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Intangible Assets Including Goodwill (Notes)
 9 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Including Goodwill Intangible Assets Including Goodwill
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, 2019
$
24,830

 
$
30,829

 
$
16,736

 
$
20,973

 
$
93,368

Goodwill impairment
(24,900
)
 
—

 
—

 
(7,981
)
 
(32,881
)
Translation adjustment(1)
70

 
—

 
(247
)
 
(33
)
 
(210
)
Net balance at March 31, 2020
$
—

 
$
30,829

 
$
16,489

 
$
12,959

 
$
60,277

 
 
 
 
 
(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 Company tests its goodwill for impairment annually in May. However, during the third quarter the Company concluded that goodwill impairment indicators existed based on the uncertainties caused by the COVID-19 pandemic and the significant decline in the price of crude oil. These uncertainties have resulted in lowered revenue expectations for the remainder of fiscal 2020 and fiscal 2021 and led to significant volatility in the Company's stock price. Accordingly, the Company performed an interim test as of March 31, 2020, which did not result in any impairments. While near-term revenue expectations were reduced, the Company also projected significant reductions in its cost structure. As of March 31, 2020, there were three reporting units with goodwill totaling $14.1 million that had low headroom, which we define as the percentage difference between the fair value of a reporting unit and its carrying value.
Our financial projections were based on the current assessment of our markets. Our markets are at historically volatile levels and future developments are difficult to predict. If the markets that impact our business continue to deteriorate, particularly in the reporting units mentioned above, the Company could recognize a significant goodwill impairment.
In the second quarter, the Company concluded that a goodwill impairment indicator existed in the Electrical Infrastructure segment based on the recent history of depressed gross margins and the second quarter’s downward acceleration of revenue and gross margin. Accordingly, the Company performed an interim impairment test as of December 31, 2019, reflecting updated revenue and gross margin assumptions, and concluded that the reporting unit's $24.9 million of goodwill was fully impaired.
Additionally, in December 2019, the Company concluded that a goodwill impairment indicator existed for an Industrial segment reporting unit based on several second quarter events. These events included the deterioration of the relationship with a significant customer in the iron and steel industry in the second quarter. As a result, the customer canceled other previously awarded work and the Company is expecting little to no business from this customer in the foreseeable future. Accordingly, the Company performed an interim impairment test as of December 31, 2019 and concluded that the reporting unit's $8.0 million of goodwill was fully impaired. The remaining goodwill in the Industrial segment is related to a separate reporting unit that serves a broader customer base beyond iron and steel.
The estimated fair value of each reporting unit was derived primarily by utilizing a discounted cash flow analysis. The key assumptions used are described in Part II, Item 8. Financial Statements and Supplementary Data, Note 1 - Summary of Significant Accounting Policies, Goodwill in our fiscal 2019 Annual Report on Form 10-K.
Other Intangible Assets
In December 2019, in connection with the factors disclosed for the Industrial segment goodwill impairment above, the Company fully impaired a customer relationship with a net book value of $5.6 million and a remaining useful life of 9 years.  This intangible asset had a gross carrying amount of $9.4 million and accumulated amortization of $3.8 million. The impairment is included within the goodwill and other intangible asset impairment caption in the condensed consolidated statements of income.
Information on the carrying value of other intangible assets is as follows:
 
 
 
At March 31, 2020
  
Useful Life
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
 
(Years)
 
(In thousands)
Intellectual property
10 to 15
 
$
2,579

 
$
(1,912
)
 
$
667

Customer-based
6 to 15
 
28,861

 
(18,414
)
 
10,447

Non-compete agreements
4
 
1,453

 
(1,453
)
 
—

Total amortizing intangible assets
 
 
$
32,893

 
$
(21,779
)
 
$
11,114

 
 
 
 
At June 30, 2019
 
Useful Life
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
 
(Years)
 
(In thousands)
Intellectual property
10 to 15
 
$
2,579

 
$
(1,779
)
 
$
800

Customer-based
6 to 15
 
38,572

 
(19,915
)
 
18,657

Non-compete agreements
4
 
1,453

 
(1,438
)
 
15

Total amortizing intangible assets
 
 
$
42,604

 
$
(23,132
)
 
$
19,472


Amortization expense totaled $0.8 million and $2.7 million during the three and nine months ended March 31, 2020 and $0.8 million and $2.5 million for the three and nine months ended March 31, 2019, respectively.

We estimate that the remaining amortization expense related to March 31, 2020 amortizing intangible assets will be as follows (in thousands):
Period ending:
 
Remainder of Fiscal 2020
$
772

Fiscal 2021
3,085

Fiscal 2022
2,266

Fiscal 2023
1,819

Fiscal 2024
1,506

Fiscal 2025
1,111

Thereafter
555

Total estimated remaining amortization expense at March 31, 2020
$
11,114