Goodwill and Other Intangible Assets

12 Months Ended

Sep. 30, 2011

Goodwill and Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets

E.    Goodwill and Other Intangible Assets

Our intangible assets consist of (1) goodwill, which is not being amortized, and (2) customer relationships (15 years), trademarks (15 years), trade names (10 years), non-compete agreements (5 years), a supply agreement (15 years) and purchased technologies (6 to 7 years) which are amortized over their estimated useful lives. We test for impairment of goodwill annually, or immediately if conditions indicate that impairment could exist.

During the year ended September 30, 2010, we acquired intangible assets and recorded goodwill in connection with our acquisition of Powell Canada and our acquisition of a 50% interest in the operations of a joint venture in Kazakhstan. See Note D for additional information regarding the acquisition. During fiscal year 2010, our impairment analyses for goodwill indicated that an impairment was required. A loss on impairment of $7.5 million was recorded in fiscal year 2010 related to the Powell Canada acquisition. Our strategic decision to exit the 50% owned joint venture in Kazakhstan and delays in the anticipated growth in capital investments in the Oil Sands Region of western Canada, relative to our expectations, resulted in the impairment charge. No impairment was identified as a result of performing our annual impairment test of goodwill for fiscal years 2011 or 2009.

Goodwill consisted of the following at September 30, 2011 and September 30, 2010 (in thousands):

	September 30, 2011			September 30, 2010
Goodwill	$	8,183		$	8,183
Accumulated impairment loss		(7,452	)		(7,452	)
Foreign currency translation		272			272
Goodwill, net	$	1,003		$	1,003

During fiscal year 2011, our impairment analysis indicated that the non-compete agreements, trade name and customer relationships intangible assets related to the Powell Canada acquisition were impaired due to continued operating losses at Powell Canada, which have reduced our projections for future revenues and cash flows. Accordingly, we recognized a loss on impairment of $7.2 million.

Intangible assets balances, subject to amortization, at September 30, 2011 and September 30, 2010 consisted of the following (in thousands):

	September 30, 2011									September 30, 2010
	Gross Carrying Value			Accumulated Amortization			Net Carrying Value			Gross Carrying Value			Accumulated Amortization			Net Carrying Value
Supply agreement
Balance, beginning of period	$	17,580		$	(4,881	)	$	12,699		$	17,580		$	(3,709	)	$	13,871
Amortization		—			(1,171	)		(1,171	)		—			(1,172	)		(1,172	)
Balance, end of period	$	17,580		$	(6,052	)	$	11,528		$	17,580		$	(4,881	)	$	12,699
Purchased technology
Balance, beginning of period	$	10,272		$	(6,318	)	$	3,954		$	10,387		$	(5,053	)	$	5,334
Acquisition		1,500			—			1,500			—			—			—
Amortization		—			(1,689	)		(1,689	)		—			(1,347	)		(1,347	)
Foreign currency translation		(25	)		248			223			(115	)		82			(33	)
Balance, end of period	$	11,747		$	(7,759	)	$	3,988		$	10,272		$	(6,318	)	$	3,954
Non-compete agreements
Balance, beginning of period	$	5,365		$	(3,666	)	$	1,699		$	4,170		$	(2,643	)	$	1,527
Acquisition		—			—			—			1,160			—			1,160
Amortization		—			(920	)		(920	)		—			(1,018	)		(1,018	)
Foreign currency translation		(35	)		—			(35	)		35			(5	)		30
Impairment (a)		(1,160	)		416			(744	)		—			—			—
Balance, end of period	$	4,170		$	(4,170	)	$	—		$	5,365		$	(3,666	)	$	1,699
Trade name
Balance, beginning of period	$	5,437		$	(938	)	$	4,499		$	1,147		$	(573	)	$	574
Acquisition		—			—			—			4,215			—			4,215
Amortization		—			(583	)		(583	)		—			(414	)		(414	)
Foreign currency translation		(124	)		(1	)		(125	)		75			49			124
Impairment (a)		(4,215	)		755			(3,460	)		—			—			—
Balance, end of period	$	1,098		$	(767	)	$	331		$	5,437		$	(938	)	$	4,499
Customer relationships
Balance, beginning of period	$	3,479		$	(198	)	$	3,281		$	—		$	—		$	—
Acquisition		—			—			—			3,376			—			3,376
Amortization					(205	)		(205	)		—			(178	)		(178	)
Foreign currency translation		(103	)		—			(103	)		103			(20	)		83
Impairment (a)		(3,376	)		403			(2,973	)		—			—			—
Balance, end of period	$	—		$	—		$	—		$	3,479		$	(198	)	$	3,281
Total	$	34,595		$	(18,748	)	$	15,847		$	42,133		$	(16,001	)	$	26,132

(a) Represents the $7.2 million impairment charge recorded in fiscal 2011 related to the intangible assets of Powell Canada.

All goodwill and intangible assets disclosed above are reported in our Electrical Power Products business segment.

Amortization of intangible assets recorded for the years ended September 30, 2011, 2010 and 2009, was $4.8 million, $4.5 million and $3.5 million, respectively.

Estimated amortization expense for each of the five subsequent fiscal years is expected to be (in thousands):

Years Ending September 30,	Total
2012	$	2,772
2013		2,401
2014		1,665
2015		1,643
2016		1,575