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Goodwill and Other Intangible Assets | 12 Months Ended
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Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The changes in the carrying amount of goodwill by segment are as follows:
|  | Electrical Infrastructure |  | Oil Gas & Chemical |  | Storage Solutions |  | Industrial |  | Total
|  | (In thousands)
Goodwill |  | $ | 29,666 |  |  | $ | 5,841 |  |  | $ | 11,071 |  |  | $ | 7,097 |  |  | $ | 53,675 |
Cumulative impairment loss |  | (17,653 | ) |  | (3,000 | ) |  | (922 | ) |  | (3,425 | ) |  | (25,000 | )
Net balance at June 30, 2012 |  | 12,013 |  |  | 2,841 |  |  | 10,149 |  |  | 3,672 |  |  | 28,675 |
Purchase of Pelichem (Note 2) |  | — |  |  | 2,247 |  |  | — |  |  | — |  |  | 2,247 |
Translation adjustment |  | — |  |  | — |  |  | (86 | ) |  | — |  |  | (86 | )
Net balance at June 30, 2013 |  | 12,013 |  |  | 5,088 |  |  | 10,063 |  |  | 3,672 |  |  | 30,836 |
Purchase of Kvaerner North American Construction (Note 2) |  | 31,259 |  |  | 5,855 |  |  | — |  |  | 1,962 |  |  | 39,076 |
Translation adjustment |  | (29 | ) |  | — |  |  | (36 | ) |  | (10 | ) |  | (75 | )
Net balance at June 30, 2014 |  | $ | 43,243 |  |  | $ | 10,943 |  |  | $ | 10,027 |  |  | $ | 5,624 |  |  | $ | 69,837 |
The translation adjustments relate to the periodic translation of Canadian Dollar denominated goodwill recorded as a part of a prior Canadian acquisition as well as the periodic translation of the Canadian entity acquired with the purchase of Kvaerner North American Construction (Note 2) through June 30, 2014. The cumulative impairment loss shown in the table above occurred as a result of the Company’s operating performance in fiscal 2005. Other Intangible Assets Information on the carrying value of other intangible assets is as follows:
|  |  |  | At June 30, 2014
|  | Useful Life |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
|  | (Years) |  | (In thousands)
Intellectual property |  | 6 to 15 |  | $ | 2,460 |  |  | $ | (920 | ) |  | $ | 1,540 |
Customer based |  | 1.5 to 15 |  | 27,662 |  |  | (2,949 | ) |  | 24,713 |
Non-compete agreements |  | 3 to 5 |  | 1,312 |  |  | (471 | ) |  | 841 |
Trade name |  | 5 |  | 165 |  |  | (33 | ) |  | 132 |
Total amortizing intangibles |  |  |  | 31,599 |  |  | (4,373 | ) |  | 27,226 |
Trade name |  | Indefinite |  | 1,450 |  |  | — |  |  | 1,450 |
Total intangible assets |  |  |  | $ | 33,049 |  |  | $ | (4,373 | ) |  | $ | 28,676 |
|  |  |  | At June 30, 2013
|  | Useful Life |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
|  | (Years) |  | (In thousands)
Intellectual property |  | 6 to 15 |  | $ | 2,460 |  |  | $ | (753 | ) |  | $ | 1,707 |
Customer based |  | 1.5 to 15 |  | 4,250 |  |  | (542 | ) |  | 3,708 |
Non-compete agreements |  | 3 to 5 |  | 808 |  |  | (287 | ) |  | 521 |
Trade name |  | 5 |  | 165 |  |  | — |  |  | 165 |
Total amortizing intangibles |  |  |  | 7,683 |  |  | (1,582 | ) |  | 6,101 |
Trade name |  | Indefinite |  | 1,450 |  |  | — |  |  | 1,450 |
Total intangible assets |  |  |  | $ | 9,133 |  |  | $ | (1,582 | ) |  | $ | 7,551 |
The increase in other intangible assets at June 30, 2014 compared to June 30, 2013 is due to the acquisition of Matrix NAC. The Matrix NAC intangible assets consist of amortizing intangible assets including customer-based intangibles with a fair value of $23.4 million and useful lives ranging from 1.5 to 15 years and a non-compete agreement with a fair value of $0.5 million and a useful life of 4 years. Please refer to Note 2 - Acquisitions for additional information. Each reporting period, the Company evaluates the remaining useful lives of intangible assets not being amortized to determine whether facts and circumstances continue to support an indefinite useful life. Based on this analysis, for the twelve months ended June 30, 2013, Matrix revised its assumption of the useful life of the "EDC" trade name, which resulted in a reclassification of the asset from an indefinite-lived intangible to a finite-lived intangible with a five year useful life. This reclassification resulted in an impairment charge of $0.3 million which was recorded as a selling, general and administrative cost in the Industrial segment. Amortization expense totaled $2.8 million, $0.4 million, and $0.5 million in fiscal 2014, 2013, and 2012, respectively. We estimate that future amortization of other intangible assets will be as follows (in thousands):
For year ending: |
June 30, 2015 | $4,726
June 30, 2016 | 2,854 |
June 30, 2017 | 2,769 |
June 30, 2018 | 2,670 |
June 30, 2019 | 2,545 |
Thereafter | 11,662 |
Total estimated amortization expense | $27,226

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- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16373-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16265-109275 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13854-109267 + Details
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