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Intangible Assets, Net | 12 Months Ended
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Sep. 30, 2019
Intangible Assets, Net |
Intangible Assets, Net | Note 13. Intangible assets, net
| September 30, 2019 |  | September 30, 2018
| Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Amount
Intangible assets with finite lives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships and contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aerospace | $ | 281,683 |  | $ | (181,995) |  | $ | 99,688 |  | $ | 281,683 |  | $ | (166,719) |  | $ | 114,964
Industrial |  | 407,683 |  |  | (43,986) |  |  | 363,697 |  |  | 429,880 |  |  | (35,856) |  |  | 394,024
Total | $ | 689,366 |  | $ | (225,981) |  | $ | 463,385 |  | $ | 711,563 |  | $ | (202,575) |  | $ | 508,988
Intellectual property: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aerospace | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | -
Industrial |  | 19,201 |  |  | (18,705) |  |  | 496 |  |  | 19,448 |  |  | (18,587) |  |  | 861
Total | $ | 19,201 |  | $ | (18,705) |  | $ | 496 |  | $ | 19,448 |  | $ | (18,587) |  | $ | 861
Process technology: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aerospace | $ | 76,371 |  | $ | (59,913) |  | $ | 16,458 |  | $ | 76,372 |  | $ | (54,874) |  | $ | 21,498
Industrial |  | 92,820 |  |  | (24,926) |  |  | 67,894 |  |  | 97,154 |  |  | (20,373) |  |  | 76,781
Total | $ | 169,191 |  | $ | (84,839) |  | $ | 84,352 |  | $ | 173,526 |  | $ | (75,247) |  | $ | 98,279
Backlog: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aerospace | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | -
Industrial |  | 40,500 |  |  | (40,500) |  |  | - |  |  | 42,955 |  |  | (18,006) |  |  | 24,949
Total | $ | 40,500 |  | $ | (40,500) |  | $ | - |  | $ | 42,955 |  | $ | (18,006) |  | $ | 24,949
Other intangibles: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aerospace | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | -
Industrial |  | 1,541 |  |  | (1,249) |  |  | 292 |  |  | 1,629 |  |  | (1,158) |  |  | 471
Total | $ | 1,541 |  | $ | (1,249) |  | $ | 292 |  | $ | 1,629 |  | $ | (1,158) |  | $ | 471
Intangible asset with indefinite life: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tradename: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aerospace | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | -
Industrial |  | 63,467 |  |  | - |  |  | 63,467 |  |  | 67,335 |  |  | - |  |  | 67,335
Total | $ | 63,467 |  | $ | - |  | $ | 63,467 |  | $ | 67,335 |  | $ | - |  | $ | 67,335
Total intangibles: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aerospace | $ | 358,054 |  | $ | (241,908) |  | $ | 116,146 |  | $ | 358,055 |  | $ | (221,593) |  | $ | 136,462
Industrial |  | 625,212 |  |  | (129,366) |  |  | 495,846 |  |  | 658,401 |  |  | (93,980) |  |  | 564,421
Consolidated Total | $ | 983,266 |  | $ | (371,274) |  | $ | 611,992 |  | $ | 1,016,456 |  | $ | (315,573) |  | $ | 700,883
Indefinite lived intangible assets The Woodward L’Orange tradename intangible asset is tested for impairment on an annual basis and more often if an event occurs or circumstances change that indicate the fair value of the Woodward L’Orange intangible asset may be below its carrying amount. The impairment test consists of comparing the fair value of the Woodward L’Orange tradename intangible asset, determined using discounted cash flows based on the relief from royalty method under the income approach, with its carrying amount. If the carrying amount of the Woodward L’Orange tradename intangible asset exceeds its fair value, an impairment loss would be recognized to reduce the carrying amount to its fair value. Woodward has not recorded any impairment charges for this asset. During the fourth quarter, Woodward completed its annual impairment test of the Woodward L’Orange tradename intangible asset as of July 31, 2019 for the fiscal year ended September 30, 2019. The fair value of the Woodward L’Orange tradename intangible assets was determined using discounted cash flows based on the relief from royalty method under the income approach. This method represents a Level 3 input (based upon a fair value hierarchy established by U.S. GAAP) and incorporates various estimates and assumptions, the most significant being projected revenue growth rates, royalty rates, future tax rates and the present value, based on an estimated weighted-average cost of capital (or the discount rate) and terminal growth rate, of the forecasted cash flow. Management projects revenue growth rates and cash flows based on Woodward L’Orange’s current operational results, expected performance and operational strategies over a ten-year period. These projections are adjusted to reflect current economic conditions and demand for certain products, and require considerable management judgment. The forecasted cash flow used in the July 31, 2019 impairment test was discounted using weighted-average cost of capital assumption of 10.44%. The terminal value of the forecasted cash flow was calculated using the Gordon Growth Model and assumed an annual compound growth rate after ten years of 3.39%. These inputs, which are unobservable in the market, represent management’s best estimate of what market participants would use in determining the present value of the Company’s forecasted cash flows. Changes in these estimates and assumptions can have a significant impact on the fair value of the forecasted cash flow. The results of impairment test performed as of July 31, 2019 indicated the estimated fair value of the Woodward L’Orange tradename intangible asset was in excess of its carrying value, and accordingly, no impairment existed. Finite lived intangible assets For the fiscal years ended September 30, 2019, 2018, and 2017, Woodward recorded amortization expense associated with intangibles of the following:
| Year Ended September 30,
| 2019 |  | 2018 |  | 2017
Amortization expense | $ | 56,022 |  | $ | 44,742 |  | $ | 25,777
Future amortization expense associated with intangibles is expected to be:
Year Ending September 30: |  |  |  |  |
2020 |  |  |  | $ | 39,713
2021 |  |  |  |  | 40,649
2022 |  |  |  |  | 38,451
2023 |  |  |  |  | 37,393
2024 |  |  |  |  | 33,616
Thereafter |  |  |  |  | 358,703
|  |  |  | $ | 548,525

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- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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