Rendering

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Network
128 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
(http://www.cuiglobal.com/role/SummaryOfSignificantAccountingPoliciesTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis]0001108967 (http://www.sec.gov/CIK)
Accounting Policies [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Accounting Policies [Abstract]
 
Summary of Unaudited Financial Statements of Affiliate
Presented below are the equity method earnings through nine months ended September 30, 2015 and for the year ended December 31, 2014 - the periods that CUI Global had significant influence over TPI:
 
 
 
For the
 
 
 
 
 
Nine Months
 
For the Year
 
 
 
Ended
 
Ended
 
 
 
September
 
December
 
(in thousands)
 
30,
 
31,
 
 
 
2015
 
2014
 
Revenues
 
$
10,718
 
$
14,468
 
Operating income
 
 
674
 
 
872
 
Net profit
 
 
621
 
 
767
 
Other comprehensive profit (loss):
 
 
 
 
 
 
 
Foreign currency translation adjustment
 
 
—
 
 
—
 
Comprehensive net profit
 
$
621
 
$
767
 
Company share of Net Profit
 
$
53
 
$
49
 
  
Schedule of Allowance for Doubtful Accounts
  Activity in the allowance for doubtful accounts for the years ended December 31, 2016, 2015 and 2014 is as follows:
 
(in thousands)
 
Year ended December 31,
 
 
 
2016
 
2015
 
2014
 
Allowance for doubtful accounts, beginning of year
 
$
90
 
$
254
 
$
285
 
Charge to costs and expenses
 
 
93
 
 
192
 
 
(91)
 
Deductions
 
 
(32)
 
 
(356)
 
 
60
 
Allowance for doubtful accounts, end of year
 
$
151
 
$
90
 
$
254
 
  
Schedule of Inventory, Current
Inventory by category at December 31, 2016 and December 31, 2015 consists of:
 
(in thousands)
 
 
December 31, 2016
 
December 31, 2015 (1)
 
Finished goods
 
$
9,684
 
$
8,278
 
Raw materials
 
 
3,357
 
 
3,637
 
Work-in-process
 
 
935
 
 
889
 
Inventory reserves
 
 
(774)
 
 
(483)
 
Total inventories
 
$
13,202
 
$
12,321
 
 
(1) At December 31, 2015, CUI-Canada inventory reserves of $97 thousand were reclassified from raw materials to inventory reserves and $246 thousand of prepaid expenses at CUI Inc. were reclassified to raw materials inventory.
  
Schedule of Inventory Reserve
Activity in inventory reserves for the years ended December 31, 2016, 2015 and 2014 is as follows:
 
(in thousands)
 
Year ended December 31,
 
 
 
2016
 
2015
 
2014
 
Inventory reserves, beginning of year
 
$
483
 
$
394
 
$
550
 
Charge to costs and expenses
 
 
312
 
 
94
 
 
(148)
 
Deductions
 
 
(21)
 
 
(5)
 
 
(8)
 
Inventory reserves, end of year
 
$
774
 
$
483
 
$
394
 
  
Estimated Useful Lives and Accumulated Depreciation for Furniture, Equipment and Software
The estimated useful lives for buildings, improvements, furniture, vehicles, and equipment are as follows:
 
 
 
Estimated
Useful
Life
Buildings and improvements
 
5 to 39 years
Furniture and equipment
 
3 to 10 years
Vehicles
 
3 to 5 years
  
Schedule of Estimated Useful Life
The following are the estimated useful life for the intangible assets:
 
 
Estimated
 
Useful
 
Life
Finite-lived intangible assets
 
Order backlog
2 years
Trade name - Orbital
10 years
Trade name - V-Infinity
5 years
Trade name - CUI-Canada
3 years
Customer list – Orbital
10 years
Customer list – CUI-Canada
7 years
Technology rights
20 years (1)
Technology-Based Asset - Know How
12 years
Technology-Based Asset - Software
10 years
Technology-Based Asset - Power
7 years
Software
3 to 5 years (2)
Patents
See endnote (3)
Other intangible assets
See endnote (4)
 
 
Indefinite-lived intangible assets
 
Trade name – CUI
See endnote (5)
Customer list – CUI
See endnote (5)
Patents pending technology
See endnote (5)
 
(1)
Technology rights are amortized over a 20-year life or the term of the rights agreement.
 
(2)
Software assets are recorded at cost and include major expenditures, which increase productivity or substantially increase useful lives.
 
(3)
Patents are amortized over the life of the patent. Any patents not approved will be expensed at that time.
 
(4)
Other intangible assets are amortized over an appropriate useful life, as determined by management in relation to the other intangible asset characteristics.
 
(5)
Indefinite-lived intangible assets are reviewed annually for impairment and when circumstances suggest.
  
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The following table summarizes the number of stock options outstanding excluding amounts applicable to contingent conversion option at December 31, 2016, 2015 and 2014, which may dilute future earnings per share.
 
 
 
2016
 
 
2015
 
 
2014
 
Options, outstanding
 
 
966,681
 
 
 
970,847
 
 
 
998,432
 
  
Computation of basic and diluted earnings per share
The following is the calculation of basic and diluted earnings per share for the three years ended December 31, 2016, 2015, and 2014.
 
(in thousands except share and per share amounts)
 
 
 
 
 
 
 
 
 
 
 
2016
 
 
2015
 
 
2014
 
Net loss
 
$
(7,266)
 
 
$
(5,987)
 
 
$
(2,801)
 
Basic and diluted weighted average number of shares outstanding
 
 
20,897,812
 
 
 
20,792,494
 
 
 
20,658,634
 
Basic loss per common share
 
$
(0.35)
 
 
$
(0.29)
 
 
$
(0.14)
 
Diluted loss per common share
 
$
(0.35)
 
 
$
(0.29)
 
 
$
(0.14)
 
  
Schedule Of Segment Activity
The following information represents segment activity as of and for the year ended December 31, 2016:
 
(in thousands)
 
Power and
 
 
 
 
 
 
 
 
 
 
 
 
Electro- 
 
 
 
 
 
 
 
 
 
 
 
 
Mechanical
 
 
Energy
 
 
Other
 
 
Total
 
Revenues from external customers
 
$
58,403
 
 
$
28,058
 
 
$
—
 
 
$
86,461
 
Depreciation and amortization (1)
 
 
1,445
 
 
 
1,401
 
 
 
2
 
 
 
2,848
 
Interest expense
 
 
221
 
 
 
6
 
 
 
240
 
 
 
467
 
Income (loss) from operations
 
 
645
 
 
 
(1,676)
 
 
 
(5,479)
 
 
 
(6,510)
 
Segment assets
 
 
49,830
 
 
 
29,632
 
 
 
381
 
 
 
79,843
 
Other intangibles assets, net
 
 
9,262
 
 
 
6,939
 
 
 
—
 
 
 
16,201
 
Goodwill
 
 
13,083
 
 
 
7,042
 
 
 
—
 
 
 
20,125
 
Expenditures for segment assets (2)
 
 
1,032
 
 
 
642
 
 
 
—
 
 
 
1,674
 
 
The following information represents segment activity as of and for the year ended December 31, 2015:
 
(in thousands)
 
Power and
 
 
 
 
 
 
 
 
 
 
 
 
Electro-
 
 
 
 
 
 
 
 
 
 
 
 
Mechanical
 
 
Energy
 
 
Other
 
 
Total
 
Revenues from external customers
 
$
58,037
 
 
$
28,203
 
 
$
—
 
 
$
86,240
 
Depreciation and amortization (1)
 
 
1,258
 
 
 
1,945
 
 
 
6
 
 
 
3,209
 
Earnings on equity method investment
 
 
53
 
 
 
—
 
 
 
—
 
 
 
53
 
Interest expense
 
 
226
 
 
 
4
 
 
 
211
 
 
 
441
 
Income (loss) from operations
 
 
2,856
 
 
 
(3,915)
 
 
 
(4,635)
 
 
 
(5,694)
 
Segment assets
 
 
51,600
 
 
 
37,029
 
 
 
2,219
 
 
 
90,848
 
Other intangibles assets, net
 
 
9,577
 
 
 
9,167
 
 
 
2
 
 
 
18,746
 
Goodwill
 
 
13,077
 
 
 
8,450
 
 
 
—
 
 
 
21,527
 
Expenditures for segment assets (2)
 
 
859
 
 
 
4,314
 
 
 
—
 
 
 
5,173
 
 
The following information represents segment activity as of and for the year ended December 31, 2014:
 
(in thousands)
 
Power and
 
 
 
 
 
 
 
 
 
 
 
 
Electro-
 
 
 
 
 
 
 
 
 
 
 
 
Mechanical
 
 
Energy
 
 
Other
 
 
Total
 
Revenues from external customers
 
$
48,675
 
 
$
27,370
 
 
$
—
 
 
$
76,045
 
Depreciation and amortization (1)
 
 
941
 
 
 
3,498
 
 
 
3
 
 
 
4,442
 
Earnings on equity method investment
 
 
49
 
 
 
—
 
 
 
—
 
 
 
49
 
Interest expense
 
 
232
 
 
 
11
 
 
 
265
 
 
 
508
 
Income (loss) from operations
 
 
4,577
 
 
 
(3,501)
 
 
 
(3,972)
 
 
 
(2,896)
 
Segment assets
 
 
44,127
 
 
 
35,010
 
 
 
13,917
 
 
 
93,054
 
Other intangibles assets, net
 
 
8,482
 
 
 
11,295
 
 
 
8
 
 
 
19,785
 
Goodwill
 
 
13,021
 
 
 
8,866
 
 
 
—
 
 
 
21,887
 
Expenditures for segment assets (2)
 
 
913
 
 
 
269
 
 
 
—
 
 
 
1,182
 
 
(1)
For the years ended December 31, 2016, 2015 and 2014, depreciation and amortization totals included $0.5 million, $0.3 million and $0.2 million, respectively that were classified as cost of revenues in the Consolidated Statements of Operations.
 
(2)
Includes purchases of property, plant and equipment and the investment in other intangible assets. Excludes amounts for the CUI – Canada, Inc. acquisition in 2015.
  
Revenue from External Customers by Geographic Areas
The following information represents revenue by country for the years ended December 31, 2016, 2015 and 2014:
 
 
 
For the Year Ended December 31
 
(in thousands)
 
2016
 
 
2015
 
 
2014
 
 
 
Amount
 
 
%
 
 
Amount
 
 
%
 
 
Amount
 
 
%
 
USA
 
$
46,514
 
 
 
54
%
 
$
46,641
 
 
 
54
%
 
$
37,051
 
 
 
49
%
United Kingdom
 
 
17,337
 
 
 
20
%
 
 
21,407
 
 
 
25
%
 
 
25,921
 
 
 
34
%
China
 
 
5,930
 
 
 
7
%
 
 
4,950
 
 
 
6
%
 
 
4,980
 
 
 
6
%
All Others
 
 
16,680
 
 
 
19
%
 
 
13,242
 
 
 
15
%
 
 
8,093
 
 
 
11
%
Total
 
$
86,461
 
 
 
100
%
 
$
86,240
 
 
 
100
%
 
$
76,045
 
 
 
100
%
  
Long-lived Assets By Geographic Areas
The following information represents long-lived assets (excluding deferred tax assets) by country as of December 31, 2016 and 2015.
 
(in thousands)
 
 
2016
 
 
2015
 
USA
 
$
28,089
 
 
$
27,400
 
United Kingdom
 
 
18,431
 
 
 
23,006
 
Other
 
 
1,205
 
 
 
2,261
 
 
 
$
47,725
 
 
$
52,667
 
  
Schedule of Consolidated Statement of Cash Flows
The impact of these reclassifications on Operating, Investing and Financing Activities in the Consolidated Statement of Cash Flows were as follows:
 
(in thousands)
 
2015
 
2015
 
2015
 
 
 
Original
 
Reclassified
 
Change
 
Operating activities
 
$
(6,259)
 
$
(6,401)
 
$
142
 
Investing activities
 
 
1,987
 
 
2,129
 
 
(142)
 
Financing activities
 
 
(113)
 
 
(113)
 
 
—
 
Effect of exchange rate changes on cash
 
 
(52)
 
 
(52)
 
 
—
 
Net (decrease) increase in cash and cash equivalents
 
$
(4,437)
 
$
(4,437)
 
$
—
 
 
(in thousands)
 
2014
 
2014
 
2014
 
 
 
Original
 
Reclassified
 
Change
 
Operating activities
 
$
(3,134)
 
$
(3,114)
 
$
(20)
 
Investing activities
 
 
(1,528)
 
 
(1,548)
 
 
20
 
Financing activities
 
 
(185)
 
 
(185)
 
 
—
 
Effect of exchange rate changes on cash
 
 
(25)
 
 
(25)
 
 
—
 
Net (decrease) increase in cash and cash equivalents
 
$
(4,872)
 
$
(4,872)
 
$
—