Document And Entity Information
v5.13.55.0
Document And Entity Information
9 Months Ended
Sep. 30, 2015
Nov. 01, 2015
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2015  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2015  
Entity Registrant Name COMMUNICATIONS SYSTEMS INC  
Entity Central Index Key 0000022701  
Current Fiscal Year End Date --12-31  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   8,754,214dei_EntityCommonStockSharesOutstanding

Condensed Consolidated Balance Sheets
v5.13.55.0
Condensed Consolidated Balance Sheets (USD $)
Sep. 30, 2015
Dec. 31, 2014
CURRENT ASSETS:    
Cash and cash equivalents $ 8,027,641us-gaap_CashAndCashEquivalentsAtCarryingValue $ 13,736,857us-gaap_CashAndCashEquivalentsAtCarryingValue
Investments 2,685,691us-gaap_ShortTermInvestments 4,602,717us-gaap_ShortTermInvestments
Trade accounts receivable, less allowance for doubtful accounts of $172,000 and $22,000, respectively 23,027,072us-gaap_AccountsReceivableNetCurrent 13,839,662us-gaap_AccountsReceivableNetCurrent
Inventories 25,920,573us-gaap_InventoryNet 31,109,653us-gaap_InventoryNet
Prepaid income taxes 3,782,802us-gaap_PrepaidTaxes 2,317,688us-gaap_PrepaidTaxes
Other current assets 1,676,224us-gaap_OtherAssetsCurrent 1,050,000us-gaap_OtherAssetsCurrent
Deferred income taxes 3,102,412us-gaap_DeferredTaxAssetsNetCurrent 3,249,164us-gaap_DeferredTaxAssetsNetCurrent
TOTAL CURRENT ASSETS 68,222,415us-gaap_AssetsCurrent 69,905,741us-gaap_AssetsCurrent
PROPERTY, PLANT AND EQUIPMENT, net 17,577,043us-gaap_PropertyPlantAndEquipmentNet 18,153,152us-gaap_PropertyPlantAndEquipmentNet
OTHER ASSETS:    
Investments 10,056,996us-gaap_LongTermInvestments 11,540,261us-gaap_LongTermInvestments
Goodwill 1,462,503us-gaap_Goodwill  
Funded pension assets 129,542us-gaap_DefinedBenefitPlanAssetsForPlanBenefitsNoncurrent 172,405us-gaap_DefinedBenefitPlanAssetsForPlanBenefitsNoncurrent
Other assets 1,162,471us-gaap_OtherAssetsMiscellaneousNoncurrent 514,676us-gaap_OtherAssetsMiscellaneousNoncurrent
TOTAL OTHER ASSETS 12,811,512us-gaap_OtherAssetsNoncurrent 12,227,342us-gaap_OtherAssetsNoncurrent
TOTAL ASSETS 98,610,970us-gaap_Assets 100,286,235us-gaap_Assets
CURRENT LIABILITIES:    
Current portion of long-term debt 238,024us-gaap_LongTermDebtCurrent 524,220us-gaap_LongTermDebtCurrent
Line of credit borrowings 3,900,000us-gaap_LinesOfCreditCurrent  
Accounts payable 7,208,659us-gaap_AccountsPayableCurrent 5,180,631us-gaap_AccountsPayableCurrent
Accrued compensation and benefits 3,429,443us-gaap_EmployeeRelatedLiabilitiesCurrent 3,696,930us-gaap_EmployeeRelatedLiabilitiesCurrent
Accrued consideration 434,286jcs_AccruedConsideration  
Other accrued liabilities 2,163,991us-gaap_OtherAccruedLiabilitiesCurrent 2,146,582us-gaap_OtherAccruedLiabilitiesCurrent
Dividends payable 1,464,332us-gaap_DividendsPayableCurrent 1,446,498us-gaap_DividendsPayableCurrent
TOTAL CURRENT LIABILITIES 18,838,735us-gaap_LiabilitiesCurrent 12,994,861us-gaap_LiabilitiesCurrent
LONG TERM LIABILITIES:    
Uncertain tax positions 135,930us-gaap_LiabilityForUncertainTaxPositionsNoncurrent 77,279us-gaap_LiabilityForUncertainTaxPositionsNoncurrent
Deferred income taxes 631,819us-gaap_DeferredTaxLiabilitiesNoncurrent 1,089,994us-gaap_DeferredTaxLiabilitiesNoncurrent
Long term debt - mortgage payable   103,603us-gaap_SecuredLongTermDebt
TOTAL LONG-TERM LIABILITIES 767,749us-gaap_LiabilitiesNoncurrent 1,270,876us-gaap_LiabilitiesNoncurrent
COMMITMENTS AND CONTINGENCIES (Footnote 8)      
STOCKHOLDERS' EQUITY    
Preferred stock, par value $1.00 per share; 3,000,000 shares authorized; none issued      
Common stock, par value $.05 per share; 30,000,000 shares authorized; 8,747,201 and 8,654,756 shares issued and outstanding, respectively 437,360us-gaap_CommonStockValue 432,738us-gaap_CommonStockValue
Additional paid-in capital 39,971,442us-gaap_AdditionalPaidInCapital 38,593,230us-gaap_AdditionalPaidInCapital
Retained earnings 39,437,485us-gaap_RetainedEarningsAccumulatedDeficit 47,689,688us-gaap_RetainedEarningsAccumulatedDeficit
Accumulated other comprehensive loss (841,801)us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax (695,158)us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax
TOTAL STOCKHOLDERS' EQUITY 79,004,486us-gaap_StockholdersEquity 86,020,498us-gaap_StockholdersEquity
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 98,610,970us-gaap_LiabilitiesAndStockholdersEquity $ 100,286,235us-gaap_LiabilitiesAndStockholdersEquity

Condensed Consolidated Balance Sheets (Parenthetical)
v5.13.55.0
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Condensed Consolidated Balance Sheets [Abstract]    
Trade accounts receivable, allowance for doubtful accounts $ 172us-gaap_AllowanceForDoubtfulAccountsReceivableCurrent $ 22us-gaap_AllowanceForDoubtfulAccountsReceivableCurrent
Preferred stock, par value $ 1.00us-gaap_PreferredStockParOrStatedValuePerShare $ 1.00us-gaap_PreferredStockParOrStatedValuePerShare
Preferred stock, shares authorized 3,000,000us-gaap_PreferredStockSharesAuthorized 3,000,000us-gaap_PreferredStockSharesAuthorized
Preferred stock, shares issued 0us-gaap_PreferredStockSharesIssued 0us-gaap_PreferredStockSharesIssued
Common stock, par value $ 0.05us-gaap_CommonStockParOrStatedValuePerShare $ 0.05us-gaap_CommonStockParOrStatedValuePerShare
Common stock, shares authorized 30,000,000us-gaap_CommonStockSharesAuthorized 30,000,000us-gaap_CommonStockSharesAuthorized
Common stock, shares issued 8,747,201us-gaap_CommonStockSharesIssued 8,654,756us-gaap_CommonStockSharesIssued
Common stock, shares outstanding 8,747,201us-gaap_CommonStockSharesOutstanding 8,654,756us-gaap_CommonStockSharesOutstanding

Condensed Consolidated Statements Of Income (Loss) And Comprehensive Income (Loss)
v5.13.55.0
Condensed Consolidated Statements Of Income (Loss) And Comprehensive Income (Loss) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Condensed Consolidated Statements Of Income (Loss) And Comprehensive Income (Loss) [Abstract]        
Sales $ 32,246,166us-gaap_SalesRevenueNet $ 33,433,924us-gaap_SalesRevenueNet $ 79,988,763us-gaap_SalesRevenueNet $ 91,841,307us-gaap_SalesRevenueNet
Costs and expenses:        
Cost of sales 21,822,331us-gaap_CostOfRevenue 21,421,424us-gaap_CostOfRevenue 56,139,121us-gaap_CostOfRevenue 58,747,022us-gaap_CostOfRevenue
Selling, general and administrative expenses 9,992,444us-gaap_SellingGeneralAndAdministrativeExpense 9,354,599us-gaap_SellingGeneralAndAdministrativeExpense 30,827,158us-gaap_SellingGeneralAndAdministrativeExpense 28,044,957us-gaap_SellingGeneralAndAdministrativeExpense
Restructuring expense 0us-gaap_RestructuringCharges   0us-gaap_RestructuringCharges 237,838us-gaap_RestructuringCharges
Total costs and expenses 31,814,775us-gaap_CostsAndExpenses 30,776,023us-gaap_CostsAndExpenses 86,966,279us-gaap_CostsAndExpenses 87,029,817us-gaap_CostsAndExpenses
Operating income (loss) 431,391us-gaap_OperatingIncomeLoss 2,657,901us-gaap_OperatingIncomeLoss (6,977,516)us-gaap_OperatingIncomeLoss 4,811,490us-gaap_OperatingIncomeLoss
Other income (expenses):        
Investment and other income 105,700us-gaap_InvestmentIncomeInterestAndDividend 62,843us-gaap_InvestmentIncomeInterestAndDividend 172,555us-gaap_InvestmentIncomeInterestAndDividend 96,867us-gaap_InvestmentIncomeInterestAndDividend
Gain (loss) on sale of assets 5,035us-gaap_GainLossOnDispositionOfAssets 30,331us-gaap_GainLossOnDispositionOfAssets 9,408us-gaap_GainLossOnDispositionOfAssets (105,799)us-gaap_GainLossOnDispositionOfAssets
Interest and other expense (27,828)us-gaap_InterestAndDebtExpense (17,467)us-gaap_InterestAndDebtExpense (102,090)us-gaap_InterestAndDebtExpense (58,513)us-gaap_InterestAndDebtExpense
Other income (expense), net 82,907us-gaap_NonoperatingIncomeExpense 75,707us-gaap_NonoperatingIncomeExpense 79,873us-gaap_NonoperatingIncomeExpense (67,445)us-gaap_NonoperatingIncomeExpense
Income (loss) from operations before income taxes 514,298us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest 2,733,608us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest (6,897,643)us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest 4,744,045us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
Income tax (benefit) expense (769,656)us-gaap_IncomeTaxExpenseBenefit 1,038,707us-gaap_IncomeTaxExpenseBenefit (2,989,951)us-gaap_IncomeTaxExpenseBenefit 1,752,243us-gaap_IncomeTaxExpenseBenefit
Net income (loss) 1,283,954us-gaap_NetIncomeLoss 1,694,901us-gaap_NetIncomeLoss (3,907,692)us-gaap_NetIncomeLoss 2,991,802us-gaap_NetIncomeLoss
Other comprehensive loss, net of tax:        
Additional minimum pension liability adjustments (11,985)us-gaap_OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTax (76,971)us-gaap_OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTax (38,783)us-gaap_OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTax (255,761)us-gaap_OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTax
Unrealized (loss)/gain on available-for-sale securities (1,010)us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax (31,999)us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax 48,916us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax (46,609)us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
Foreign currency translation adjustment (130,569)us-gaap_OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax (225,050)us-gaap_OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax (156,776)us-gaap_OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax (142,506)us-gaap_OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
Total other comprehensive loss (143,564)us-gaap_OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent (334,020)us-gaap_OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent (146,643)us-gaap_OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent (444,876)us-gaap_OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
Comprehensive income (loss) $ 1,140,390us-gaap_ComprehensiveIncomeNetOfTax $ 1,360,881us-gaap_ComprehensiveIncomeNetOfTax $ (4,054,335)us-gaap_ComprehensiveIncomeNetOfTax $ 2,546,926us-gaap_ComprehensiveIncomeNetOfTax
Basic net income (loss) per share: $ 0.15us-gaap_EarningsPerShareBasic $ 0.20us-gaap_EarningsPerShareBasic $ (0.45)us-gaap_EarningsPerShareBasic $ 0.35us-gaap_EarningsPerShareBasic
Diluted net income (loss) per share: $ 0.15us-gaap_EarningsPerShareDiluted $ 0.20us-gaap_EarningsPerShareDiluted $ (0.45)us-gaap_EarningsPerShareDiluted $ 0.35us-gaap_EarningsPerShareDiluted
Weighted Average Basic Shares Outstanding 8,707,564us-gaap_WeightedAverageNumberOfSharesOutstandingBasic 8,641,853us-gaap_WeightedAverageNumberOfSharesOutstandingBasic 8,692,154us-gaap_WeightedAverageNumberOfSharesOutstandingBasic 8,609,835us-gaap_WeightedAverageNumberOfSharesOutstandingBasic
Weighted Average Dilutive Shares Outstanding 8,743,179us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding 8,663,142us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding 8,692,154us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding 8,631,985us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding
Dividends declared per share $ 0.16us-gaap_CommonStockDividendsPerShareDeclared $ 0.16us-gaap_CommonStockDividendsPerShareDeclared $ 0.48us-gaap_CommonStockDividendsPerShareDeclared $ 0.48us-gaap_CommonStockDividendsPerShareDeclared

Condensed Consolidated Statements Of Changes In Stockholders' Equity
v5.13.55.0
Condensed Consolidated Statements Of Changes In Stockholders' Equity (USD $)
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Loss [Member]
Total
BALANCE at Dec. 31, 2014 $ 432,738us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
$ 38,593,230us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
$ 47,689,688us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
$ (695,158)us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
$ 86,020,498us-gaap_StockholdersEquity
BALANCE, Shares at Dec. 31, 2014 8,654,756us-gaap_SharesOutstanding
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
       
Net loss     (3,907,692)us-gaap_NetIncomeLoss
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
  (3,907,692)us-gaap_NetIncomeLoss
Issuance of common stock under Employee Stock Purchase Plan 678us-gaap_StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
146,208us-gaap_StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
    146,886us-gaap_StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
Issuance of common stock under Employee Stock Purchase Plan, Shares 13,567us-gaap_StockIssuedDuringPeriodSharesEmployeeStockPurchasePlans
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
       
Issuance of common stock to Employee Stock Ownership Plan 1,882us-gaap_StockIssuedDuringPeriodValueEmployeeStockOwnershipPlan
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
393,338us-gaap_StockIssuedDuringPeriodValueEmployeeStockOwnershipPlan
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
    395,220us-gaap_StockIssuedDuringPeriodValueEmployeeStockOwnershipPlan
Issuance of common stock to Employee Stock Ownership Plan, Shares 37,640us-gaap_StockIssuedDuringPeriodSharesEmployeeStockOwnershipPlan
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
       
Issuance of common stock under Non-Employee Stock Option Plan 600us-gaap_StockIssuedDuringPeriodValueIssuedForServices
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
121,920us-gaap_StockIssuedDuringPeriodValueIssuedForServices
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
    122,520us-gaap_StockIssuedDuringPeriodValueIssuedForServices
Issuance of common stock under Non-Employee Stock Option Plan, Shares 12,000us-gaap_StockIssuedDuringPeriodSharesIssuedForServices
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
       
Issuance of common stock under Executive Stock Plan 2,263us-gaap_StockIssuedDuringPeriodValueShareBasedCompensation
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
0us-gaap_StockIssuedDuringPeriodValueShareBasedCompensation
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
    2,263us-gaap_StockIssuedDuringPeriodValueShareBasedCompensation
Issuance of common stock under Executive Stock Plan, Shares 45,254us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensation
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
       
Tax benefit from stock based payments   87,842us-gaap_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
    87,842us-gaap_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation
Share-based compensation   701,204us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
    701,204us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
Purchase of common stock (801)us-gaap_StockRepurchasedDuringPeriodValue
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
(72,300)us-gaap_StockRepurchasedDuringPeriodValue
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
(105,961)us-gaap_StockRepurchasedDuringPeriodValue
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
  (179,062)us-gaap_StockRepurchasedDuringPeriodValue
Purchase of common stock, Shares (16,016)us-gaap_StockRepurchasedDuringPeriodShares
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
       
Shareholder dividends     (4,238,550)us-gaap_Dividends
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
  (4,238,550)us-gaap_Dividends
Other comprehensive loss       (146,643)us-gaap_OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
(146,643)us-gaap_OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
BALANCE at Sep. 30, 2015 $ 437,360us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
$ 39,971,442us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
$ 39,437,485us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
$ (841,801)us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
$ 79,004,486us-gaap_StockholdersEquity
BALANCE, Shares at Sep. 30, 2015 8,747,201us-gaap_SharesOutstanding
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
       

Condensed Consolidated Statements Of Cash Flows
v5.13.55.0
Condensed Consolidated Statements Of Cash Flows (USD $)
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (3,907,692)us-gaap_NetIncomeLoss $ 2,991,802us-gaap_NetIncomeLoss
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Depreciation and amortization 2,476,244us-gaap_DepreciationDepletionAndAmortization 1,756,792us-gaap_DepreciationDepletionAndAmortization
Share based compensation 701,204us-gaap_ShareBasedCompensation 518,682us-gaap_ShareBasedCompensation
Deferred taxes (311,424)us-gaap_DeferredIncomeTaxExpenseBenefit 538,335us-gaap_DeferredIncomeTaxExpenseBenefit
Change in fair value of acquisition-related contingent consideration (28,574)us-gaap_BusinessCombinationContingentConsiderationArrangementsChangeInAmountOfContingentConsiderationLiability1  
(Gain) loss on sale of assets (9,408)us-gaap_GainLossOnDispositionOfAssets 105,799us-gaap_GainLossOnDispositionOfAssets
Excess tax benefit from share-based payments (87,842)us-gaap_ExcessTaxBenefitFromShareBasedCompensationOperatingActivities (67,194)us-gaap_ExcessTaxBenefitFromShareBasedCompensationOperatingActivities
Changes in assets and liabilities:    
Trade receivables (9,155,151)us-gaap_IncreaseDecreaseInAccountsReceivable 6,279,960us-gaap_IncreaseDecreaseInAccountsReceivable
Inventories 5,177,573us-gaap_IncreaseDecreaseInInventories (1,979,772)us-gaap_IncreaseDecreaseInInventories
Prepaid income taxes (1,465,114)us-gaap_IncreaseDecreaseInPrepaidTaxes 443,330us-gaap_IncreaseDecreaseInPrepaidTaxes
Other assets (1,363,057)us-gaap_IncreaseDecreaseInOtherOperatingAssets (69,651)us-gaap_IncreaseDecreaseInOtherOperatingAssets
Accounts payable 1,865,964us-gaap_IncreaseDecreaseInAccountsPayable 1,061,120us-gaap_IncreaseDecreaseInAccountsPayable
Accrued compensation and benefits 130,096us-gaap_IncreaseDecreaseInEmployeeRelatedLiabilities (201,385)us-gaap_IncreaseDecreaseInEmployeeRelatedLiabilities
Other accrued liabilities (27,998)us-gaap_IncreaseDecreaseInOtherAccruedLiabilities (106,111)us-gaap_IncreaseDecreaseInOtherAccruedLiabilities
Income taxes payable 146,493us-gaap_IncreaseDecreaseInAccruedIncomeTaxesPayable (14,585)us-gaap_IncreaseDecreaseInAccruedIncomeTaxesPayable
Other (58,295)us-gaap_OtherOperatingActivitiesCashFlowStatement (86,662)us-gaap_OtherOperatingActivitiesCashFlowStatement
Net cash (used in) provided by operating activities (5,916,981)us-gaap_NetCashProvidedByUsedInOperatingActivitiesContinuingOperations 11,170,460us-gaap_NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
CASH FLOWS FROM INVESTING ACTIVITIES:    
Capital expenditures (1,782,717)us-gaap_PaymentsToAcquireProductiveAssets (3,987,901)us-gaap_PaymentsToAcquireProductiveAssets
Purchases of investments   (11,059,893)us-gaap_PaymentsToAcquireInvestments
Acquisition of business, net of cash acquired (917,363)us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquired  
Proceeds from the sale of fixed assets 56,471us-gaap_ProceedsFromSaleOfProductiveAssets 48,299us-gaap_ProceedsFromSaleOfProductiveAssets
Proceeds from the sale of investments 3,449,207us-gaap_ProceedsFromSaleMaturityAndCollectionsOfInvestments 4,980,000us-gaap_ProceedsFromSaleMaturityAndCollectionsOfInvestments
Net cash provided by (used in) investing activities 805,598us-gaap_NetCashProvidedByUsedInInvestingActivitiesContinuingOperations (10,019,495)us-gaap_NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
CASH FLOWS FROM FINANCING ACTIVITIES:    
Borrowings against line of credit 3,900,000us-gaap_ProceedsFromLinesOfCredit  
Cash dividends paid (4,220,716)us-gaap_PaymentsOfDividends (4,186,764)us-gaap_PaymentsOfDividends
Mortgage principal payments (389,799)us-gaap_RepaymentsOfSecuredDebt (364,135)us-gaap_RepaymentsOfSecuredDebt
Proceeds from issuance of common stock, net of shares withheld 92,607us-gaap_ProceedsFromIssuanceOfCommonStock 221,292us-gaap_ProceedsFromIssuanceOfCommonStock
Excess tax benefit from stock-based payments 87,842us-gaap_ExcessTaxBenefitFromShareBasedCompensationFinancingActivities 67,194us-gaap_ExcessTaxBenefitFromShareBasedCompensationFinancingActivities
Payment of contingent consideration related to acquisition   (565,647)us-gaap_PaymentsOfMergerRelatedCostsFinancingActivities
Purchase of common stock   (16,675)us-gaap_PaymentsForRepurchaseOfCommonStock
Net cash used in financing activities (530,066)us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperations (4,844,735)us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH (67,767)us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents (34,417)us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents
NET DECREASE IN CASH AND CASH EQUIVALENTS (5,709,216)us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease (3,728,187)us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 13,736,857us-gaap_CashAndCashEquivalentsAtCarryingValue 20,059,120us-gaap_CashAndCashEquivalentsAtCarryingValue
CASH AND CASH EQUIVALENTS AT END OF PERIOD 8,027,641us-gaap_CashAndCashEquivalentsAtCarryingValue 16,330,933us-gaap_CashAndCashEquivalentsAtCarryingValue
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:    
Income taxes (refunded) paid (1,447,021)us-gaap_IncomeTaxesPaidNet 752,787us-gaap_IncomeTaxesPaidNet
Interest paid 34,503us-gaap_InterestPaid 58,513us-gaap_InterestPaid
Dividends declared not paid 1,464,332us-gaap_DividendsPayableCurrentAndNoncurrent 1,433,115us-gaap_DividendsPayableCurrentAndNoncurrent
Capital expenditures in accounts payable 91,808us-gaap_CapitalExpendituresIncurredButNotYetPaid 83,102us-gaap_CapitalExpendituresIncurredButNotYetPaid
Acquisition costs in accrued consideration $ 434,286us-gaap_NoncashOrPartNoncashAcquisitionPayablesAssumed1  

Summary Of Significant Accounting Policies
v5.13.55.0
Summary Of Significant Accounting Policies
9 Months Ended
Sep. 30, 2015
Summary Of Significant Accounting Policies [Abstract]  
Summary Of Significant Accounting Policies

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Description of Business

 

Communications Systems, Inc. (herein collectively called “CSI” or the “Company”) is a Minnesota corporation organized in 1969 that operates primarily as a holding company conducting its business through three business units having operations in the United States, Costa Rica, and the United Kingdom. Through its Suttle business unit, the Company manufactures and sells copper and fiber connectivity systems, enclosure systems, and active technologies for voice, data and video communications. Through its Transition Networks business unit, the Company manufactures and sells media converters, network interface devices, network interface cards, Ethernet switches and other connectivity products that offer the ability to affordably integrate the benefits of fiber optics into any data network.  Through its JDL Technologies business unit, the Company provides technology solutions including virtualization, managed services, wired and wireless network design and implementation, HIPAA-compliant IT services, and converged infrastructure configuration and deployment.

 

Financial Statement Presentation

 

The condensed consolidated balance sheets and condensed consolidated statement of changes in stockholders’ equity as of September 30, 2015 and the related condensed consolidated statements of income (loss) and comprehensive income (loss), and the condensed consolidated statements of cash flows for the periods ended September 30, 2015 and 2014 have been prepared by Company management.  In the opinion of management, all adjustments (which include only normal recurring adjustments, except where noted) necessary to present fairly the financial position, results of operations, and cash flows at September 30, 2015 and 2014 and for the periods then ended have been made.

 

Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted.  We recommend these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2014 Annual Report to Shareholders on Form 10-K.  The results of operations for the period ended September 30, 2015 are not necessarily indicative of operating results for the entire year.

 

The presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosure of contingent assets and liabilities at the balance sheet date, and the reported amounts of revenues and expenses during the reporting period.  The estimates and assumptions used in the accompanying condensed consolidated financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the time of the financial statements.  Actual results could differ from those estimates.

 

Except to the extent updated or described below, the significant accounting policies set forth in Note 1 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, appropriately represent, in all material respects, the current status of accounting policies, and are incorporated herein by reference.

 

Accumulated Other Comprehensive Loss

 

The components of accumulated other comprehensive loss, net of tax, are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30

 

 

December 31

 

 

 

2015

 

 

2014

Foreign currency translation

 

$

(2,763,000)

 

$

(2,605,000)

Unrealized gain/(loss) on available-for-sale investments

 

 

8,000 

 

 

(41,000)

Pension liability adjustment

 

 

1,913,000 

 

 

1,951,000 

 

 

$

(842,000)

 

$

(695,000)

 


Cash Equivalents And Investments
v5.13.55.0
Cash Equivalents And Investments
9 Months Ended
Sep. 30, 2015
Cash Equivalents And Investments [Abstract]  
Cash Equivalents And Investments

NOTE 2 – CASH EQUIVALENTS AND INVESTMENTS

 

The following tables show the Company’s cash equivalents and available-for-sale securities’ amortized cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or short and long term investments as of September 30, 2015 and December 31, 2014:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2015

 

Amortized Cost

 

Gross Unrealized Gains

 

Gross Unrealized Losses

 

Fair Value

 

Cash Equivalents

 

Short-Term Investments

 

Long-Term Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$

2,222,000 

 

$

 -

 

$

 -

 

$

2,222,000 

 

$

2,222,000 

 

$

 

 

$

 

Subtotal

 

2,222,000 

 

 

 -

 

 

 -

 

 

2,222,000 

 

 

2,222,000 

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

5,972,000 

 

 

10,000 

 

 

(3,000)

 

 

5,979,000 

 

 

 -

 

 

962,000 

 

 

5,017,000 

Corporate Notes/Bonds

 

6,770,000 

 

 

1,000 

 

 

(7,000)

 

 

6,764,000 

 

 

 -

 

 

1,724,000 

 

 

5,040,000 

Subtotal

 

12,742,000 

 

 

11,000 

 

 

(10,000)

 

 

12,743,000 

 

 

 -

 

 

2,686,000 

 

 

10,057,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

14,964,000 

 

$

11,000 

 

$

(10,000)

 

$

14,965,000 

 

$

2,222,000 

 

$

2,686,000 

 

$

10,057,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

Amortized Cost

 

Gross Unrealized Gains

 

Gross Unrealized Losses

 

Fair Value

 

Cash Equivalents

 

Short-Term Investments

 

Long-Term Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$

1,073,000 

 

$

 -

 

$

 -

 

$

1,073,000 

 

$

1,073,000 

 

$

 

 

$

 

Subtotal

 

1,073,000 

 

 

 -

 

 

 -

 

 

1,073,000 

 

 

1,073,000 

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

7,414,000 

 

 

1,000 

 

 

(32,000)

 

 

7,383,000 

 

 

 -

 

 

1,920,000 

 

 

5,463,000 

Corporate Notes/Bonds

 

8,777,000 

 

 

6,000 

 

 

(23,000)

 

 

8,760,000 

 

 

 -

 

 

2,683,000 

 

 

6,077,000 

Subtotal

 

16,191,000 

 

 

7,000 

 

 

(55,000)

 

 

16,143,000 

 

 

 -

 

 

4,603,000 

 

 

11,540,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

17,264,000 

 

$

7,000 

 

$

(55,000)

 

$

17,216,000 

 

$

1,073,000 

 

$

4,603,000 

 

$

11,540,000 

 

As part of the Company’s amended credit agreement with Wells Fargo Bank, the Company has pledged $5.0 million in long term investments against the line of credit. The Company tests for other-than-temporary losses on a quarterly basis and has considered the unrealized losses shown above to be temporary in nature. The Company intends to hold these investments until it can recover the full principal amount and has the ability to do so based on its other sources of liquidity. The Company expects these recoveries to occur prior to the contractual maturities.  All unrealized losses as of September 30, 2015 were in a continuous unrealized loss position for less than twelve months and are not deemed to be other than temporarily impaired as of September 30, 2015.

 

The following table summarizes the estimated fair value of our investments, designated as available-for-sale and classified by the contractual maturity date of the securities as of September 30, 2015:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

Estimated Market Value

 

 

 

 

 

Due within one year

 

$  

2,685,000 

 

$

2,686,000 

Due after one year through five years

 

 

10,057,000 

 

 

10,057,000 

 

 

12,742,000 

 

$

12,743,000 

 

The Company did not recognize any gross realized gains, and gross realized losses were immaterial, during the nine-month periods ending September 30, 2015 and 2014, respectively. If the Company had realized gains or losses, they would be included within investment and other income in the accompanying consolidated results of operations.


Stock-Based Compensation
v5.13.55.0
Stock-Based Compensation
9 Months Ended
Sep. 30, 2015
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

NOTE 3 - STOCK-BASED COMPENSATION

 

Employee Stock Purchase Plan

 

Under the Company’s Employee Stock Purchase Plan (“ESPP”), employees are able to acquire shares of common stock at 85% of the price at the end of each current quarterly plan term.  The most recent term ended September 30, 2015.  The ESPP is considered compensatory under current Internal Revenue Service rules.  At September 30, 2015, after giving effect to the shares issued as of that date, 107,916 shares remain available for purchase under the ESPP. 

 

2011 Executive Incentive Compensation Plan

 

On March 28, 2011 the Board adopted and on May 19, 2011 the Company’s shareholders approved the Company’s 2011 Executive Incentive Compensation Plan (“2011 Incentive Plan”).  The 2011 Incentive Plan authorizes incentive awards to officers, key employees and non-employee directors in the form of options (incentive and non-qualified), stock appreciation rights, restricted stock, restricted stock units, performance stock units (“deferred stock”), performance cash units, and other awards in stock, cash, or a combination of stock and cash.  On May 21, 2015, the Company’s shareholders approved an amendment to the 2011 Incentive Plan to increase the authorized shares by 1,000,000 to 2,000,000.  As a result, up to 2,000,000 shares of our common stock may be issued pursuant to awards under the 2011 Incentive Plan, as amended

 

During 2015, stock options covering 248,258 shares have been awarded to key executive employees and directors. These options expire seven years from the date of award and vest 25% each year beginning one year after the date of award.  The Company also granted deferred stock awards of 100,017 shares to key employees during the first quarter of 2015 under the Company’s long-term incentive plan for performance over the 2015 to 2017 period. The actual number of shares of deferred stock, if any, that are ultimately earned by the respective employees will be determined based on achievement against performance goals for each of the three years ending December 31, 2017 and the shares earned will be issued in the first quarter of 2018 to those key employees still with the Company at that time. 

 

At September 30, 2015, 106,465 shares have been issued under the 2011 Incentive Plan, 842,082 shares are subject to currently outstanding options, deferred stock awards, and unvested restricted stock units, and 1,051,453 shares are eligible for grant under future awards.

 

 

Stock Option Plan for Directors

 

Shares of common stock are reserved for issuance to non-employee directors under options granted by the Company prior to 2011 under its Stock Option Plan for Non-Employee Directors (the “Director Plan”).  Under the Director Plan nonqualified stock options to acquire shares of common stock were automatically granted to each non-employee director concurrent with annual meetings of shareholders in 2010 and earlier years, with the exercise price of options granted being the fair market value of the common stock on the date of the respective shareholder meetings.  Options granted under the Director Plan expire 10 years from date of grant. No options were granted under the Director Plan in 2014 or 2015The Company amended the Director Plan in May 2011 to prohibit future option grants.

 

1992 Stock Plan

 

Under the Company’s 1992 Stock Plan (“the Stock Plan”), shares of common stock may be issued pursuant to stock options, restricted stock or deferred stock grants to officers and key employees.  Exercise prices of stock options under the Stock Plan cannot be less than fair market value of the stock on the date of grant.  Rules and conditions governing awards of stock options, restricted stock and deferred stock are determined by the Compensation Committee of the Board of Directors, subject to limitations in the Stock PlanThe Company amended the Stock Plan in 2011 to prohibit future stock options or other equity awards.

 

At September 30, 2015, after reserving for stock options and deferred stock awards granted in prior years and adjusting for forfeitures and issuances during the year, there were 22,008 shares reserved for issuance under the Stock Plan. The Company has not awarded stock options or deferred stock under the Stock Plan since 2011.

 

Changes in Stock Options Outstanding

 

The following table summarizes changes in the number of outstanding stock options under the 2011 Incentive Plan, the Director Plan and Stock Plan over the period December 31, 2014 to September 30, 2015:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average

 

Weighted average

 

 

 

exercise price

 

remaining

 

Options

 

per share

 

contractual term

Outstanding – December 31, 2014

540,404 

 

$

 

11.90 

 

5.13 

Awarded

248,258 

 

 

 

11.31 

 

 

Exercised

(12,000)

 

 

 

11.05 

 

 

Forfeited

(53,522)

 

 

 

12.19 

 

 

Outstanding – September 30, 2015

723,140 

 

 

 

11.70 

 

5.14 

 

 

 

 

 

 

 

 

Exercisable at September 30, 2015

297,439 

 

$

 

11.73 

 

3.84 

Expected to vest September 30, 2015

723,140 

 

 

 

11.70 

 

5.14 

 

The aggregate intrinsic value of all options (the amount by which the market price of the stock on the last day of the period exceeded the market price of the stock on the date of grant) outstanding at September 30, 2015 was $0.  The intrinsic value of all options exercised during the nine months ended September 30, 2015 was $10,000. Net cash proceeds from the exercise of all stock options were $0 and $99,000 for the nine months ended September 30, 2015 and 2014.

 

Changes in Deferred Stock Outstanding

 

The following table summarizes the changes in the number of deferred stock shares under the Stock Plan and 2011 Incentive Plan over the period December 31, 2014 to September 30, 2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

 

 

 

 

Grant Date

 

 

 

Shares

 

Fair Value

Outstanding – December 31, 2014

 

 

161,314 

 

$

10.87 

Granted

 

 

101,517 

 

 

11.57 

Vested

 

 

(17,940)

 

 

12.45 

Forfeited

 

 

(22,571)

 

 

10.63 

Outstanding – September 30, 2015

 

 

222,320 

 

 

11.08 

 

Changes in Restricted Stock Units Outstanding

 

The following table summarizes the changes in the number of restricted stock units under the 2011 Incentive Plan over the period December 31, 2014 to September 30, 2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

 

 

 

 

Grant Date

 

 

 

Shares

 

Fair Value

Outstanding – December 31, 2014

 

 

39,151 

 

$

10.67 

Granted

 

 

20,979 

 

 

11.06 

Issued

 

 

(27,314)

 

 

10.08 

Forfeited

 

 

 -

 

 

 -

Outstanding – September 30, 2015

 

 

32,816 

 

 

11.41 

 

Compensation Expense

 

Share-based compensation expense recognized for the nine-month period ended September 30, 2015 was $701,000 before income taxes and $456,000 after income taxes. Share-based compensation expense recognized for the nine-month period ended September 30,  2014 was $519,000 before income taxes and $337,000 after income taxes.  Unrecognized compensation expense for the Company’s plans was $928,000 at September 30, 2015 and is expected to be recognized over a weighted-average period of 2.3 years.  Excess tax benefits from the exercise of stock options and issuance of stock included in financing cash flows for the nine month periods ended September 30, 2015 and 2014 were $88,000 and $67,000, respectively. Share-based compensation expense is recorded as a part of selling, general and administrative expenses.


Inventories
v5.13.55.0
Inventories
9 Months Ended
Sep. 30, 2015
Inventories [Abstract]  
Inventories

NOTE 4 - INVENTORIES

 

Inventories summarized below are priced at the lower of first-in, first-out cost or market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30

 

December 31

 

 

2015

 

2014

Finished goods

 

$         

15,688,000 

 

$

19,208,000 

Raw and processed materials

 

 

10,233,000 

 

 

11,902,000 

 

 

$

25,921,000 

 

$

31,110,000 

 


Acquisition
v5.13.55.0
Acquisition
9 Months Ended
Sep. 30, 2015
Acquisition [Abstract]  
Acquisition

NOTE 5 – ACQUISITION

 

On June 1, 2015, the Company acquired all of the shares of Twisted Technologies, Inc. (“Twisted Technologies”). The purchase price was $1,463,000, with cash acquired totaling $83,000. The purchase price includes initial consideration of $1,000,000, deferred consideration of $300,000 to be paid out on March 31, 2016, and $163,000 in estimated contingent consideration. The Company has agreed to pay consideration contingent upon the Twisted Technologies business meeting revenue targets over a three-year period, with the consideration to be paid after each annual period has lapsed.  The Company has recognized $163,000 as the estimated fair value of the contingent consideration at the date of acquisition. The maximum payout is not limited. At September 30, 2015, the Company had estimated liabilities of $434,000 related to these outstanding deferred and contingent consideration payments.

 

The assets and liabilities of Twisted Technologies were recorded in the consolidated balance sheet within the JDL Technologies segment at September 30, 2015. The purchase price allocation was based on estimates of the fair value of assets acquired and liabilities assumed and included total assets of $1,591,000, including goodwill of $1,463,000, and total liabilities of $128,000.  The entire goodwill balance is deductible for tax purposes.  The pro forma impact of Twisted Technologies was not significant to the Company’s results for the three and nine months ended September 30, 2015.

 


Goodwill And Intangible Assets
v5.13.55.0
Goodwill And Intangible Assets
9 Months Ended
Sep. 30, 2015
Goodwill And Intangible Assets [Abstract]  
Goodwill And Intangible Assets

NOTE 6  –GOODWILL AND INTANGIBLE ASSETS

 

The changes in the carrying amount of goodwill for the nine months ended September 30, 2015 by segment are as follows: 

 

 

 

 

 

 

 

 

 

 

 

JDL

 

 

 

 

January 1, 2015

 

$

-

 

 

 

 

Goodwill acquired

 

 

1,463,000

 

 

 

 

September 30, 2015

 

$

1,463,000

 

 

 

 

Gross goodwill

 

 

1,463,000

Accumulated impairment loss

 

 

 

Balance at September 30, 2015

 

$

1,463,000

 

 

The Company’s identifiable intangible assets with finite lives are being amortized over their estimated useful lives and were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2015

 

 

Gross Carrying Amount

Accumulated Amortization

Foreign Currency Translation

Net

 

 

 

 

 

 

Trademarks

 

91,000 
(46,000)
(6,000)
39,000 

Customer relationships

 

491,000 
(190,000)
(36,000)
265,000 

Technology

 

229,000 
(177,000)
(17,000)
35,000 

 

 

811,000 
(413,000)
(59,000)
339,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

 

Gross Carrying Amount

Accumulated Amortization

Foreign Currency Translation

Net

 

 

 

 

 

 

Trademarks

 

91,000 
(38,000)
(4,000)
49,000 

Customer relationships

 

491,000 
(159,000)
(26,000)
306,000 

Technology

 

229,000 
(149,000)
(11,000)
69,000 

 

 

811,000 
(346,000)
(41,000)
424,000 

 

Amortization expense on these identifiable intangible assets was $76,000 and $81,000 for the nine-month periods ended September 30, 2015 and 2014, respectively. The amortization expense is included in selling, general and administrative expenses. At September 30, 2015, the estimated future amortization expense for definite-lived intangible assets for the remainder of 2015 and all of the following four fiscal years is as follows:

 

 

 

 

 

 

 

 

 

Year Ending December 31: