Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

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Goodwill and Intangible Assets
 12 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
5. Goodwill and Intangible Assets

Goodwill

 

The following table sets forth activity in goodwill from September 30, 2016 through September 30, 2018. See Note 12 for details of the SNI acquisition that occurred during fiscal 2017.

 

Goodwill as of September 30, 2016   $ 18,590  
Acquisition of SNI Companies     58,003  
Goodwill as of September 30, 2017   $ 76,593  
         
Goodwill as of September 30, 2018   $ 76,593  

 

During fiscal 2018 and fiscal 2017 the Company did not record any impairment of goodwill.

 

Intangible Assets

 

    September 30, 2018     September 30, 2017  
(in thousands)   Cost     Accumulated Amortization     Net Book Value     Cost     Accumulated Amortization     Net Book Value  
Customer relationships   $ 29,070     $ 7,459     $ 21,611     $ 29,070     $ 4,601     $ 24,469  
Trade names     8,329       2,537       5,792       8,329       1,115       7,214  
Non-Compete agreements     4,331       2,267       2,064       4,331       965       3,366  
Total   $ 41,730     $ 12,263     $ 29,467     $ 41,730     $ 6,681     $ 35,049  
                                                 
Estimated Amortization Expense                                                
Fiscal 2019   $ 5,586                                          
Fiscal 2020     5,038                                          
Fiscal 2021     4,088                                          
Fiscal 2022     3,469                                          
Fiscal 2023     2,879                                          
Thereafter     8,407                                          
    $ 29,467                                          

  

The trade names are amortized on a straight – line basis over the estimated useful life of between five and ten years. Customer relationships are amortized based on the future undiscounted cash flows or straight – line basis over estimated remaining useful lives of five to ten years. Non-compete agreements are amortized based on a straight-line basis over the term of the noncompete agreement, typically five years.

 

The amortization expense attributable to identifiable intangible assets was $5.5 million and $3.5 million for fiscal 2018 and fiscal 2017, respectively.