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 July 1, 2016	$	42,170		$	14,008		$	16,681		$	5,434		$	78,293
Purchase of Houston Interests (Note 3)	—			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
Disposal of business⁽²⁾	—			(2,775		)	—			—			(2,775		)
Translation adjustment⁽¹⁾	4			—			(24		)	1			(19		)
Net balance at June 30, 2019	$	24,830		$	30,829		$	16,736		$	20,973		$	93,368


(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.

(2)

In August 2018, the Company disposed of a business that marketed process heating equipment. See Note 3 - Acquisitions and Disposals for more information about the disposal. The business disposed of constituted its own reporting unit and the amount of goodwill written off was all of the goodwill assigned to that reporting unit. None of the goodwill was considered impaired since the Company recorded a gain on the disposal.

The Company performed its annual goodwill impairment test as of May 31, 2019, which resulted in no impairment. However, the risk of impairment is dependent upon the relationship of fair values to carrying amounts at the reporting unit level. The fiscal 2019 test indicated that some reporting units were at higher risk of future impairment than others. If the market view of project opportunities or gross margins deteriorates next year prior to the annual test, an interim test may be required, particularly for the higher risk reporting units, which could result in a material impairment of goodwill.

In fiscal 2018, the Company recorded a $17.3 million impairment of goodwill included in the Electrical Infrastructure segment. 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 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.

Other Intangible Assets

Information on the carrying value of other intangible assets is as follows:



		At June 30, 2019
	Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(Years)	(In thousands)
Intellectual property	10 to 15	$	2,579	$	(1,779	)	$	800
Customer based	6 to 15	38,572		(19,915		)	18,657
Non-compete Agreements	4	1,453		(1,438		)	15
Total other intangible assets		$	42,604	$	(23,132	)	$	19,472



		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
Total other intangible assets		$	42,594	$	(19,780	)	$	22,814

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.

Amortization expense totaled $3.3 million, $4.8 million, and $4.9 million in fiscal 2019, 2018, and 2017, respectively. We estimate that future amortization of other intangible assets will be as follows (in thousands):



For year ending:
June 30, 2020	$	3,768
June 30, 2021	3,749
June 30, 2022	2,900
June 30, 2023	2,447
June 30, 2024	2,134
Thereafter	4,474
Total estimated amortization expense	$	19,472