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