the date of the consolidated financial statements for events requiring recording or disclosure in the financial statements. 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 The Company has determined the impact of this pronouncement on its consolidated financial statements and related disclosures to be immaterial. The Company has determined the impact of this pronouncement on its consolidated financial statements and related disclosures to be immaterial. The Company implemented this ASU in 2016 which had an immaterial effect. The Company has determined the impact of this pronouncement on its consolidated financial statements and related disclosures to be immaterial. The Company has established a timeline related to the implementation of the standard and believes the timeline is sufficient to implement the new standard. We are currently assessing the impact on the Company’s consolidated financial statements. In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-07, Retirement Benefits – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This guidance requires entities to present the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the income statement line items where they report compensation cost. Entities will present all other components of net benefit cost outside operating income, if this subtotal is presented. The rules related to the timing of when costs are recognized or how they are measured have not changed. This amendment only impacts where those costs are reflected within the income statement. In addition, only the service cost component will be eligible for capitalization in inventory and other assets. This guidance becomes effective January 1, 2018. Early adoption is permitted. The Company does not anticipate that the adoption of this new standard will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04 “Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This new standard simplifies the accounting for goodwill impairments by eliminating step 2 from the goodwill impairment test. The amendments in this update are effective for annual impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for goodwill impairment tests performed on or after January 1, 2017. The Company elected to adopt this new standard in 2017 and the adoption of this new standard did not have a material impact on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, a consensus of the FASB’s Emerging Issues Task Force (the “Task Force”). The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. This update is effective for years beginning after December 31, 2018. The Company has restricted cash balances and anticipates that the adoption of this new standard will change the cash amounts and financing activities on its statement of cash flows on its consolidated financial statements. The Company is currently evaluating the effect this new standard will have on the Company’s consolidated financial statements. In February 2016, the FASB issued its final standard on accounting for leases. This standard, issued as ASU 2016-02, requires that an entity that is a lessee recognize lease assets and lease liabilities on the balance sheet for all leases and disclose key information about leasing arrangements. This update is effective for financial statement periods beginning after December 15, 2018, with earlier application permitted. The Company has not yet determined the impact of this pronouncement on its consolidated financial statements and related disclosures but anticipates it will be required to record additional lease liabilities and corresponding right s to use assets. In May 2014, the FASB issued guidance creating ASC Section 606, “Revenue from Contracts with Customers”, which establishes a comprehensive new model for the recognition of revenue from contracts with customers. This model is based on the core principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company has performed a review of the requirements of the new guidance and has identified which of its contracts will be within the scope of ASC 606. The Company has applied the five-step model of the new standard to a selection of contracts within each of its revenue streams and has compared the results to its current accounting practices. Based on this analysis, the adoption of ASC 606 will likely have a material impact on the Company’s consolidated financial statements by accelerating revenue recognition for some revenue streams. The Company will provide expanded disclosures as a result of the adoption. The Company will adopt the new standard effective January 1, 2018 using the full retrospective transition method of adoption. The Company has assessed and anticipates that there will be additional processes and internal controls to support recognition and disclosure of ASC 606. In the first quarter of 2018, the Company will be revising its revenue recognition accounting policy and expanding revenue disclosures to reflect the requirements of ASC 606, which include disclosures related to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required under the standard regarding customer contracts, significant judgements and assets recognized from the costs to obtain or fulfill a contract. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | 2. DISCONTINUED OPERATIONS In December 2016, the Company ’s board of directors approved plans to discontinue its cardiac diagnostic monitoring business. The Company sold the cardiac diagnostic monitoring business on February 17, 2017 to Datrix, LLC. The following table shows the cardiac diagnostic monitoring business balance sheets as of December 31, 2017 and 2016: December 31, December 31, 2017 2016 Accounts receivable, net $ - $ 123 Current assets of discontinued operations $ - $ 123 Accounts payable - 22 Accrued compensation and other liabilities - 101 Current liabilities of discontinued operations $ - $ 123 The following table shows the results of the cardiac diagnostic monitoring discontinued operations: Year Ended December 31, December 31, December 31, 2017 2016 2015 Sales, net $ 140 $ 1,161 $ 1,212 Operating costs and expenses (268) (2,135) (2,177) Loss on impairment - (796) - Net loss from discontinued operations (128) (1,770) (965) the impairment of other short and long-term assets, the Company utilized the market value approach. 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, 2016 as set forth in the table below. These charges were reflected in the Company’s discontinued operations in 2016. In 2016, the Company evaluated the cardiac diagnostic monitoring business for impairment and recorded non-cash impairment charges of $796. In determining the nonrecurring fair value measurements of the impairment of other short and long-term assets, the Company utilized the market value approach. 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, 2016 as set forth in the table below. These charges were reflected in the Company’s discontinued operations in 2016. 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 Accounts Receivable $ 123 $ - $ - $ 175 $ 52 Inventory - - - 726 726 Other Assets - - - 18 18 The Company sold the assets of the discontinued operations on February 17, 2017 to Datrix, LLC , who also assumed certain liabilities as part of the asset sale agreement . The Company recognized a loss of $164 relating to the sale of the discontinued operations. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | 3. RESTRUCTURING CHARGES During 2016, the Company incurred restructuring charges of $132 , related to IntriCon UK Limited facility moving costs. The Company does not expect to incur any additional cash charg es related to this restructuring. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Acquisitions [Abstract] | |
Acquisitions | 4. ACQUIS I TIONS Acquisition of Hearing Help Express In October 2016 , the Company purchased 20 percent of Hearing Help Expres s . The Company paid a total of $693 . Based on the facts and circumstances surrounding the management of the business and the funding of working capital needs, the Company determined that based on its ability to control the operations of Hearing Help Express and the likelihood that the Company bears the largest risk and reward of its financial results , the results of Hearing Help Express should be consolidated in the Company’s consolidated financial statements. The Company accounted for the transaction as a business combination in the fourth quarter of 2016. The transaction allows the Company entry into the sale of products directly to consumers in the United States. In accordance with ASC 805, the purchase price was allocated based on estimates of the fair value of assets acquired and liabilities assumed. The purchase price was allocated as follows: Cash $ 157 Inventory 341 Accounts Receivable 333 Property, Plant and Equipment 9 Intangible Assets 2,920 Goodwill 1,257 Other Assets 500 Note Payable (2,000) Deferred Revenue (717) IRS Note (461) Non-Controlling Interest (650) Other Payables (996) $ 693 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 recognized revenue of $1,025 and losses of approximately $3 relating to the sales of the hearing devices and accessories by HHE from October 19, 2016 through December 31, 2016. The Company has recognized revenue of $6,492 and losses of approximately $324 relating to the sales of the hearing devices and accessories by HHE during 2017 . Acquisition costs of $216 were incurred and recorded during the year ended December 31, 2016 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 As part of the agreement to acquire the 20 percent interest, the Company also obtained the right to acquire the remaining 80 percent ownership interest for $650 in cash, the guarantee or repayment of approximately $1,800 in debt to HHE’s 80 percent holder and an earnout. The Company exercised the right to acquire the remaining ownership in January 2017 and closed on the acquisition of the remaining 80 percent interest in December 2017. Because the Company maintained control upon acquiring the ownership, there was no impact on the assets and liabilities acquired. The Company did record a $880 change to additional paid-in capital related to losses previously allocated to the noncontrolling interest. Acquisition of Assets 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), through its IntriCon UK subsidiary. Under the terms of the agreement, the Company paid PC Werth Ltd a total of $197 in cash and 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 represents the excess of the purchase price for the PC Werth acquisition 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 losses of approximately $265 relating to the sales of the hearing devices and accessories from November 2015 through December 31, 2015. 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. Unaudited Supplemental Pro Forma Financial Information The following unaudited supplemental pro forma information combines the Company’s results with those of PC Werth Ltd (predecessor to IntriCon UK) and Hearing Help Express as if the acquisitions had occurred at the beginning of each of the periods presented. The Company notes Hearing Help Express’s earnings were not included within the pro forma table below for 2015 as this company was in bankruptcy and these years were not reflective of the normal operations of Hearing Help Express. This unaudited pro forma information is not intended to represent or be indicative of the Company’s consolidated results of operations or financial condition that would have been reported for the periods presented had the acquisitions been completed at the beginning on each of the periods presented, and should not be taken as indicative of the Company’s future consolidated results of operations or financial condition. December 31, December 31 Unaudited 2016 2015 Revenue $ 73,828 $ 80,698 Net earnings attributable to IntriCon Shareholders (4,749) 955 Net earnings per share Basic $ (0.73) $ 0.16 Diluted $ (0.73) $ 0.15 The Company believes the above historical pro forma results are not indicative o f what future results of IntriCon UK and Hearing Help Express could be due to both companies being purchased out of bankruptcy and due to the many usual and infrequent charges that occurred for both of these companies during the periods noted above. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting, Geographic And Customer Information [Abstract] | |
Segment Reporting | 5 . SEGMENT REPORTING The Company currently operates in two reportable segments: body-worn devices an d hearing health direct to consumer. The nature of distribution and services has been deemed separately identifiable . Therefore, segment reporting has been applied . Income (loss) from operations is total revenues less cost of sales and operating expenses. Identifiable assets by industry segment include assets directly identifiable with those operations. The accounting policies applied to determine segment information are the same as those described in the summary of significant accounting policies. The Company evaluates the performance of each segment based on income and loss from operations before income taxes. The following table summarizes data by industry segment: At and for the Year Ended December 31, 2017 Body Worn Devices Hearing Health Direct-to-Consumer Total Revenue, net $ 81,818 $ 6,492 $ 88,310 Income (loss) from continuing operations 2,347 (1,191) 1,156 Identifiable assets (excluding goodwill) 36,651 5,725 42,376 Goodwill 9,551 1,257 10,808 Depreciation and amortization 1,982 212 2,194 Capital expenditures 2,158 155 2,313 At and for the Year Ended December 31, 2016 Body Worn Devices Hearing Health Direct-to-Consumer Total Revenue, net $ 66,984 $ 1,025 $ 68,009 Loss from continuing operations (2,957) (17) (2,974) Identifiable assets (excluding goodwill) 29,048 4,155 33,203 Goodwill 9,551 1,004 10,555 Depreciation and amortization 2,041 - 2,041 Capital expenditures 1,766 - 1,766 |
Geographic And Customer Informa
Geographic And Customer Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting, Geographic And Customer Information [Abstract] | |
Geographic And Customer Information | 6. GEOGRAPHIC AND CUSTOMER 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, 201 7 and 201 6 is set forth below: Long-lived Assets , Net December 31, December 31, 2017 2016 United States $ 5,407 $ 4,640 Singapore 1,254 1,413 Other – primarily United Kingdom and Indonesia 514 553 Consolidated $ 7,175 $ 6,606 Long-lived assets consist of property and equipment. Excluded from long-lived assets are investments in partnerships , patents, license agreements, intangible assets 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 2017 2016 2015 United States $ 70,746 $ 47,460 $ 49,687 Europe 9,249 11,019 6,634 Asia 7,477 8,187 10,901 All other countries 838 1,343 1,305 Consolidated $ 88,310 $ 68,009 $ 68,527 Geographic net sales are allocated based on the location of the customer. Customer Information One customer accounted for 48 percent , 40 percent and 43 percent of the Company’s consolidated net sales in 201 7 , 201 6 and 201 5 , respectively. During 201 7 , 201 6 and 201 5 , the top five customers accounted for approximately 63 percent, 59 percent and 61 percent of the Company’s consolidated net sales, respectively. At December 31, 2017, two customers accounted for a combined 33 percent of the Company’s consolidated accounts receivable. Two customers accounted for a combined 31 percent of the Company’s consolidated accounts receivable at December 31, 201 6 . |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill | 7 . GOODWILL The Company performed its annual goodwill impairment test as of November 30 th for each of the years ended December 31, 201 7 , 201 6 and 201 5 . The changes in the carrying amount of goodwill for the years presented are as follows: Carrying amount at December 31, 2014 $ 9,194 Acquisition of assets of PC Werth (Note 4) 357 Carrying amount at December 31, 2015 9,551 Acquisition of equity interest of Hearing Help Express (Note 4) 1,004 Carrying amount at December 31, 2016 10,555 Adjustments 253 Carrying amount at December 31, 2017 $ 10,808 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets [Abstract] | |
Intangible Assets | 8. INTANGIBLE ASSETS Intangible assets consisted of the following: December 31, December 31, 2017 2016 Trademark $ 1,370 $ 1,370 Customer List 1,550 1,550 Accumulated amortization (180) - Total, net of accumulated amortization $ 2,740 $ 2,920 The d efinite-lived intangible assets consist of various acquired Hearing Help Express trademarks and customer relationship s. The asset life of trademarks is 20 year s and the life of the customer list is 18 years. The annual amortization expense for the trademark and customer list will approximate $155 for the next five years. 8. |
Investment In Partnerships
Investment In Partnerships | 12 Months Ended |
Dec. 31, 2017 | |
Investment In Partnerships [Abstract] | |
Investment In Partnerships | 9 . INVESTMENT IN PARTNERSHIPS Investment in partnerships consisted of the following: December 31, December 31, 2017 2016 Investment in and cash advance for Soundperience $ 842 $ - Investment in Signison 498 - Other 276 146 Total $ 1,616 $ 146 The Company has an agreement to acquire a 49% ownership interest and a technology license in Soundperience for 1,500 Euros. As of December 31, 2017, the Company held a 16% ownership interest in Soundperience, whic h increase s to 49% upon the completion of certain milestones and payment of the purchase price for that equity. As of December 31, 2017, the Company had an investment in Soundperience of $1,415 , consisting of an equity investment, cash advance and license agreement . Soundperience is accounted for in the Company’s financial statements using the cost method. In January 2018, the Company closed on the additional 33% stake in Soundperience. The Company has included the technology license obtained in other assets. Upon obtaining 49% ownership in 2018, Soundperience will be accounted for in the Company’s financial statements using the equity method. The Company has a 50% stake in Signison as of December 31, 2017. Signison is accounted for in the Company’s financial statements using the equity method. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Inventories | 10 . INVENTORIES Inventories consisted of the following: Raw materials Work-in process Finished products and components Total December 31, 2017 Domestic $ 6,924 $ 1,791 $ 3,055 $ 11,770 Foreign 2,258 514 855 3,627 Total $ 9,182 $ 2,305 $ 3,910 $ 15,397 December 31, 2016 Domestic $ 5,731 $ 1,324 $ 2,609 $ 9,664 Foreign 1,751 284 644 2,679 Total $ 7,482 $ 1,608 $ 3,253 $ 12,343 |
Short And Long-Term Debt
Short And Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Short And Long-Term Debt [Abstract] | |
Short And Long-Term Debt | 1 1 . SHORT AND LONG-TERM DEBT Short and long-term debt at December 31, 2017 and 2016 was as follows: December 31, 2017 December 31, 2016 Domestic asset-based revolving credit facility $ 4,000 $ 3,218 Capital expenditure loan facility - - Note payable - 2,000 Foreign overdraft and letter of credit facility 1,250 1,243 Domestic term loan 6,250 5,250 Unamortized finance costs (139) (81) Total debt 11,361 11,630 Less: Current maturities (2,040) (2,346) Total long-term debt $ 9,321 $ 9,284 Payments Due by Year 2018 2019 2020 2021 2022 Thereafter Total Domestic credit facility $ - $ - $ $ - $ 4,000 $ - $ 4,000 Domestic term loan 1,000 1,000 1,000 1,000 2,250 - 6,250 Foreign overdraft and letter of credit facility 1,040 210 - - - - 1,250 Total debt $ 2,040 $ 1,210 $ 1,000 $ 1,000 $ 6,250 $ - $ 11,500 Domestic Credit Facilities The Company and its domestic subsidiaries are parties to a credit facility with CIBC Bank USA (formerly known as The PrivateBank and Trust Company ) . The credit facility, as amended through December 31, 2017, provides for: § a $9,000 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 $2.5 million capital expenditure loan facility under which the Company at its election, can draw up to $2.5 million for qualifying capital expenditure expenditures over the next twelve months, with monthly amortization commencing after such time; § a term loan in the original amount of $6,500 . In December 2017, the Company and its domestic subsidiaries entered into an Eleventh Amendment to the Loan and Security Agreement and Waiver with CIBC Bank USA (formerly known as The PrivateBank and Trust Company ) . The amendment, among other things: § extended the maturity of the credit facilities from February 2019 to December 2022; § i ncreased the term loan to $6,500 from its then current balance of $4,500 ; § raised the inventory cap on the borrowing base from $4,000 to $4,500 . Under the revolving credit facility as amended, the availability of funds depends on a borrowing based composed of stated percentages of the Company’s eligible trade receivables and inventory, less a reserve; § increased the annual capital expenditure allowed under the facilities from its then current limit of $4,500 to $5,500 for the fiscal year ending December 31, 2018 and in any fiscal year thereafter; and, § added a $2.5 million capital expenditure loan facility under which the Company at its election, can draw up to $2.5 million for qualifying capital expenditures over the next twelve months, with monthly amortization commencing after such time. 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. As of December 31, 2017, there were no borrowings under the capital expenditure loan facility. 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% to 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 (0.25)% to 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 5.51% , 4.36% , and 3.68% for 2017, 2016, and 2015, respectively. The outstanding balance of the revolving credit facility was $4,000 and $3,218 at December 31, 2017 and 2016, respectively. The total remaining availability on the revolving credit facility was approximately $5,000 and $5,121 at December 31, 2017 and 2016, 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 December 15, 2022. 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 borrowers are subject to various covenants under the credit facility, including a maximum funded debt to EBITDA, a minimum fixed charge coverage ratio and maximum capital expenditure financial covenants. Under the credit facility, except as otherwise permitted, the borrowers may not, among other things: incur or permit to exist any indebtedness; grant or permit to exist any liens or security interests on their assets or pledge the stock of any subsidiary; make investments; be a party to any merger or consolidation, or purchase of all or substantially all of the assets or equity of any other entity; sell, transfer, convey or lease all or any substantial part of its assets or capital securities; sell or assign, with or without recourse, any receivables; issue any capital securities; make any distribution or dividend (other than stock dividends), whether in cash or otherwise, to any of its equity holders; purchase or redeem any of its equity interests or any warrants, options or other rights to equity; enter into any transaction with any of its affiliates or with any director, officer or employee of any borrower; be a party to any unconditional purchase obligations; cancel any claim or debt owing to it; make payment on or changes to any subordinated debt; enter into any agreement inconsistent with the provisions of the credit facility or other agreements and documents entered into in connection with the credit facility; engage in any line of business other than the businesses engaged in on the date of the credit facility and businesses reasonably related thereto; or permit its charter, bylaws or other organizational documents to be amended or modified in any way which could reasonably be expected to materially adversely affect the interests of the lender. The Company was in compliance with all applicable covenants under the credit facility as of December 31, 2017. During 2014, the Company entered into interest rate swaps with The PrivateBank (now CIBC Bank USA) 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. The interest rate swaps fix the Company's one month LIBOR interest rate on the notional amounts at rates ranging from 0.80% - 1.45% . We hold a right to cancel the interest rate swaps starting August 31, 2016. Interest rate swaps, which are considered derivative instruments, of ($8) and $19 are reported in the consolidated balance sheets at fair value in other current liabilities at December 31, 2017 and 2016. The debt issuance costs are being amortized over the related term utilizing the effective interest method and are included in interest expense and long-term debt and are being amortized over their estimated useful life on a straight-line basis. Debt issuance cost included in interest expense was $80 , $57 and $72 for the years ended December 31, 2017, 2016, and 2015, respectively 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 3.87% , 3.50% and 3.37% for the years ended December 31, 2017, 2016 and 2015. The outstanding balance was $1,250 and $1,243 at December 31, 2017 and 2016 , 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 $545 and $455 at December 31, 2017 and 2016, respectively. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | 12 . OTHER ACCRUED LIABILITIES Other accrued liabilities at December 31: 2017 2016 Accrued professional fees $ 64 $ 63 Pension 93 93 Postretirement benefit obligation 78 103 Deferred revenue - direct to consumer 1,336 614 Other 1,653 1,041 $ 3,224 $ 1,914 |
Domestic And Foreign Income Tax
Domestic And Foreign Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Domestic And Foreign Income Taxes [Abstract] | |
Domestic And Foreign Income Taxes | 13. DOMESTIC AND FOREIGN INCOME TAXES Domestic and foreign income taxes (benefits) were comprised as follows: Year Ended December 31 2017 2016 2015 Current Federal $ 129 $ 62 $ - State 17 13 - Foreign 211 178 27 Total Current $ 357 $ 253 $ 27 Deferred Federal (126) (26) - State - - - Foreign (223) (10) (8) Income Tax Expense $ 8 $ 217 $ 19 Income (loss) from continuing operations before income taxes and discontinued operations Foreign (342) 661 1,792 Domestic 1,506 (3,418) 1,309 $ 1,164 $ (2,757) $ 3,101 The following is a reconciliation of the statutory federal income tax rate to the effective tax rate based on income (loss): Year Ended December 31 2017 2016 2015 Tax provision at statutory rate 34.00 % 34.00 % 34.00 % Change in valuation allowance (502.26) (46.42) (20.08) Impact of permanent items, including stock based compensation expense 19.62 (7.93) (21.33) Effect of foreign tax rates 7.04 2.49 7.82 State taxes net of federal benefit 8.03 5.05 1.92 Effect of dividend of foreign subsidiary in prior year 74.41 (3.85) 5.18 Prior year provision to return true-up 48.21 10.60 (6.70) Non-controlling interest 2.08 (1.77) 1.22 Change in expected future rate 331.39 - - Other (21.83) (0.03) (1.40) Domestic and foreign income tax rate 0.69 % (7.86) % 0.63 % The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2017, and 2016 are presented below: Year Ended December 31 2017 2016 Deferred tax assets: Net operating loss carry forwards and credits $ 6,048 $ 12,043 Inventory 558 650 Compensation accruals 1,083 1,447 Accruals and reserves 108 89 Credits 387 251 Other 757 459 Total Deferred tax assets 8,941 14,939 Less: valuation allowance (7,407) (13,253) Deferred tax assets net of valuation allowance $ 1,534 $ 1,686 Deferred tax liabilities Depreciation and amortization (1,117) (1,424) Undistributed earnings of foreign subsidiary - (194) Total deferred tax liabilities (1,117) (1,618) Net deferred tax $ 417 $ 68 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 $5,846 , (3,443) , and $(291) for the years ended December 31, 2017, 2016, and 2015, respectively. For tax reporting purposes, the Company has actual federal and state net operating loss carryforwards of $23,725 and $9,374 , respectively. These net operating loss carryforwards begin to expire in 2022 for federal tax purposes and began to expire in 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. 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, 2017, 2016 and 2015. 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 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, 2017 and 2016 , the Company has no amounts accrued for the payment of interest and penalties. New Tax Legislation On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act of 2017 (“TCJA”) tax reform legislation. This legislation makes significant change in U.S. tax law including a reduction in the corporate tax rates, changes to net operating loss carryforwards and carrybacks, and a repeal of the corporate alternative minimum tax. The legislation reduced the U.S. corporate tax rate from the current rate of 35% to 21% . As a result of the enacted law, the Company was required to revalue deferred tax assets and liability at the enacted rate. This revaluation didn’t have any income tax expense impact due to the full valuation allowance. The other provisions of the T CJA did not have a material impact on the 2017 consolidated financial statements. Prior to 2017, the Company asserted that it intended to be permanently reinvested with respect to its cumulative undistributed earnings in its non-US subsidiaries with exception of its German subsidiary. With the enactment of the TCJ A and changes in the US Federal taxation of non-US dividend distributions, the Company is no longer permanently reinvested with respect to their cumulative undistributed earnings in its foreign subsidiaries. The net accumulated earnings and profits of the Company’s foreign subsidiaries through December 31, 2017 will be taxed according to IRC §965. Such income will be included in gross income under §951(a) and become previously taxed income. This previously taxed income will not be subject to US income tax upon distribution to the Company ; however, local withholding tax will still apply. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 14. EMPLOYEE BENEFIT PLANS The Company has a defined contribution plan 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 $445 , $212 and $341 for the years ended December 31, 2017, 2016 and 2015 . 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. The following table presents the amounts recognized in the Company’s consolidated balance sheets at December 31, 201 7 and 201 6 for post-retirement medical benefits: 2017 2016 Change in Projected Benefit Obligation: Projected benefit obligation at January 1 $ 604 $ 645 Interest cost 19 27 Actuarial loss (7) 24 Participant contributions 15 23 Benefits paid (98) (115) Projected benefit obligation at December 31 533 604 Change in fair value of plan assets: Employer contributions 83 92 Participant contributions 15 23 Benefits paid (98) (115) Funded status (533) (604) Current liabilities 78 103 Noncurrent liabilities 455 501 Net amount recognized 533 604 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, 201 7 and 201 6 . Net periodic post-retirement medical benefit costs for 201 7 , 201 6 , and 201 5 included the following components: For measurement purposes, a 5.8 % annual rate of increase in the per capita cost of covered benefits (i.e., health care cost trend rate) was assumed for 201 7 ; the rate was assumed to decrease gradually to 4.6 % by the year 2066 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. The assumptions used for the years ended December 31 were as follows: 2017 2016 2015 Annual increase in cost of benefits 5.8 % 5.9 % 7.0 % Discount rate used to determine year-end obligations 3.3 % 3.3 % 4.5 % Discount rate used to determine year-end expense 3.3 % 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, 201 7 and 201 6 are illustrated below. 2017 2016 Current portion $ 93 $ 93 Long-term portion 772 737 Total liability at December 31 $ 865 $ 830 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 %. Employer benefit payments (medical and pension), which reflect expected future service, are expected to be paid in the following years : 2018 $ 198 2019 186 2020 174 2021 164 2022 153 Years 2023-2027 523 |
Currency Translation And Transa
Currency Translation And Transaction Adjustments | 12 Months Ended |
Dec. 31, 2017 | |
Currency Translation And Transaction Adjustments [Abstract] | |
Currency Translation And Transaction Adjustments | 1 5 . 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 losses of $89 , $128 and $40 in 201 7 , 201 6 and 201 5 , respectively. |
Common Stock And Stock Options
Common Stock And Stock Options | 12 Months Ended |
Dec. 31, 2017 | |
Common Stock And Stock Options [Abstract] | |
Common Stock And Stock Options | 16 . 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, 201 7 . 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 plans, executives, employees and outside directors receive awards of options to purchase common stock. T he 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, 2017 . 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 shar es rather than cash. No shares were issued und er the director program for any of the years ended December 31, 201 7 , 201 6 and 201 5 . 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 were no shares purchased under the program during the years ended December 31, 201 7, 2016 and 2015. Stock option activity during the periods indicated is as follows: Weighted-average Aggregate Number of Shares Exercise Price Intrinsic Value 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 Options forfeited or cancelled (70) 5.75 Options granted 192 7.11 Options exercised (61) 5.22 Outstanding at December 31, 2016 1,385 6.54 Options forfeited or cancelled (15) 12.42 Options granted 303 7.28 Options exercised (220) 10.67 Outstanding at December 31, 2017 1,453 $ 5.95 $ 19,000 Exercisable at December 31, 2016 1,025 $ 6.45 $ 1,615 Exercisable at December 31, 2017 970 $ 5.42 $ 13,958 Available for future grant at December 31, 2017 251 The number of shares available for future grant at December 31, 2017, does not include a total of up to 925 shares subject to options outstanding under the 2006 plan which will become available for grant under the 2015 Equity Incentive Plan in the event of the expiration of such options. The weighte d-average remaining contractual term of options exercisable and options outstanding at December 31, 2017 was 4.37 and 5.59 year s . The total intrinsic value of options exercised du ring fiscal 2017, 2016 and 2015, was $631 , $76 and $630 , respectively . The weighted-average per share grant date fair value of options granted was $4.20 , $4.17 and $4.50 , in 2017, 2016 and 2015, 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: 2017 2016 2015 Dividend yield 0.0 % 0.0 % 0.0 % Expected volatility 59.29 - 63.51 % 61.66 - 66.45 % 65.15 - 72.81 % Risk-free interest rate 1.87 -2.16 % 1.36 -2.00 % 1.42 -1.88 % 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 zero percent forfeiture rate for stock options and regularly reviews this estimate. There were no material forfeitures during fiscal years 2017, 2016 and 2015. 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 $ 844 , $ 685 , and $ 579 of non-cash stock option expense for the years ended December 31, 201 7 , 201 6 and 201 5 , respectively. There were 189 stock options that were exercised using a cashless method of exercise for the year ended December 31, 2017. As of December 31, 201 7 , there was $ 995 of total non-cash stock option expense related to non-vested awards that is expected to be recognized over a weighted-average period of 1.81 years. The Company also has an Employee Stock Purchase Plan (the “Purchase Plan”). The Purchase Plan, as amended, provides that a maximum of 300 shares may be sold under the Purchase Plan. There were 11 , 18 , and 14 shares purchased under the Purchase P lan during the years ended December 31, 201 7 , 201 6 and 201 5 , respectively. On May 18, 2016, the Company completed a public offering and sale of 805 shares of common stock. The net proceeds from this offering, after deducting underwriting discounts and offering expenses, totaled approximately $3,678 and were used for working capital and general corporate purposes. |
Income (Loss) Per Share
Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Income (Loss) Per Share [Abstract] | |
Income (Loss) Per Share | 1 7 . INCOME (LOSS) PER SHARE The following table sets forth the computation of basic and diluted income (loss) per share: Year Ended December 31 2017 2016 2015 Numerator: Income (loss) from continuing operations before discontinued operations $ 1,156 $ (2,974) $ 3,082 Loss from discontinued operations, net of income taxes (128) (1,770) (965) Loss on sale of discontinued operations (164) Net income (loss) 864 (4,744) 2,117 Less: Loss allocated to non-controlling interest (938) (157) (111) Net Income (loss) attributable to shareholders $ 1,802 $ (4,587) $ 2,228 Denominator: Basic – weighted shares outstanding 6,852 6,497 5,907 Weighted shares assumed upon exercise of stock options 455 - 334 Diluted – weighted shares outstanding 7,307 6,497 6,241 Basic income (loss) per share attributable to shareholders: Continuing operations $ 0.31 $ (0.43) $ 0.54 Discontinued operations (0.04) (0.27) (0.16) Net income (loss) per share: $ 0.26 $ (0.71) $ 0.38 Diluted income (loss) per share attributable to shareholders: Continuing operations $ 0.29 $ (0.43) $ 0.51 Discontinued operations (0.04) (0.27) (0.15) Net income (loss) per share: $ 0.25 $ (0.71) $ 0.36 The Company excluded all stock options , including 37 in the money options, in 2016 from the computation of the diluted income per share because their effect would have been anti-dilutive due to the Company’s net loss in the period. The Company excluded in the money stock options of 28 and 71 in 2017 and 2015, respectively, from the computation of the diluted income per share because their effect would be anti-dilutive. For additional disclosures regarding the stock options, see Note 1 6 . |
Contigencies And Commitments
Contigencies And Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Contigencies And Commitments [Abstract] | |
Contigencies And Commitments | 1 8 . 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 aggregating approximately $468 . The Company is also involved from time to time 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 201 7 , 201 6 and 201 5 under leases pertaining primarily to engineering, manufacturing, sales and administrative facilities, with an initial term of one year or more, aggregated $ 1,728 , $ 1,498 , and $ 1,265 , respectively. Remaining payments under such leases are as follows: 2018- $ 1,647 ; 2019- $1,674 ; 2020 - $1,586 ; 2021 - $1,135 ; 2022 - $444 , which includes two leased facility in Minnesota, both that expires in 2022 , one leased facility in Illinois that expires in 2022, one leased facility in Singapore that expires in 2020, one leased facility in Indonesia that expires in 2021, one leased facility in the United Kingdom that expires in 2021, and one leased facility in Germany that expires in 2022. Certain leases contain renewal options as provided 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 eleven 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, 2017 | |
Related-Party Transactions [Abstract] | |
Related-Party Transactions | 1 9 . RELATED-PARTY TRANSACTIONS One of the Company’s subsidiaries leased office and factory space from a partnership consisting of one present and two 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 was required to pay all real estate taxes and operating expenses. The partnership sold the property to an unaffiliated third party on October 13, 2017. The total base rent expense, real estate taxes and other charges incurred under the lease was approximately $371 , $484 and $487 for the years ended December 31, 2017 (through October 13, 2017), 2016 and 2015, 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 $140 , $406 , and $203 to Blank Rome LLP for legal services and costs in 201 7 , 201 6 and 201 5 , respectively. The Company has a 50% ownership in Signison, which is a German based hearing health company. Signison owes the Company a note receivable balance of $463 as of December 31, 2017. |
Statements Of Cash Flows
Statements Of Cash Flows | 12 Months Ended |
Dec. 31, 2017 | |
Statements Of Cash Flows [Abstract] | |
Statements Of Cash Flows | 20 . STATEMENTS OF CASH FLOWS Supplemental disclosures of cash flow information: Year Ended December 31 2017 2016 2015 Interest received $ 1 $ 1 $ 1 Interest paid 716 568 437 Income taxes paid 166 196 263 Noncash Transactions: 2017 2016 2015 NXP technology access $ 2,732 $ - $ - NXP long-term liability 2,600 - - |
Revenue By Market
Revenue By Market | 12 Months Ended |
Dec. 31, 2017 | |
Revenue By Market [Abstract] | |
Revenue By Market | 21 . REVENUE BY MARKET The following table set s forth, for the periods indicated, net revenue by market: Year Ended December 31 2017 2016 2015 Medical $ 52,336 $ 37,602 $ 39,609 Hearing Health 23,316 21,882 21,089 Hearing Health Direct-to-Consumer 6,492 1,025 - Professional Audio Communications 6,166 7,500 7,829 Total Net Sales $ 88,310 $ 68,009 $ 68,527 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. SUBSEQUENT EVENTS On March 7 , 2018 IntriCon entered into a lease for an additional 30,000 square feet of manufacturing floor space near its existing Arden Hills location in Minnesota, to accommodate robotic assembly of medical components and systems. The lease commences on May 1 , 2018 and runs for a term just over f ive years, expiring August 2025 . After a four mo n th rent abatement period, annual base rent will approximate $250 for the first full year and is subject to 2.5% annual rent escalation. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2017 | |
Summary Of Significany Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation – In December 2016, the Company’s board of directors approved plans to discontinue its cardiac diagnostic monitoring business. The Company sold the cardiac diagnostic monitoring business on February 17, 2017 to Datrix LLC. 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 Note 2. |
Consolidation | Consolidation – The consolidated financial statements include the accounts of the Company and its consolidated 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. |
Discontinued Operations | Discontinued Operations – The Company records discontinued operations when the disposal of separately identified business unit constitutes a significant strategic shift in the Company’s operations. |
Non-Controlling Interests | Non-Controlling Interests – The Company owns 50 percent of earVenture and owned 20 percent of Hearing Help Express, Inc. (“Hearing Help Express” or HHE”) from October 2016 until December 2017, when it acquired the 80 percent noncontrolling interest of HHE. See further information at Note 4. The Company has consolidated the results of earVenture and HHE for all periods presented based on the Company’s ability to control the operations of the entities and the likelihood that the Company bears the largest risk and reward of their financial results. The Company allocates profits and losses according to ownership percentages, unless contractual agreements expressly dictate otherwise. In addition, profit or loss on downstream eliminated transactions are attributable to the Company. 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 attributed to the controlling interest. Changes 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 has determined that the Company operates in two reportable segments, our body-worn device segment and our direct to consumer hearing health segment, as further described in Note 5. |
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 – For its body-worn device segment, 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. For its direct to consumer segment, the Company recognizes revenue for hearing aids after the customer trial period has ended (generally 60 days from shipment). Body-worn device segment customers have 30 days to notify the Company if the product is damaged or defective. There are no other 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 and 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. An allowance for doubtful accounts is established based on factors surrounding the credit risk of specific customers, historical trends and other information. The allowance for doubtful accounts balance was $332 and $170 as of December 31, 2017 and 2016, respectively. |
Inventories | Inventories – Inventories are stated at the lower of cost or market. The cost of the inventories is 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 $ 1,739 , $ 1,870 and $1,524 for the years ended December 31, 2017, 2016, and 2015, respectively. |
Intangible Assets | Intangible Assets – Definite-lived intangible assets consist of various acquired Hearing Help Express trademarks and customer relationships which are amortized over eighteen to twenty years. |
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, other assets 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, 2017, 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 may apply a qualitative assessment to determine if it is more likely than not that goodwill is impaired. If a reporting unit does not pass the qualitative assessment , or the Company choses to skip the assessment, it performs a test comparing fair value of a reporting unit to its carrying value. The Company would need to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The Company has concluded that no impairment of goodwill or intangible assets occurred within continuing operations during the years ended December 31, 2017, 2016 and 2015. |
Other Assets, Net | Other assets, net – The principal amounts included in other assets, net are technology related assets, of which, $2,732 relates to technology access with NXP Semiconductors. The Company capitalizes costs of acquired technology which provide a future economic benefit. Amortization expense was $ 455, $ 159 and $ 231 for the years ended December 31, 2017, 2016, and 2015 , respectively. |
Investments In Partnerships | Investment in partnerships – Certain of the Company’s investments in equity securities are long-term, strategic investments in companies. Depending on whether the Company has significant influence over the entity, the Company accounts for these investments under the cost or 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. If payment for an investment exceeds the underlying book value of the investment , the Company allocates the difference to the fair value of the investment assets and to goodwill; and records related amortization of those assets within the equity investment balance and related equity in income (loss) of the investment. 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. |
Other Long-term Liabilities | Other long-term liabilities – The principal amounts included in other long-term liabilities, are amounts owed to NXP to gain access to their technology and other items. Currently, the Company owes NXP $2,600 which is due as purchases are made, but no later than December 20, 2019. The parties have agreed to review and extend the payment date if warranted. |
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 Company recognizes accrued interest and penalties related to uncertain tax positions in income tax expense. At December 31, 2017 and 2016, 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 2009-2016. |
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 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. 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, based on the Black-Scholes model, of stock options and awards ratably over the vesting period of the related share-based award. |
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 amounted to $1,696 , $190 , and $0 in 2017, 2016 and 2015, respectively, and are charged to expense when incurred. |
Research And Development Costs | Research and Development Costs – Research and development costs, net of customer funding, amounted to $ 4,458 , $ 4,688 , and $ 4, 279 in 2017, 2016 and 2015, 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. |
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 $ 95 , $ 102 and $ 121 for the years ended December 31, 2017, 2016 and 2015, 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 The Company has determined the impact of this pronouncement on its consolidated financial statements and related disclosures to be immaterial. The Company has determined the impact of this pronouncement on its consolidated financial statements and related disclosures to be immaterial. The Company implemented this ASU in 2016 which had an immaterial effect. The Company has determined the impact of this pronouncement on its consolidated financial statements and related disclosures to be immaterial. The Company has established a timeline related to the implementation of the standard and believes the timeline is sufficient to implement the new standard. We are currently assessing the impact on the Company’s consolidated financial statements. In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-07, Retirement Benefits – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This guidance requires entities to present the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the income statement line items where they report compensation cost. Entities will present all other components of net benefit cost outside operating income, if this subtotal is presented. The rules related to the timing of when costs are recognized or how they are measured have not changed. This amendment only impacts where those costs are reflected within the income statement. In addition, only the service cost component will be eligible for capitalization in inventory and other assets. This guidance becomes effective January 1, 2018. Early adoption is permitted. The Company does not anticipate that the adoption of this new standard will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04 “Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This new standard simplifies the accounting for goodwill impairments by eliminating step 2 from the goodwill impairment test. The amendments in this update are effective for annual impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for goodwill impairment tests performed on or after January 1, 2017. The Company elected to adopt this new standard in 2017 and the adoption of this new standard did not have a material impact on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, a consensus of the FASB’s Emerging Issues Task Force (the “Task Force”). The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. This update is effective for years beginning after December 31, 2018. The Company has restricted cash balances and anticipates that the adoption of this new standard will change the cash amounts and financing activities on its statement of cash flows on its consolidated financial statements. The Company is currently evaluating the effect this new standard will have on the Company’s consolidated financial statements. In February 2016, the FASB issued its final standard on accounting for leases. This standard, issued as ASU 2016-02, requires that an entity that is a lessee recognize lease assets and lease liabilities on the balance sheet for all leases and disclose key information about leasing arrangements. This update is effective for financial statement periods beginning after December 15, 2018, with earlier application permitted. The Company has not yet determined the impact of this pronouncement on its consolidated financial statements and related disclosures but anticipates it will be required to record additional lease liabilities and corresponding right s to use assets. In May 2014, the FASB issued guidance creating ASC Section 606, “Revenue from Contracts with Customers”, which establishes a comprehensive new model for the recognition of revenue from contracts with customers. This model is based on the core principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company has performed a review of the requirements of the new guidance and has identified which of its contracts will be within the scope of ASC 606. The Company has applied the five-step model of the new standard to a selection of contracts within each of its revenue streams and has compared the results to its current accounting practices. Based on this analysis, the adoption of ASC 606 will likely have a material impact on the Company’s consolidated financial statements by accelerating revenue recognition for some revenue streams. The Company will provide expanded disclosures as a result of the adoption. The Company will adopt the new standard effective January 1, 2018 using the full retrospective transition method of adoption. The Company has assessed and anticipates that there will be additional processes and internal controls to support recognition and disclosure of ASC 606. In the first quarter of 2018, the Company will be revising its revenue recognition accounting policy and expanding revenue disclosures to reflect the requirements of ASC 606, which include disclosures related to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required under the standard regarding customer contracts, significant judgements and assets recognized from the costs to obtain or fulfill a contract. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 Accounts Receivable $ 123 $ - $ - $ 175 $ 52 Inventory - - - 726 726 Other Assets - - - 18 18 |
Cardiac Diagnostic Monitoring Business [Member] | |
Summary Of Balance Sheet And Results Of Discontinued Operations | The following table shows the cardiac diagnostic monitoring business balance sheets as of December 31, 2017 and 2016: December 31, December 31, 2017 2016 Accounts receivable, net $ - $ 123 Current assets of discontinued operations $ - $ 123 Accounts payable - 22 Accrued compensation and other liabilities - 101 Current liabilities of discontinued operations $ - $ 123 The following table shows the results of the cardiac diagnostic monitoring discontinued operations: Year Ended December 31, December 31, December 31, 2017 2016 2015 Sales, net $ 140 $ 1,161 $ 1,212 Operating costs and expenses (268) (2,135) (2,177) Loss on impairment - (796) - Net loss from discontinued operations (128) (1,770) (965) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary Of Unaudited Supplemental Pro Forma Information | December 31, December 31 Unaudited 2016 2015 Revenue $ 73,828 $ 80,698 Net earnings attributable to IntriCon Shareholders (4,749) 955 Net earnings per share Basic $ (0.73) $ 0.16 Diluted $ (0.73) $ 0.15 |
Hearing Help Express (HHE) [Member] | |
Schedule Of Business Acquisition Purchase Price | Cash $ 157 Inventory 341 Accounts Receivable 333 Property, Plant and Equipment 9 Intangible Assets 2,920 Goodwill 1,257 Other Assets 500 Note Payable (2,000) Deferred Revenue (717) IRS Note (461) Non-Controlling Interest (650) Other Payables (996) $ 693 |
PC Werth Ltd [Member] | |
Schedule Of Business Acquisition Purchase Price | Inventory $ 155 Property, Plant and Equipment 39 Intellectual Property 39 Goodwill 357 Payables (393) $ 197 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting, Geographic And Customer Information [Abstract] | |
Summary Of Data By Industry Segment | At and for the Year Ended December 31, 2017 Body Worn Devices Hearing Health Direct-to-Consumer Total Revenue, net $ 81,818 $ 6,492 $ 88,310 Income (loss) from continuing operations 2,347 (1,191) 1,156 Identifiable assets (excluding goodwill) 36,651 5,725 42,376 Goodwill 9,551 1,257 10,808 Depreciation and amortization 1,982 212 2,194 Capital expenditures 2,158 155 2,313 At and for the Year Ended December 31, 2016 Body Worn Devices Hearing Health Direct-to-Consumer Total Revenue, net $ 66,984 $ 1,025 $ 68,009 Loss from continuing operations (2,957) (17) (2,974) Identifiable assets (excluding goodwill) 29,048 4,155 33,203 Goodwill 9,551 1,004 10,555 Depreciation and amortization 2,041 - 2,041 Capital expenditures 1,766 - 1,766 |
Geographic And Customer Infor35
Geographic And Customer Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting, Geographic And Customer Information [Abstract] | |
Geographical Distribution Of Long-Lived Assets, Net | December 31, December 31, 2017 2016 United States $ 5,407 $ 4,640 Singapore 1,254 1,413 Other – primarily United Kingdom and Indonesia 514 553 Consolidated $ 7,175 $ 6,606 |
Geographical Distribution Of Net Sales | Year Ended December 31 Net Sales to Geographical Areas 2017 2016 2015 United States $ 70,746 $ 47,460 $ 49,687 Europe 9,249 11,019 6,634 Asia 7,477 8,187 10,901 All other countries 838 1,343 1,305 Consolidated $ 88,310 $ 68,009 $ 68,527 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets [Abstract] | |
Schedule Of Goodwill | Carrying amount at December 31, 2014 $ 9,194 Acquisition of assets of PC Werth (Note 4) 357 Carrying amount at December 31, 2015 9,551 Acquisition of equity interest of Hearing Help Express (Note 4) 1,004 Carrying amount at December 31, 2016 10,555 Adjustments 253 Carrying amount at December 31, 2017 $ 10,808 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets [Abstract] | |
Schedule of Finite-Lived Intangible Assets | December 31, December 31, 2017 2016 Trademark $ 1,370 $ 1,370 Customer List 1,550 1,550 Accumulated amortization (180) - Total, net of accumulated amortization $ 2,740 $ 2,920 |
Investment In Partnerships (Tab
Investment In Partnerships (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investment In Partnerships [Abstract] | |
Investments in Partnerships | December 31, December 31, 2017 2016 Investment in and cash advance for Soundperience $ 842 $ - Investment in Signison 498 - Other 276 146 Total $ 1,616 $ 146 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Schedule Of Inventories | Raw materials Work-in process Finished products and components Total December 31, 2017 Domestic $ 6,924 $ 1,791 $ 3,055 $ 11,770 Foreign 2,258 514 855 3,627 Total $ 9,182 $ 2,305 $ 3,910 $ 15,397 December 31, 2016 Domestic $ 5,731 $ 1,324 $ 2,609 $ 9,664 Foreign 1,751 284 644 2,679 Total $ 7,482 $ 1,608 $ 3,253 $ 12,343 |
Short And Long-Term Debt (Table
Short And Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Short And Long-Term Debt [Abstract] | |
Summary Of Short And Long-Term Debt | December 31, 2017 December 31, 2016 Domestic asset-based revolving credit facility $ 4,000 $ 3,218 Capital expenditure loan facility - - Note payable - 2,000 Foreign overdraft and letter of credit facility 1,250 1,243 Domestic term loan 6,250 5,250 Unamortized finance costs (139) (81) Total debt 11,361 11,630 Less: Current maturities (2,040) (2,346) Total long-term debt $ 9,321 $ 9,284 |
Schedule of Payments Due By Year | Payments Due by Year 2018 2019 2020 2021 2022 Thereafter Total Domestic credit facility $ - $ - $ $ - $ 4,000 $ - $ 4,000 Domestic term loan 1,000 1,000 1,000 1,000 2,250 - 6,250 Foreign overdraft and letter of credit facility 1,040 210 - - - - 1,250 Total debt $ 2,040 $ 1,210 $ 1,000 $ 1,000 $ 6,250 $ - $ 11,500 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Accrued Liabilities [Abstract] | |
Components Of Other Accrued Liabilites | 2017 2016 Accrued professional fees $ 64 $ 63 Pension 93 93 Postretirement benefit obligation 78 103 Deferred revenue - direct to consumer 1,336 614 Other 1,653 1,041 $ 3,224 $ 1,914 |
Domestic And Foreign Income T42
Domestic And Foreign Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Domestic And Foreign Income Taxes [Abstract] | |
Domestic And Foreign Income Taxes (Benefits) | Year Ended December 31 2017 2016 2015 Current Federal $ 129 $ 62 $ - State 17 13 - Foreign 211 178 27 Total Current $ 357 $ 253 $ 27 Deferred Federal (126) (26) - State - - - Foreign (223) (10) (8) Income Tax Expense $ 8 $ 217 $ 19 Income (loss) from continuing operations before income taxes and discontinued operations Foreign (342) 661 1,792 Domestic 1,506 (3,418) 1,309 $ 1,164 $ (2,757) $ 3,101 |
Schedule Of Reconciliation Of The Statutory Federal Income Tax Rate To The Effective Tax Rate Based On Income (Loss) | Year Ended December 31 2017 2016 2015 Tax provision at statutory rate 34.00 % 34.00 % 34.00 % Change in valuation allowance (502.26) (46.42) (20.08) Impact of permanent items, including stock based compensation expense 19.62 (7.93) (21.33) Effect of foreign tax rates 7.04 2.49 7.82 State taxes net of federal benefit 8.03 5.05 1.92 Effect of dividend of foreign subsidiary in prior year 74.41 (3.85) 5.18 Prior year provision to return true-up 48.21 10.60 (6.70) Non-controlling interest 2.08 (1.77) 1.22 Change in expected future rate 331.39 - - Other (21.83) (0.03) (1.40) Domestic and foreign income tax rate 0.69 % (7.86) % 0.63 % |
Schedule of Deferred Tax Assets and Liabilities | Year Ended December 31 2017 2016 Deferred tax assets: Net operating loss carry forwards and credits $ 6,048 $ 12,043 Inventory 558 650 Compensation accruals 1,083 1,447 Accruals and reserves 108 89 Credits 387 251 Other 757 459 Total Deferred tax assets 8,941 14,939 Less: valuation allowance (7,407) (13,253) Deferred tax assets net of valuation allowance $ 1,534 $ 1,686 Deferred tax liabilities Depreciation and amortization (1,117) (1,424) Undistributed earnings of foreign subsidiary - (194) Total deferred tax liabilities (1,117) (1,618) Net deferred tax $ 417 $ 68 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefit Plans [Abstract] | |
Schedule Of Amounts Recognized In Consolidated Balance Sheets | 2017 2016 Change in Projected Benefit Obligation: Projected benefit obligation at January 1 $ 604 $ 645 Interest cost 19 27 Actuarial loss (7) 24 Participant contributions 15 23 Benefits paid (98) (115) Projected benefit obligation at December 31 533 604 Change in fair value of plan assets: Employer contributions 83 92 Participant contributions 15 23 Benefits paid (98) (115) Funded status (533) (604) Current liabilities 78 103 Noncurrent liabilities 455 501 Net amount recognized 533 604 Amount recognized in other comprehensive income - - Unrecognized net actuarial gain - - Total $ - $ - |
Schedule Of Assumptions Used | 2017 2016 2015 Annual increase in cost of benefits 5.8 % 5.9 % 7.0 % Discount rate used to determine year-end obligations 3.3 % 3.3 % 4.5 % Discount rate used to determine year-end expense 3.3 % 4.5 % 4.5 % |
Schedule Of Liabilities Recorded | 2017 2016 Current portion $ 93 $ 93 Long-term portion 772 737 Total liability at December 31 $ 865 $ 830 |
Schedule Of Expected Benefit Payments | 2018 $ 198 2019 186 2020 174 2021 164 2022 153 Years 2023-2027 523 |
Common Stock And Stock Options
Common Stock And Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Common Stock And Stock Options [Abstract] | |
Summary Of Stock Option Activity | Weighted-average Aggregate Number of Shares Exercise Price Intrinsic Value 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 Options forfeited or cancelled (70) 5.75 Options granted 192 7.11 Options exercised (61) 5.22 Outstanding at December 31, 2016 1,385 6.54 Options forfeited or cancelled (15) 12.42 Options granted 303 7.28 Options exercised (220) 10.67 Outstanding at December 31, 2017 1,453 $ 5.95 $ 19,000 Exercisable at December 31, 2016 1,025 $ 6.45 $ 1,615 Exercisable at December 31, 2017 970 $ 5.42 $ 13,958 Available for future grant at December 31, 2017 251 |
Schedule Of Weighted Average Assumptions | 2017 2016 2015 Dividend yield 0.0 % 0.0 % 0.0 % Expected volatility 59.29 - 63.51 % 61.66 - 66.45 % 65.15 - 72.81 % Risk-free interest rate 1.87 -2.16 % 1.36 -2.00 % 1.42 -1.88 % Expected life (years) 6.0 6.0 6.0 |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income (Loss) Per Share [Abstract] | |
Reconciliation Between Basic And Diluted Earnings Per Share | Year Ended December 31 2017 2016 2015 Numerator: Income (loss) from continuing operations before discontinued operations $ 1,156 $ (2,974) $ 3,082 Loss from discontinued operations, net of income taxes (128) (1,770) (965) Loss on sale of discontinued operations (164) Net income (loss) 864 (4,744) 2,117 Less: Loss allocated to non-controlling interest (938) (157) (111) Net Income (loss) attributable to shareholders $ 1,802 $ (4,587) $ 2,228 Denominator: Basic – weighted shares outstanding 6,852 6,497 5,907 Weighted shares assumed upon exercise of stock options 455 - 334 Diluted – weighted shares outstanding 7,307 6,497 6,241 Basic income (loss) per share attributable to shareholders: Continuing operations $ 0.31 $ (0.43) $ 0.54 Discontinued operations (0.04) (0.27) (0.16) Net income (loss) per share: $ 0.26 $ (0.71) $ 0.38 Diluted income (loss) per share attributable to shareholders: Continuing operations $ 0.29 $ (0.43) $ 0.51 Discontinued operations (0.04) (0.27) (0.15) Net income (loss) per share: $ 0.25 $ (0.71) $ 0.36 |
Statements Of Cash Flows (Table
Statements Of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Statements Of Cash Flows [Abstract] | |
Supplemental Disclosures Of Cash Flow Information | Year Ended December 31 2017 2016 2015 Interest received $ 1 $ 1 $ 1 Interest paid 716 568 437 Income taxes paid 166 196 263 Noncash Transactions: 2017 2016 2015 NXP technology access $ 2,732 $ - $ - NXP long-term liability 2,600 - - |
Revenue By Market (Tables)
Revenue By Market (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Revenue By Market [Abstract] | |
Schedule Of Net Revenue By Market | Year Ended December 31 2017 2016 2015 Medical $ 52,336 $ 37,602 $ 39,609 Hearing Health 23,316 21,882 21,089 Hearing Health Direct-to-Consumer 6,492 1,025 - Professional Audio Communications 6,166 7,500 7,829 Total Net Sales $ 88,310 $ 68,009 $ 68,527 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Significant Accounting Policies [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Revenue recognized after shipment because the customer has the right to return the product during this trial period phase, in days | 60 days | ||
Number of days for notification of product defect | 30 days | ||
Warranty term | 1 year | ||
Allowance for doubtful accounts | $ 332,000 | $ 170,000 | |
Depreciation expense | 1,739,000 | 1,870,000 | $ 1,524,000 |
Impairment of long-lived assets from continuing operations | 0 | ||
Impairment of goodwill or intangible assets | 0 | 0 | 0 |
Other assets, net | 3,835,000 | 1,557,000 | |
Other long-term liabilities | 3,172,000 | 707,000 | |
Amortization expense | 455,000 | 159,000 | $ 231,000 |
Tax related interest accrued | 0 | 0 | |
Tax interest or penalties recognized | $ 0 | $ 0 | |
Maximum term | 6 years | 6 years | 6 years |
Advertising costs | $ 1,696,000 | $ 190,000 | $ 0 |
Research and development | 4,458,000 | 4,688,000 | 4,279,000 |
NXP [Member] | |||
Significant Accounting Policies [Line Items] | |||
Other assets, net | 2,732,000 | ||
Other long-term liabilities | $ 2,600,000 | ||
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Acquired finite-lived intangible assets amortization period | 18 years | ||
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] | |||
Acquired finite-lived intangible assets amortization period | 20 years | ||
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% | ||
Hearing Help Express (HHE) [Member] | |||
Significant Accounting Policies [Line Items] | |||
Ownership percentage | 20.00% | ||
Acquisition of remaining percentage stake | 80.00% | ||
Customer Funded Tooling [Member] | |||
Significant Accounting Policies [Line Items] | |||
Research and development | $ 95,000 | $ 102,000 | $ 121,000 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Loss on sale of discontinued operations, net of income taxes | $ 164 | |
Cardiac Diagnostic Monitoring Business [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||
Loss on impairment | $ 796 |
Discontinued Operations (Schedu
Discontinued Operations (Schedule Of Discontinued Operations Balance Sheet) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Current assets of discontinued operations | $ 123 |
Current liabilities of discontinued operations | 123 |
Discontinued Operations, Disposed of by Sale [Member] | Cardiac Diagnostic Monitoring Business [Member] | |
Accounts receivable, net | 123 |
Current assets of discontinued operations | 123 |
Accounts payable | 22 |
Accrued compensation and other liabilities | 101 |
Current liabilities of discontinued operations | $ 123 |
Discontinued Operations (Summar
Discontinued Operations (Summary Of Results Of Discontinued Operations) (Details) - Cardiac Diagnostic Monitoring Business [Member] - Discontinued Operations, Disposed of by Sale [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Sales, net | $ 140 | $ 1,161 | $ 1,212 |
Operating costs and expenses | (268) | (2,135) | (2,177) |
Loss on impairment | (796) | ||
Net loss from discontinued operations | $ (128) | $ (1,770) | $ (965) |
Discontinued Operations (Sche52
Discontinued Operations (Schedule Of Disposal Groups Including Discontinued Operations Nonrecurring Fair Value Measurement) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Accounts Receivable [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | $ 52 |
Accounts Receivable [Member] | Fair Value As Of Measurement Date [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | 123 |
Inventory [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | 726 |
Inventory [Member] | Fair Value As Of Measurement Date [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | |
Other Assets [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | 18 |
Other Assets [Member] | Fair Value As Of Measurement Date [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] | 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] | Accounts Receivable [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | 175 |
Significant Unobservable Inputs (Level 3) [Member] | Inventory [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | 726 |
Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment Charge | $ 18 |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Restructuring charges | $ 132 |
IntriCon UK Limited Facility Moving Costs [Member] | |
Restructuring charges | $ 132 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Thousands | Nov. 03, 2015 | Oct. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Purchase price | $ 693 | ||||
Hearing Help Express (HHE) [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition date | Oct. 18, 2016 | ||||
Ownership percentage | 20.00% | ||||
Purchase price | $ 650 | ||||
Earn out | 1,800 | ||||
Recognized additional revenue | $ 1,025 | 6,492 | |||
Recognized losses | (3) | $ 324 | |||
Acquisition costs | $ 216 | ||||
Acquisition of remaining percentage stake | 80.00% | ||||
PC Werth Ltd [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition date | Nov. 3, 2015 | ||||
Purchase price | $ 197 | ||||
Assumed payables | $ 393 | ||||
Recognized additional revenue | $ 414 | ||||
Recognized losses | 265 | ||||
Acquisition costs | $ 143 | ||||
Additional Paid-In Capital [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocation of non-controlling interest at acquisition (Note 4) | $ (880) |
Acquisitions (Schedule Of Busin
Acquisitions (Schedule Of Business Acquisition Purchase Price) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 18, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 10,808 | $ 10,555 | $ 9,551 | $ 9,194 | |
Hearing Help Express (HHE) [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 157 | ||||
Inventory | 341 | ||||
Accounts Receivable | 333 | ||||
Property, Plant and Equipment | 9 | ||||
Intangible Assets / Intellectual Property | 2,920 | ||||
Goodwill | 1,257 | ||||
Other Assets | 500 | ||||
Note Payable | (2,000) | ||||
Deferred Revenue | (717) | ||||
IRS Note | (461) | ||||
Non-Controlling Interest | (650) | ||||
Other Payables | (996) | ||||
Purchase price | $ 693 | ||||
PC Werth Ltd [Member] | |||||
Business Acquisition [Line Items] | |||||
Inventory | 155 | ||||
Property, Plant and Equipment | 39 | ||||
Intangible Assets / Intellectual Property | 39 | ||||
Goodwill | 357 | ||||
Payables | (393) | ||||
Purchase price | $ 197 |
Acquisitions (Summary Of Unaudi
Acquisitions (Summary Of Unaudited Supplemental Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Acquisitions [Abstract] | ||
Revenue | $ 73,828 | $ 80,698 |
Net earnings attributable to IntriCon Shareholders | $ (4,749) | $ 955 |
Net earnings per share, Basic | $ (0.73) | $ 0.16 |
Net earnings per share, Diluted | $ (0.73) | $ 0.15 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017segment | |
Segment Reporting, Geographic And Customer Information [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting (Summary Of D
Segment Reporting (Summary Of Data By Industry Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue, net | $ 88,310 | $ 68,009 | $ 68,527 | |
Income (loss) from continuing operations | 1,156 | (2,974) | 3,082 | |
Identifiable assets (excluding goodwill) | 42,376 | 33,203 | ||
Goodwill | 10,808 | 10,555 | 9,551 | $ 9,194 |
Depreciation and amortization | 2,194 | 2,041 | 1,755 | |
Capital expenditures | 2,313 | 1,766 | $ 3,982 | |
Body Worn Devices [Member] | ||||
Revenue, net | 81,818 | 66,984 | ||
Income (loss) from continuing operations | 2,347 | (2,957) | ||
Identifiable assets (excluding goodwill) | 36,651 | 29,048 | ||
Goodwill | 9,551 | 9,551 | ||
Depreciation and amortization | 1,982 | 2,041 | ||
Capital expenditures | 2,158 | 1,766 | ||
Hearing Health Direct-to-Consumer [Member] | ||||
Revenue, net | 6,492 | 1,025 | ||
Income (loss) from continuing operations | (1,191) | (17) | ||
Identifiable assets (excluding goodwill) | 5,725 | 4,155 | ||
Goodwill | 1,257 | $ 1,004 | ||
Depreciation and amortization | 212 | |||
Capital expenditures | $ 155 |
Geographic And Customer Infor59
Geographic And Customer Information (Narrative) (Details) - customer | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Sales [Member] | One Customer [Member] | |||
Revenue, Major Customer [Line Items] | |||
Number of customers | 1 | 1 | 1 |
Percentage of sales and/or receivables | 48.00% | 40.00% | 43.00% |
Net Sales [Member] | Top Five Customers [Member] | |||
Revenue, Major Customer [Line Items] | |||
Number of customers | 5 | 5 | 5 |
Percentage of sales and/or receivables | 63.00% | 59.00% | 61.00% |
Accounts Receivable [Member] | Two Customers [Member] | |||
Revenue, Major Customer [Line Items] | |||
Number of customers | 2 | 2 | |
Percentage of sales and/or receivables | 33.00% | 31.00% |
Geographic And Customer Infor60
Geographic And Customer Information (Geographical Distribution Of Long-Lived Assets, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | $ 7,175 | $ 6,606 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | 5,407 | 4,640 |
Singapore [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | 1,254 | 1,413 |
Other - primarily United Kingdom and Indonesia [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | $ 514 | $ 553 |
Geographic And Customer Infor61
Geographic And Customer Information (Geographical Distribution Of Net Sales) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 88,310 | $ 68,009 | $ 68,527 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 70,746 | 47,460 | 49,687 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 9,249 | 11,019 | 6,634 |
Asia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 7,477 | 8,187 | 10,901 |
All Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 838 | $ 1,343 | $ 1,305 |
Goodwill (Schedule Of Goodwill)
Goodwill (Schedule Of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets [Abstract] | |||
Goodwill, Beginning Balance | $ 10,555 | $ 9,551 | $ 9,194 |
Acquisition of assets of PC Werth / Acquisition of equity interest of Hearing Help Express (Note 4) | 1,004 | 357 | |
Adjustments | 253 | ||
Goodwill, Ending Balance | $ 10,808 | $ 10,555 | $ 9,551 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Amortization expense for trademark and customer list | $ 155 |
Trademarks [Member] | |
Acquired finite-lived intangible assets amortization period | 20 years |
Customer Lists [Member] | |
Acquired finite-lived intangible assets amortization period | 18 years |
Intangible Assets (Summary Of I
Intangible Assets (Summary Of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accumulated amortization | $ (180) | |
Total, net of accumulated amortization | 2,740 | 2,920 |
Trademarks [Member] | ||
Intangible assets, Gross | 1,370 | 1,370 |
Customer Lists [Member] | ||
Intangible assets, Gross | $ 1,550 | $ 1,550 |
Investment In Partnerships (Nar
Investment In Partnerships (Narrative) (Details) € in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended |
Jan. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | |
Soundperience GmbH [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Cost method, ownership interest | 16.00% | |
Equity investment, cash advance and license agreement | $ | $ 1,415 | |
Signison [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method, ownership interest | 50.00% | |
Subsequent Event [Member] | Soundperience GmbH [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Acquisition of remaining percentage stake | 49.00% | |
Cost method, ownership interest | 33.00% | |
Purchase price | € | € 1,500 |
Investment In Partnerships (Inv
Investment In Partnerships (Investments in Partnerships) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Equity Method Investments [Line Items] | ||
Other | $ 276 | $ 146 |
Total | 1,616 | $ 146 |
Soundperience GmbH [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Cost Method Investments | 842 | |
Signison [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 498 |
Inventories (Schedule Of Invent
Inventories (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Raw materials | $ 9,182 | $ 7,482 |
Work-in process | 2,305 | 1,608 |
Finished products and components | 3,910 | 3,253 |
Total | 15,397 | 12,343 |
Domestic [Member] | ||
Inventory [Line Items] | ||
Raw materials | 6,924 | 5,731 |
Work-in process | 1,791 | 1,324 |
Finished products and components | 3,055 | 2,609 |
Total | 11,770 | 9,664 |
Foreign [Member] | ||
Inventory [Line Items] | ||
Raw materials | 2,258 | 1,751 |
Work-in process | 514 | 284 |
Finished products and components | 855 | 644 |
Total | $ 3,627 | $ 2,679 |
Short And Long-Term Debt (Narra
Short And Long-Term Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Short And Long-Term Debt Instrument [Line Items] | ||||
Percentage of proceeds from certain asset sales required to pay down term loan | 100.00% | |||
Interest expense | $ 716,000 | $ 553,000 | $ 369,000 | |
Debt | 11,500,000 | |||
Interest Rate Swap [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Other current liabilities | (8,000) | 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 | $ 4,500,000 | $ 6,500,000 | ||
Quarterly installments | 250,000 | |||
Debt | $ 6,250,000 | 5,250,000 | ||
Note Payable [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Debt | $ 2,000,000 | |||
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] | London Interbank Offered Rate (LIBOR) [Member] | Interest Rate Swap [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Basis spread on variable rate of debt instruments | 0.80% | |||
Minimum [Member] | Federal Funds Rate [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Basis spread on variable rate of debt instruments | (0.25%) | |||
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] | London Interbank Offered Rate (LIBOR) [Member] | Interest Rate Swap [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Basis spread on variable rate of debt instruments | 1.45% | |||
Maximum [Member] | Federal Funds Rate [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Basis spread on variable rate of debt instruments | 1.25% | |||
Domestic Asset-based Revolving Credit Facility [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 9,000,000 | |||
Inventory cap on borrowing base | 4,000,000 | 4,500,000 | ||
Annual capital expenditure allowed | $ 4,500,000 | $ 5,500,000 | ||
Credit facility, non-use fee percentage | 0.25% | |||
Weighted average interest rate of debt instruments | 5.51% | 4.36% | 3.68% | |
Credit facility, outstanding balance | $ 4,000,000 | $ 3,218,000 | ||
Credit facility, available borrowing capacity | 5,000,000 | 5,121,000 | ||
Interest expense | 80,000 | 57,000 | $ 72,000 | |
Debt | 4,000,000 | 3,218,000 | ||
Letters Of Credit [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | 200,000 | |||
Capital Expenditure Loan Facility [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | 2,500,000 | |||
Debt | ||||
Foreign Overdraft And Letter Of Credit Facility [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Weighted average interest rate of debt instruments | 3.87% | 3.50% | 3.37% | |
Credit facility, outstanding balance | $ 1,250,000 | $ 1,243,000 | ||
Credit facility, available borrowing capacity | 545,000 | 455,000 | ||
Debt | $ 1,250,000 | $ 1,243,000 | ||
Foreign Overdraft And Letter Of Credit Facility [Member] | Minimum [Member] | ||||
Short And Long-Term Debt Instrument [Line Items] | ||||
Basis spread on variable rate of debt instruments | 0.75% | |||
Foreign Overdraft And Letter Of 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, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Debt | $ 11,500 | |
Unamortized finance costs | (139) | $ (81) |
Total Debt | 11,361 | 11,630 |
Less: Current Maturities | (2,040) | (2,346) |
Total long-term debt | 9,321 | 9,284 |
Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 2,000 | |
Domestic Term-Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 6,250 | 5,250 |
Domestic Asset-based Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 4,000 | 3,218 |
Capital Expenditure Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt | ||
Foreign Overdraft And Letter Of Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 1,250 | $ 1,243 |
Short And Long-Term Debt (Sched
Short And Long-Term Debt (Schedule Of Payments Due By Year) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
2,018 | $ 2,040 | |
2,019 | 1,210 | |
2,020 | 1,000 | |
2,021 | 1,000 | |
2,022 | 6,250 | |
Thereafter | ||
Total Debt | 11,500 | |
Domestic Term-Loan [Member] | ||
Debt Instrument [Line Items] | ||
2,018 | 1,000 | |
2,019 | 1,000 | |
2,020 | 1,000 | |
2,021 | 1,000 | |
2,022 | 2,250 | |
Thereafter | ||
Total Debt | 6,250 | $ 5,250 |
Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 2,000 | |
Domestic Asset-based Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
2,018 | ||
2,019 | ||
2,020 | ||
2,021 | ||
2,022 | 4,000 | |
Thereafter | ||
Total Debt | 4,000 | 3,218 |
Capital Expenditure Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | ||
Foreign Overdraft And Letter Of Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
2,018 | 1,040 | |
2,019 | 210 | |
2,020 | ||
2,021 | ||
2,022 | ||
Thereafter | ||
Total Debt | $ 1,250 | $ 1,243 |
Other Accrued Liabilities (Comp
Other Accrued Liabilities (Components Of Other Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Accrued Liabilities [Abstract] | ||
Accrued professional fees | $ 64 | $ 63 |
Pension | 93 | 93 |
Postretirement benefit obligation | 78 | 103 |
Deferred revenue - direct to consumer | 1,336 | 614 |
Other | 1,653 | 1,041 |
Other accrued liabilities, Total | $ 3,224 | $ 1,914 |
Domestic And Foreign Income T72
Domestic And Foreign Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | ||||
Change in valuation allowance | $ 5,846,000 | $ (3,443,000) | $ (291,000) | |
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 | |
Tax provision at statutory rate | 34.00% | 34.00% | 34.00% | |
Forecast [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax provision at statutory rate | 21.00% | |||
United States IRS [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforward | $ 23,725,000 | |||
Net operating loss carryforwards expiration date | Jan. 31, 2022 | |||
State [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforward | $ 9,374,000 | |||
Net operating loss carryforwards expiration date | Jan. 31, 2017 |
Domestic And Foreign Income T73
Domestic And Foreign Income Taxes (Domestic And Foreign Income Taxes (Benefits)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Domestic And Foreign Income Taxes [Abstract] | |||
Current, Federal | $ 129 | $ 62 | |
Current, State | 17 | 13 | |
Current, Foreign | 211 | 178 | 27 |
Total Current | 357 | 253 | 27 |
Deferred, Federal | (126) | (26) | |
Deferred, State | |||
Deferred, Foreign | (223) | (10) | (8) |
Income Tax Expense | 8 | 217 | 19 |
Foreign | (342) | 661 | 1,792 |
Domestic | 1,506 | (3,418) | 1,309 |
Income (loss) from continuing operations before income taxes and discontinued operations | $ 1,164 | $ (2,757) | $ 3,101 |
Domestic And Foreign Income T74
Domestic And Foreign Income Taxes (Schedule Of Reconciliation Of The Statutory Federal Income Tax Rate To The Effective Tax Rate Based On Income (Loss)) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Domestic And Foreign Income Taxes [Abstract] | |||
Tax provision at statutory rate | 34.00% | 34.00% | 34.00% |
Change in valuation allowance | (502.26%) | (46.42%) | (20.08%) |
Impact of permanent items, including stock based compensation expense | 19.62% | (7.93%) | (21.33%) |
Effect of foreign tax rates | 7.04% | 2.49% | 7.82% |
State taxes net of federal benefit | 8.03% | 5.05% | 1.92% |
Effect of dividend of foreign subsidiary in prior year | 74.41% | (3.85%) | 5.18% |
Prior year provision to return true-up | 48.21% | 10.60% | (6.70%) |
Non-controlling interest | 2.08% | (1.77%) | 1.22% |
Change in expected future rate | 331.39% | ||
Other | (21.83%) | (0.03%) | (1.40%) |
Domestic and foreign income tax rate | 0.69% | (7.86%) | 0.63% |
Domestic And Foreign Income T75
Domestic And Foreign Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Domestic And Foreign Income Taxes [Abstract] | ||
Net operating loss carry forwards and credits | $ 6,048 | $ 12,043 |
Inventory | 558 | 650 |
Compensation accruals | 1,083 | 1,447 |
Accruals and reserves | 108 | 89 |
Credits | 387 | 251 |
Other | 757 | 459 |
Total Deferred tax assets | 8,941 | 14,939 |
Less: valuation allowance | (7,407) | (13,253) |
Deferred tax assets net of valuation allowance | 1,534 | 1,686 |
Deferred tax liabilities depreciation and amortization | (1,117) | (1,424) |
Undistributed Earnings of Foreign Subsidiary | (194) | |
Total deferred tax liabilities | (1,117) | (1,618) |
Net deferred tax | $ 417 | $ 68 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Company plan contirbutions | $ 445 | $ 212 | $ 341 |
Unrecognized prior service cost reduction | $ 1,100 | ||
Assumed health care cost trend rate | 5.80% | ||
Ultimate health care cost trend rate | 4.60% | ||
Year that plan rate reaches ultimate health care cost trend rate | 2,066 | ||
Discount rate used to determine year-end expense | 3.30% | 4.50% | 4.50% |
Pension Plan [Member] | |||
Discount rate used to determine year-end expense | 4.50% |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule Of Amounts Recognized In Consolidated Balance Sheets) (Details) - Postretirement Medical Benefits [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Change in Projected Benefit Obligation: | ||
Projected benefit obligation at January 1 | $ 604 | $ 645 |
Interest cost | 19 | 27 |
Actuarial loss | (7) | 24 |
Participant contributions | 15 | 23 |
Benefits paid | (98) | (115) |
Projected benefit obligation at December 31 | 533 | 604 |
Change in fair value of plan assets: | ||
Employer contributions | 83 | 92 |
Participant contributions | 15 | 23 |
Benefits paid | (98) | (115) |
Funded status | (533) | (604) |
Current liabilities | 78 | 103 |
Noncurrent liabilities | 455 | 501 |
Net amount recognized | 533 | 604 |
Amount recognized in other comprehensive income | ||
Unrecognized net actuarial gain | ||
Total |
Employee Benefit Plans (Sched78
Employee Benefit Plans (Schedule Of Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Benefit Plans [Abstract] | |||
Annual increase in cost of benefits | 5.80% | 5.90% | 7.00% |
Discount rate used to determine year-end obligations | 3.30% | 3.30% | 4.50% |
Discount rate used to determine year-end expense | 3.30% | 4.50% | 4.50% |
Employee Benefit Plans (Sched79
Employee Benefit Plans (Schedule Of Liabilities Recorded) (Details) - Other Postretirement Benefit Plans, Defined Benefit [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Current portion | $ 93 | $ 93 |
Long-term portion | 772 | 737 |
Total liability at December 31 | $ 865 | $ 830 |
Employee Benefit Plans (Sched80
Employee Benefit Plans (Schedule Of Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Employee Benefit Plans [Abstract] | |
2,018 | $ 198 |
2,019 | 186 |
2,020 | 174 |
2,021 | 164 |
2,022 | 153 |
Years 2023 - 2027 | $ 523 |
Currency Translation And Tran81
Currency Translation And Transaction Adjustments (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Currency Translation And Transaction Adjustments [Abstract] | |||
Foreign currency transaction loss | $ 89 | $ 128 | $ 40 |
Common Stock And Stock Option82
Common Stock And Stock Options (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate number of shares of common stock for which awards can be granted | 251,000 | ||
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 | 0 | 0 |
Weighted average remaining contractual life of options exercisable, years | 4 years 4 months 13 days | 5 years 7 months 2 days | |
Total intrinsic value of options exercised | $ 631 | $ 76 | $ 630 |
Weighted average fair value of options granted | $ 4.20 | $ 4.17 | $ 4.50 |
Forfeiture rate | 0.00% | ||
Stock option expense | $ 844 | $ 685 | $ 579 |
Stock options exercised using cashless method | 189,000 | ||
Unrecognized compensation costs related to non-vested awards | $ 995 | ||
Unrecognized compensation costs related to non-vested awards, recognition period | 1 year 9 months 22 days | ||
Shares issued from Equity Offering | $ 3,678 | ||
Shares issued from Equity Offering, shares | 805,000 | ||
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 | 925,000 | ||
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares approved under purchase plan | 300,000 | ||
Shares purchased for award | 11,000 | 18,000 | 14,000 |
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 Option83
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Common Stock And Stock Options [Abstract] | |||
Number of Shares, Outstanding | 1,385 | 1,324 | 1,313 |
Number of Shares, Options forfeited or cancelled | (15) | (70) | |
Number of Shares, Options granted | 303 | 192 | 170 |
Number of Shares, Options exercised | (220) | (61) | (159) |
Number of Shares, Outstanding | 1,453 | 1,385 | 1,324 |
Weighted-average Exercise Price, Outstanding | $ 6.54 | $ 6.36 | $ 5.86 |
Weighted-average Exercise Price, Options forfeited or cancelled | 12.42 | 5.75 | |
Weighted-average Exercise Price, Options granted | 7.28 | 7.11 | 7.14 |
Weighted-average Exercise Price, Options exercised | 10.67 | 5.22 | 3.12 |
Weighted-average Exercise Price, Outstanding | $ 5.95 | $ 6.54 | $ 6.36 |
Aggregate Intrinsic Value, Outstanding | $ 19,000 | ||
Number of Shares, Exercisable | 970 | 1,025 | |
Weighted-average Exercise Price, Exercisable | $ 5.42 | $ 6.45 | |
Aggregate Intrinsic Value, Exercisable | $ 13,958 | $ 1,615 | |
Number of Shares, Available for future grant | 251 |
Common Stock And Stock Option84
Common Stock And Stock Options (Schedule Of Weighted Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility, minimum | 59.29% | 61.66% | 65.15% |
Expected volatility, maximum | 63.51% | 66.45% | 72.81% |
Risk-free interest rate, minimum | 1.87% | 1.36% | 1.42% |
Risk-free interest rate, maximum | 2.16% | 2.00% | 1.88% |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income (Loss) Per Share [Abstract] | |||
Securities excluded from computation of diluted income per share | 28 | 37 | 71 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income (Loss) Per Share [Abstract] | |||
Income (loss) from continuing operations before discontinued operations | $ 1,156 | $ (2,974) | $ 3,082 |
Loss from discontinued operations, net of income taxes | (128) | (1,770) | (965) |
Loss on sale of discontinued operations | (164) | ||
Net income (loss) | 864 | (4,744) | 2,117 |
Less: Loss allocated to non-controlling interest | (938) | (157) | (111) |
Net income (loss) attributable to IntriCon shareholders | $ 1,802 | $ (4,587) | $ 2,228 |
Basic - weighted shares outstanding | 6,852 | 6,497 | 5,907 |
Weighted shares assumed upon exercise of stock options | 455 | 334 | |
Diluted - weighted shares outstanding | 7,307 | 6,497 | 6,241 |
Continuing operations | $ 0.31 | $ (0.43) | $ 0.54 |
Discontinued operations | (0.04) | (0.27) | (0.16) |
Net income (loss) per share: | 0.26 | (0.71) | 0.38 |
Continuing operations | 0.29 | (0.43) | 0.51 |
Discontinued operations | (0.04) | (0.27) | (0.15) |
Net income (loss) per share: | $ 0.25 | $ (0.71) | $ 0.36 |
Contigencies And Commitments (D
Contigencies And Commitments (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Selas SAS, Liabilities | $ | $ 468 | ||
Rent expense | $ | $ 1,728 | $ 1,498 | $ 1,265 |
Initial term | 1 year | ||
Remaining rentals payable, 2017 | $ | $ 1,647 | ||
Remaining rentals payable, 2018 | $ | 1,674 | ||
Remaining rentals payable, 2019 | $ | 1,586 | ||
Remaining rentals payable, 2020 | $ | 1,135 | ||
Remaining rentals payable, 2021 | $ | $ 444 | ||
Minnesota [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of leased facilities | item | 2 | ||
Minnesota [Member] | Lease Expiration In 2022 [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of leased facilities | item | 1 | ||
Illinois [Member] | Lease Expiration In 2021 [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of leased facilities | item | 1 | ||
Singapore [Member] | Lease Expiration In 2020 [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of leased facilities | item | 1 | ||
Indonesia [Member] | Lease Expiration In 2021 [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of leased facilities | item | 1 | ||
GB [Member] | Lease Expiration In 2021 [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of leased facilities | item | 1 | ||
Germany 2 [Member] | Lease Expiration In 2022 [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of leased facilities | item | 1 | ||
Minimum [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Base salary term | 11 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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Total base rent expense, real estate taxes and other charges | $ 371 | $ 484 | $ 487 |
Legal services and costs | $ 140 | $ 406 | $ 203 |
Signison [Member] | |||
Equity method, ownership interest | 50.00% | ||
Note receivable | $ 463 |
Statements Of Cash Flows (Suppl
Statements Of Cash Flows (Supplemental Disclosures Of Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statements Of Cash Flows [Abstract] | |||
Interest received | $ 1 | $ 1 | $ 1 |
Interest paid | 716 | 568 | 437 |
Income taxes paid | 166 | $ 196 | $ 263 |
Noncash Transactions: NXP technology access | 2,732 | ||
Noncash Transactions: NXP long-term liability | $ 2,600 |
Revenue By Market (Schedule Of
Revenue By Market (Schedule Of Net Revenue By Market)(Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue, Major Customer [Line Items] | |||
Total Revenue | $ 88,310 | $ 68,009 | $ 68,527 |
Medical [Member] | |||
Revenue, Major Customer [Line Items] | |||
Total Revenue | 52,336 | 37,602 | 39,609 |
Hearing Health [Member] | |||
Revenue, Major Customer [Line Items] | |||
Total Revenue | 23,316 | 21,882 | 21,089 |
Hearing Health - Direct To Customer [Member] | |||
Revenue, Major Customer [Line Items] | |||
Total Revenue | 6,492 | 1,025 | |
Professional Audio Communications [Member] | |||
Revenue, Major Customer [Line Items] | |||
Total Revenue | $ 6,166 | $ 7,500 | $ 7,829 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - Manufacturing Facility, Floor Space [Member] $ in Thousands | Mar. 07, 2018USD ($)ft² |
Subsequent Event [Line Items] | |
Square feet of manufacturing floor space | ft² | 30,000 |
Lease term | 5 years |
Abatement period | 4 months |
Annual base rent | $ | $ 250 |
Annual rent escalation | 2.50% |