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Goodwill and Other Intangible Assets | 12 Months Ended
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Jun. 30, 2018
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)
Net balance at June 30, 2015 |  | $ | 42,374 |  |  | $ | 14,008 |  |  | $ | 9,664 |  |  | $ | 5,472 |  |  | $ | 71,518 |
Purchase of BTE (Note 2) |  | — |  |  | — |  |  | 6,942 |  |  | — |  |  | 6,942 |
Translation adjustment (1) |  | (204 | ) |  | — |  |  | 75 |  |  | (38 | ) |  | (167 | )
Net balance at June 30, 2016 |  | 42,170 |  |  | 14,008 |  |  | 16,681 |  |  | 5,434 |  |  | 78,293 |
Purchase of Houston Interests (Note 2) |  | — |  |  | 19,596 |  |  | — |  |  | 15,550 |  |  | 35,146 |
Acquisition related adjustments |  | — |  |  | — |  |  | 88 |  |  | — |  |  | 88 |
Translation adjustment (1) |  | (18 | ) |  | — |  |  | (5 | ) |  | (3 | ) |  | (26 | )
Net balance at June 30, 2017 |  | 42,152 |  |  | 33,604 |  |  | 16,764 |  |  | 20,981 |  |  | 113,501 |
Goodwill impairment |  | (17,281 | ) |  | — |  |  | — |  |  | — |  |  | (17,281 | )
Translation adjustment (1) |  | (45 | ) |  | — |  |  | (4 | ) |  | (9 | ) |  | (58 | )
Net balance at June 30, 2018 |  | $ | 24,826 |  |  | $ | 33,604 |  |  | $ | 16,760 |  |  | $ | 20,972 |  |  | $ | 96,162 |
(1) | The translation adjustments relate to the periodic translation of Canadian Dollar and South Korean Won denominated goodwill recorded as a part of prior acquisitions in Canada and South Korea, in which the local currency was determined to be the functional currency.
We performed our annual goodwill impairment test as of May 31, 2018. The test indicated that the carrying amount of our Electrical Infrastructure reporting unit exceeded its estimated fair value, resulting in an impairment to goodwill of $17.3 million. The impairment was triggered by lower financial projections as a result of the Company's decision to shift its strategy away from EPC power generation projects to smaller, individual packages that better fit the Company's strategy and risk profile, and the recent trend of sluggish maintenance and capital spending by some key clients in our Northeast and Mid-Atlantic high voltage markets. The estimated fair value of the reporting unit was derived by utilizing a combination of discounted cash flow analysis and market multiples. If our market view of project opportunities or gross margin changes, the Company may need to perform an interim analysis, which could result in the recognition of an additional material impairment to goodwill. The Company will continue to monitor the operating results of its reporting units each period and perform additional tests as needed. Other Intangible Assets Information on the carrying value of other intangible assets is as follows:
|  |  |  | At June 30, 2018
|  | Useful Life |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
|  | (Years) |  | (In thousands)
Intellectual property |  | 9 to 15 |  | $ | 2,579 |  |  | $ | (1,603 | ) |  | $ | 976 |
Customer based |  | 6 to 15 |  | 38,562 |  |  | (16,763 | ) |  | 21,799 |
Non-compete Agreements |  | 4 |  | 1,453 |  |  | (1,414 | ) |  | 39 |
Trade names |  | — |  | 1,630 |  |  | (1,630 | ) |  | — |
Total other intangible assets |  |  |  | $ | 44,224 |  |  | $ | (21,410 | ) |  | $ | 22,814 |
|  |  |  | At June 30, 2017
|  | Useful Life |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
|  | (Years) |  | (In thousands)
Intellectual property |  | 9 to 15 |  | $ | 2,579 |  |  | $ | (1,425 | ) |  | $ | 1,154 |
Customer based |  | 1 to 15 |  | 38,207 |  |  | (13,543 | ) |  | 24,664 |
Non-compete agreements |  | 4 to 5 |  | 1,453 |  |  | (1,298 | ) |  | 155 |
Trade name |  | 1 to 3 |  | 1,630 |  |  | (1,307 | ) |  | 323 |
Total other intangible assets |  |  |  | $ | 43,869 |  |  | $ | (17,573 | ) |  | $ | 26,296 |
In June 2018, the Company recorded a $0.7 million impairment to a customer relationship intangible asset associated with an acquisition that was completed in fiscal 2013. The impairment was triggered by lower than anticipated revenue and operating income. The impairment is included in the Oil Gas & Chemical segment and is presented within the Goodwill and other intangible asset impairment caption in the Consolidated Statements of Income. In December 2017, the Company settled a portion of an account receivable with a customer in exchange for $50.0 million of backlog, which the Company expects to recognize as revenue over the next six years. The Company has recognized the backlog as a customer-based intangible asset with an estimated fair value of $2.0 million. The value assigned to the backlog approximated the net book value of the account receivable included in the settlement. The amortization expense will be recognized as the work is completed. Amortization expense totaled $4.8 million, $4.9 million, and $3.6 million in fiscal 2018, 2017, and 2016, respectively. We estimate that future amortization of other intangible assets will be as follows (in thousands):
For year ending: |
June 30, 2019 | $ | 3,699 |
June 30, 2020 | 3,688 |
June 30, 2021 | 3,669 |
June 30, 2022 | 2,821 |
June 30, 2023 | 2,369 |
Thereafter | 6,568 |
Total estimated amortization expense | $ | 22,814 |

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