Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

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Goodwill and Intangible Assets
6 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
5. Goodwill and Intangible Assets

Goodwill

 

The following table sets forth activity in goodwill from September 2016 through March 31, 2018. See Note 11 for details of acquisitions that occurred during the year ended September 30, 2017 (in thousands).

 

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 March 31, 2018   $ 76,593  

 

During the six months ended March 31, 2018 and the year ended September 30, 2017 the Company did not record any impairment of goodwill.

 

Intangible Assets

 

As of March 31, 2018

 

(In Thousands)   Cost    

Accumulated

Amortization

   

Net

Book Value

 
                   
Customer Relationships   $ 29,070     $ 6,028     $ 23,042  
Trade Name     8,329       1,827       6,502  
Non-Compete Agreements     4,331       1,616       2,715  
    $ 41,730     $ 9,471     $ 32,259  

 

As of September 30, 2017

 

(In Thousands)   Cost    

Accumulated

Amortization

   

Net

Book Value

 
                   
Customer Relationships   $ 29,070     $ 4,601     $ 24,469  
Trade Name     8,329       1,115       7,214  
Non-Compete Agreements     4,331       965       3,366  
    $ 41,730     $ 6,681     $ 35,049  

 

The amortization expense attributable to the amortization of identifiable intangible assets was approximately $1,394,000 and $2,790,000 and $369,000 and $738,000 for the three and six months ended March 31, 2018 and 2017, respectively.

 

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 $32,259,000, as follows: fiscal 2018 - $2,792,000, fiscal 2019 - $5,586,000, fiscal 2020 - $5,005,000, fiscal 2021 - $4,148,000, fiscal 2022 - $3,469,000 and thereafter - $11,259,000.

 

Long-lived assets, including 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.