XML 123 R10.htm IDEA: XBRL DOCUMENT

Business Acquisitions, Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2019

Business Acquisitions, Goodwill and Intangible Assets

Business Acquisitions, Goodwill and Intangible Assets

3. Business Acquisitions, Goodwill, and Intangible Assets

The Company completed one acquisition during the year ended September 30, 2018 for a total consideration of $5.6 million, which was accounted for under the acquisition method. Acquired tangible and intangible assets and liabilities were recognized on the acquisition date based upon their fair values. The determination of fair values of assets and liabilities acquired requires the Company to make estimates and use valuation techniques when market value is not readily available. Transaction costs associated with business acquisitions are expensed as they are incurred.

In the fourth quarter of fiscal 2019, the Company recorded a goodwill impairment in its self-perform at-risk construction businesses in its Construction Services segment. Total goodwill impairment was $588.0 million, which was recorded within Impairment of long-lived assets, including goodwill. Fair value was estimated using Level 3 inputs, such as forecasted cash flows, and Level 2 inputs, such as observed non-active market prices. The Company observed a reduction in the estimated fair value of the impaired reporting unit in connection with its continuing review of at-risk construction projects and reduction in its self-perform at-risk construction exposure. The Company identified incremental unfavorable trends in its cash flow expectations compared to prior periods, which resulted in a quantitative impairment assessment.

In the second quarter of fiscal 2018, management approved a plan to sell non-core oil and gas assets in North America, included in the Company’s Construction Services segment (the Disposal Group). The Company classified the related assets and liabilities of the Disposal Group as held for sale in the consolidated balance sheet. In the third quarter of fiscal 2018, the Company sold a portion of the assets in the Disposal Group and recognized a $2.1 million loss on disposal. The remaining portion of the Disposal Group was sold in the third quarter of fiscal 2019 and the Company recognized a $7.4 million loss on disposal.

The Company recorded losses related to the remeasurement of the Disposal Group based on estimated fair value less costs to sell resulting in total asset impairments of $168.2 million, recorded in Impairment of assets held for sale, including goodwill in the second quarter of fiscal 2018. Fair value was estimated using Level 3 inputs, such as forecasted cash flows, and Level 2 inputs, including bid prices from potential buyers.

The changes in the carrying value of goodwill by reportable segment for the fiscal years ended September 30, 2019 and 2018 were as follows:


	Fiscal Year 2019
							Foreign
	September 30,						Exchange		September 30,
	2018		Disposal		Impairment		Impact		2019
	(in millions)
Design and Consulting Services	$	3,189.2	$	(5.8)	$	—	$	(22.2)	$	3,161.2
Construction Services		1,008.9		—		(588.0)		(3.3)		417.6
Management Services		1,723.0		(12.5)		—		(14.0)		1,696.5
Total	$	5,921.1	$	(18.3)	$	(588.0)	$	(39.5)	$	5,275.3


	Fiscal Year 2018
				Measurement			Foreign
	September 30,			Period			Exchange		September 30,
	2017		Adjustment		Impairment		Impact		2018
	(in millions)
Design and Consulting Services	$	3,218.9	$	—	$	—	$	(29.7)	$	3,189.2
Construction Services		1,049.9		91.0		(125.4)		(6.6)		1,008.9
Management Services		1,724.1		—		—		(1.1)		1,723.0
Total	$	5,992.9	$	91.0	$	(125.4)	$	(37.4)	$	5,921.1

The gross amounts and accumulated amortization of the Company’s acquired identifiable intangible assets with finite useful lives as of September 30, 2019 and 2018, included in intangible assets—net, in the accompanying consolidated balance sheets, were as follows:


	September 30, 2019						September 30, 2018						Amortization
	Gross		Accumulated		Intangible		Gross		Accumulated		Intangible		Period
	Amount		Amortization		Assets, Net		Amount		Amortization		Assets, Net		(years)
	(in millions)
Backlog and customer relationships	$	1,284.2	$	(1,051.2)	$	233.0	$	1,285.1	$	(966.0)	$	319.1	1 - 11
Trademark / tradename		18.3		(18.3)		—		18.3		(17.5)		0.8	0.3 - 2
Total	$	1,302.5	$	(1,069.5)	$	233.0	$	1,303.4	$	(983.5)	$	319.9

Amortization expense of acquired intangible assets included within cost of revenue was $86.0 million, $96.7 million, and $102.7 million for the years ended September 30, 2019, 2018 and 2017, respectively. The following table presents estimated amortization expense of existing intangible assets for the succeeding years:


Fiscal Year	(in millions)
2020	$	68.9
2021		56.1
2022		43.4
2023		39.0
2024		20.2
Thereafter		5.4
Total	$	233.0