GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

NOTE 6 GOODWILL AND INTANGIBLE ASSETS

Goodwill

All of our goodwill is within our H&P Technologies reportable segment. The following is a summary of changes in goodwill (in thousands):

September 30, 2017	$	51,705
Additions	17,791
Impairment	(4,719		)
September 30, 2018	64,777
Additions	18,009
September 30, 2019	$	82,786

Intangible Assets

Intangible assets arising from business acquisitions consisted of the following:

		September 30, 2019						September 30, 2018
(in thousands)	Weighted Average Estimated Useful Lives	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Finite-lived intangible asset:
Developed technology	15 years	$	89,096	$	10,256	$	78,840	$	70,000	$	5,589	$	64,411
Trade name	20 years	5,865		522		5,343		5,700		237		5,463
Customer relationships	5 years	4,000		1,467		2,533		4,000		667		3,333
		$	98,961	$	12,245	$	86,716	$	79,700	$	6,493	$	73,207

Amortization expense in the Consolidated Statements of Operations was $5.8 million, $5.4 million and $1.1 million for fiscal years 2019, 2018 and 2017, respectively, and is estimated to be $7.0 million for each of the next three succeeding fiscal years, approximately $6.4 million for fiscal year 2023 and approximately $6.2 million for fiscal year 2024.

Impairments

During the fourth quarter of fiscal year 2018, and as part of our annual goodwill impairment test, we performed a detailed assessment of the TerraVici reporting unit, where $4.7 million of goodwill was allocated. We determined that the estimated fair value of this reporting unit was less than its carrying amount and we recorded goodwill impairment losses of $4.7 million ($3.5 million, net of tax, or $0.03 per diluted share).  In addition, we recorded an intangible assets impairment loss of $0.9 million ($0.7 million net of tax, or $0.01 per diluted share). These impairment losses are included in Asset Impairment Charge on the Consolidated Statements of Operations for the fiscal year ended September 30, 2018. Our goodwill impairment analysis performed on our remaining technology reporting units in the fourth quarter of fiscal year 2018 did not result in an impairment charge.

Beginning October 1, 2018, the goodwill associated with our technology reporting units were combined into one reporting unit, H&P Technologies. Our goodwill impairment analysis performed in the fourth quarter fiscal year of 2019 indicated that the fair value of the H&P Technologies reporting unit exceeded its carrying value. Therefore, no goodwill impairment was recognized.