Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

v3.7.0.1
Intangible Assets
6 Months Ended
Mar. 31, 2017
Notes to Financial Statements  
5. Intangible Assets

As of March 31, 2017

 

(In Thousands)   Cost    

Accumulated

Amortization

   

Net

Book Value

 
                   
Customer Relationships   $ 10,758     $ 3,173     $ 7,585  
Trade Name     2,429       405       2,024  
Non-Compete Agreements     1,061       314       747  
    $ 14,248     $ 3,892     $ 10,356  

 

As of September 30, 2016

 

(In Thousands)   Cost    

Accumulated

Amortization

   

Net

Book Value

 
                   
Customer Relationships   $ 10,758     $ 2,662     $ 8,096  
Trade Name     2,429       285       2,144  
Non-Compete Agreements     1,061       207       854  
    $ 14,248     $ 3,154     $ 11,094  

 

The amortization expense attributable to the amortization of identifiable intangible assets was approximately $369,000 and $738,000 and $407,000 and $744,000 for the three and six months ended March 31, 2017 and 2016, respectively. In addition to amortization expense for intangible assets, the Company incurred amortization of deferred financing fees of $28,000 for the three and six months ended March 31, 2016.

 

The trade names are amortized on a straight – line basis over the estimated useful life of 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 non-compete agreement, typically five years. Over the next five years and thereafter, annual amortization expense for these finite life intangible assets will total approximately $10,356,000, as follows: fiscal 2017 - $738,000, fiscal 2018 - $1,481,000, fiscal 2019 - $1,485,000, fiscal 2020 - $1,482,000, fiscal 2021 - $1,077,000 and thereafter - $4,093,000.

 

Long-lived assets, such as purchased intangibles subject to amortization, are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company regularly evaluates whether events and circumstances have occurred that indicate possible impairment and relies on a number of factors, including operating results, business plans, economic projections, and anticipated future cash flows. The Company uses an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether the assets are recoverable.