Goodwill and Other Intangible Assets

12 Months Ended

Sep. 30, 2020

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

4.      Goodwill and Other Intangible Assets

Included on the Company’s Consolidated Balance Sheets at September 30, 2020 and 2019 are the following intangible assets gross carrying amounts and accumulated amortization:

(Dollars in thousands)	2020		2019
Goodwill	$	408,063	390,256
Intangible assets with determinable lives:
Patents
Gross carrying amount	$	2,092	1,945
Less: accumulated amortization		858	748
Net	$	1,234	1,197
Capitalized software
Gross carrying amount	$	84,888	78,962
Less: accumulated amortization		57,302	48,530
Net	$	27,586	30,432
Customer Relationships
Gross carrying amount	$	227,178	227,225
Less: accumulated amortization		67,643	55,326
Net	$	159,535	171,899
Other
Gross carrying amount	$	5,156	5,441
Less: accumulated amortization		3,260	2,645
Net	$	1,896	2,796
Intangible assets with indefinite lives:
Trade names	$	156,381	175,281

The Company performed its annual evaluation of goodwill and intangible assets for impairment during the fourth quarter of 2020 and concluded no impairment existed at September 30, 2020 and there are no accumulated impairment losses as of September 30, 2020.

The changes in the carrying amount of goodwill attributable to each business segment for 2020 and 2019 are as follows:

	Aerospace &
(Dollars in millions)	Defense		Test		USG	Total
Balance as of September 30, 2018		73.7		34.1	254.1	361.9
Acquisition activity and other		28.5		—	(0.1)	28.4
Balance as of September 30, 2019		102.2		34.1	254.0	390.3
Out-of-period adjustment		—		—	18.0	18.0
Foreign currency translation and other		(0.1)		—	(0.1)	(0.2)
Balance as of September 30, 2020	$	102.1		34.1	271.9	408.1

As of September 30, 2020, the Company reclassified $18.0 million from Morgan Schaffer’s tradename to goodwill to correct a misclassification that originated in the original accounting for the acquisition in fiscal 2017. Management has determined that the effect of this misclassification was not material to the current or any prior periods and it had no impact on the Company’s total assets, results of operations or cash flows for any period.

Amortization expense related to intangible assets with determinable lives was $21.8 million, $18.5 million and $17.3 million in 2020, 2019 and 2018, respectively. Patents are amortized over the life of the patents, generally 17 years. Capitalized software is amortized over the estimated useful life of the software, generally three to seven years. Customer relationships are generally amortized over

fifteen to twenty years. Intangible asset amortization for fiscal years 2021 through 2025 is estimated at approximately $21 million per year.