Intangible Assets Including Goodwill (Notes)

9 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying value of goodwill by segment are as follows:



	Electrical Infrastructure			Oil Gas & Chemical		Storage Solutions			Industrial			Total
	(In thousands)
Net balance at June 30, 2016	$	42,170		$	14,008	$	16,681		$	5,434		$	78,293
Purchase of Houston Interests (Note 2)	—			28,739		—			6,309			35,048
Purchase price adjustment for BTE (Note 2)	—			—		88			—			88
Translation adjustment (1)	(175		)	—		(39		)	(33		)	(247		)
Net balance at March 31, 2017	$	41,995		$	42,747	$	16,730		$	11,710		$	113,182


(1)	The translation adjustments relate to the periodic translation of Canadian Dollar and South Korean Won denominated goodwill recorded as a part of prior acquisitions in Canada and South Korea, in which the local currency was determined to be the functional currency.

The goodwill allocation attributable to the purchase of Houston Interests is preliminary. The Company is currently evaluating the long-term value by segment and the allocation may be adjusted upon completion of the evaluation, which is expected to occur in the fourth fiscal quarter.

The Company performed its annual goodwill impairment test as of May 31, 2016, which did not indicate the existence of an impairment at that time. While the fiscal year-to-date financial performance of our Electrical Infrastructure, Oil Gas & Chemical and Industrial segments are disappointing and have not met our expectations, the Company does not consider these results to be a triggering event requiring the performance of an interim goodwill impairment test. We believe the financial performance of our Oil Gas & Chemical and Industrial segments is attributable to a cyclical, rather than structural, slowdown in the business and the financial performance of our Electrical Infrastructure segment is attributable to issues relating to one major project (as discussed in Note 3 - Uncompleted Contracts). The Company continues to consider these segments as core to its business and believes current operating results are not indicative of future performance. The Company will continue to monitor its operating results for indicators of impairment and perform additional tests as necessary. The Company's fiscal 2017 annual impairment test will be performed as of May 31, 2017, which could result in an impairment to goodwill depending on the Company’s finalized forecast for fiscal 2018 and other market conditions.

Other Intangible Assets

Information on the carrying value of other intangible assets is as follows:



		At March 31, 2017
	Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(Years)	(In thousands)
Intellectual property	9 to 15	$	2,579	$	(1,380	)	$	1,199
Customer-based	1 to 15	38,094		(12,209		)	25,885
Non-compete agreements	4 to 5	1,453		(1,245		)	208
Trade names	1 to 3	1,795		(1,306		)	489
Total amortizing intangible assets		$	43,921	$	(16,140	)	$	27,781



		At June 30, 2016
	Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(Years)	(In thousands)
Intellectual property	9 to 15	$	2,579	$	(1,246	)	$	1,333
Customer-based	1.5 to 15	28,179		(9,655		)	18,524
Non-compete agreements	4 to 5	1,453		(1,102		)	351
Trade names	3 to 5	1,615		(824		)	791
Total amortizing intangible assets		$	33,826	$	(12,827	)	$	20,999

The increase in the gross carrying amount of other intangible assets at March 31, 2017 compared to June 30, 2016 is primarily due to the December 12, 2016 acquisition of Houston Interests (See Note 2). The specifically identifiable intangible assets recognized in the Houston Interests acquisition consist of:


•	customer-based intangibles with a fair value of $10.0 million and useful life of between 1 and 9 years; and


•	trade name with a fair value of $0.2 million and useful life of 1 year.

Amortization expense totaled $1.6 million and $3.4 million during the three and nine months ended March 31, 2017, respectively, and $1.0 million and $2.6 million during the three and nine months ended March 31, 2016, respectively. The Company recognized $0.7 million and $0.9 million of amortization expense during the three and nine months ended March 31, 2017 for intangible assets recorded as part of the Houston Interests acquisition.

We estimate that the remaining amortization expense related to March 31, 2017 amortizing intangible assets will be as follows (in thousands):



Period ending:
Remainder of Fiscal 2017	$	1,543
Fiscal 2018	4,728
Fiscal 2019	3,487
Fiscal 2020	3,477
Fiscal 2021	3,459
Fiscal 2022	2,616
Thereafter	8,471
Total estimated remaining amortization expense at March 31, 2017	$	27,781

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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