GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill activity for each of the Company’s reportable segments for the years ended September 30, 2020 and 2019 is shown below:

	Electronic Materials		Performance Materials		Total
Balance at September 30, 2018	$	96,083	$	5,000	$	101,083
Foreign currency translation impact	(3,145)		4		(3,141)
Goodwill arising from the Acquisition	259,859		352,270		612,129
Balance at September 30, 2019	$	352,797	$	357,274	$	710,071
Foreign currency translation impact	7,628		(257)		7,371
Other	—		1,205		1,205
Balance at September 30, 2020	$	360,425	$	358,222	$	718,647

The components of other intangible assets are as follows:

	September 30, 2020						September 30, 2019
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Other intangible assets subject to amortization:
Customer relationships, trade names, and distribution rights	$	690,716	$	140,037	$	550,679	$	684,764	$	64,471	$	620,293
Product technology, trade secrets and know-how	122,135		49,228		72,907		123,948		37,993		85,955
Acquired patents and licenses	8,921		8,713		208		9,023		8,397		626
Total other intangible assets subject to amortization	821,772		197,978		623,794		817,735		110,861		706,874
Other intangible assets not subject to amortization:
Other indefinite-lived intangibles*	47,170		—		47,170		47,170		—		47,170
Total other intangible assets not subject to amortization	47,170		—		47,170		47,170		—		47,170
Total other intangible assets	$	868,942	$	197,978	$	670,964	$	864,905	$	110,861	$	754,044

*Other indefinite-lived intangibles not subject to amortization primarily consist of trade names.

	Gross Carrying Amount
	Balance at September 30, 2019		Impairment1		FX and Other		Balance at September 30, 2020		Accumulated Amortization		Net at September 30, 2020
Other intangible assets subject to amortization:
Customer relationships, trade names, and distribution rights	$	684,764	$	(1,419)	$	7,371	$	690,716	$	140,037	$	550,679
Product technology, trade secrets and know-how	123,948		(343)		(1,470)		122,135		49,228		72,907
Acquired patents and licenses	9,023		(102)		—		8,921		8,713		208
Total other intangible assets subject to amortization	817,735		(1,864)		5,901		821,772		197,978		623,794
Other intangible assets not subject to amortization:
Other indefinite-lived intangibles*	47,170		—		—		47,170		—		47,170
Total other intangible assets not subject to amortization	47,170		—		—		47,170		—		47,170
Total other intangible assets	$	864,905	$	(1,864)	$	5,901	$	868,942	$	197,978	$	670,964

1 Refer to Note 10 of this Annual Report on Form 10-K for additional information regarding the impairment.

Amortization expense was $85,557, $59,931 and $7,495 for fiscal 2020, 2019 and 2018, respectively.  Estimated future amortization expense of intangible assets as of September 30, 2020 for the five succeeding fiscal years is as follows:

Fiscal Year	Estimated Amortization Expense
2021	$81,985
2022	74,695
2023	62,879
2024	55,664
2025	50,526

As of September 30, 2020, the estimated fair value of the PIM reporting unit exceeded the carrying value by approximately 8% and no impairment was recognized. In estimating the fair value, the Company used the average of a discounted cash flows model and a market approach based on earnings before interest, taxes, and depreciation for a group of guideline comparable companies. The most significant estimates and assumptions inherent in the discounted cash flows model are the forecasted revenue growth rate, forecasted gross margin, the discount rate and the terminal growth rate. These assumptions are classified as level 3 inputs. The Company’s projections for revenue and gross margin are based on the Company’s multiyear forecast which reflects a recovery from the COVID-19 pandemic (“Pandemic”) during the forecast period. The discount rate was based on an estimated weighted average cost of capital (“WACC”) for the PIM reporting unit. The components of WACC are the cost of equity and the cost of debt, each of which requires judgment by management to estimate. The company developed its cost of equity estimate based on perceived risks and predictability of future cash flows.

The extent to which the Pandemic or future geopolitical events in the oil and gas industry may further impact our PIM business, operations, results of operations and financial condition is uncertain and difficult to estimate, however the impact could negatively affect future revenue and gross margin. The carrying value of the PIM reporting unit includes $318.2 million of goodwill and $46.0 million of trade-name intangible assets. Potential future impairments could be material to the Company’s Consolidated Balance Sheets and to the Consolidated Statements of Income, but we do not expect them to affect the Company’s reported Net cash provided by operating activities. No impairment charges to goodwill were recognized in any periods presented.