Intangible Assets Including Goodwill (Notes)

3 Months Ended

Sep. 30, 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, 2017	$	42,152	$	33,604	$	16,764	$	20,981	$	113,501
Translation adjustment (1)	234		—		81		44		359
Net balance at September 30, 2017	$	42,386	$	33,604	$	16,845	$	21,025	$	113,860


(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.

We performed our annual goodwill impairment test as of May 31, 2017, which resulted in no impairment. However, the aggregate difference between the fair values of our reporting units and their carrying amounts decreased significantly since the previous year's test as a result of market conditions at that time. The fair value of one reporting unit (carrying value of goodwill of $8.0 million) only exceeded its carrying amount by 9%. The valuation model for this reporting unit assumed the award of a significant project prior to the end of the second fiscal quarter, with project work to commence shortly thereafter. This project award was subsequently obtained during the first fiscal quarter of 2018, which resolved the previous contingency. In addition, operating results for the Company during the three months ended September 30, 2017, including updated forecasts for the remainder of the year, do not indicate the existence of any goodwill impairment. The Company will continue to monitor its operating results and forecasts for indicators of impairment and perform additional tests as needed.

Other Intangible Assets

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



		At September 30, 2017
	Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(Years)	(In thousands)
Intellectual property	9 to 15	$	2,579	$	(1,469	)	$	1,110
Customer-based	1 to 15	38,376		(14,913		)	23,463
Non-compete agreements	4 to 5	1,453		(1,352		)	101
Trade names	1 to 3	1,630		(1,473		)	157
Total amortizing intangible assets		$	44,038	$	(19,207	)	$	24,831



		At June 30, 2017
	Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(Years)	(In thousands)
Intellectual property	9 to 15	$	2,579	$	(1,425	)	$	1,154
Customer-based	1 to 15	38,207		(13,543		)	24,664
Non-compete agreements	4 to 5	1,453		(1,298		)	155
Trade names	1 to 3	1,630		(1,307		)	323
Total amortizing intangible assets		$	43,869	$	(17,573	)	$	26,296

Amortization expense totaled $1.6 million and $0.8 million during the three months ended September 30, 2017 and September 30, 2016, respectively.

We estimate that the remaining amortization expense related to September 30, 2017 amortizing intangible assets will be as follows (in thousands):



Period ending:
Remainder of Fiscal 2018	$	4,092
Fiscal 2019	3,522
Fiscal 2020	3,505
Fiscal 2021	3,445
Fiscal 2022	2,337
Fiscal 2023	2,045
Thereafter	5,885
Total estimated remaining amortization expense at September 30, 2017	$	24,831

- 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.

+ References + Details