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Goodwill and Other Intangible Assets | 12 Months Ended
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Jun. 30, 2020
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, 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 |
Goodwill impairment |  | (24,900) |  |  | — |  |  | — |  |  | (7,981) |  |  | (32,881) |
Translation adjustment(1) |  | 70 |  |  | — |  |  | (169) |  |  | (19) |  |  | (118) |
Net balance at June 30, 2020 |  | $ | — |  |  | $ | 30,829 |  |  | $ | 16,567 |  |  | $ | 12,973 |  |  | $ | 60,369 |
(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, 2020, which resulted in no impairment. The fiscal 2020 test indicated that three reporting units with a combined total of $14.2 million of goodwill as of June 30, 2020 were at higher risk of future impairment than others. If the Company's view of project opportunities or gross margins deteriorates, particularly for the higher risk reporting units, then the Company may be required to record a material impairment of goodwill. During the third quarter of fiscal 2020, the Company concluded that goodwill impairment indicators existed based on the uncertainties caused by the COVID-19 pandemic and the significant decline in the price of crude oil. These uncertainties resulted in lowered revenue expectations for the remainder of fiscal 2020 and fiscal 2021 and led to significant volatility in the Company's stock price. Accordingly, the Company performed an interim test as of March 31, 2020, which did not result in any additional impairments. In the second quarter of fiscal 2020, the Company concluded that a goodwill impairment indicator existed in the Electrical Infrastructure segment based on the recent history of depressed gross margins and the second quarter’s downward acceleration of revenue and gross margin. Accordingly, the Company performed an interim impairment test as of December 31, 2019, reflecting updated revenue and gross margin assumptions, and concluded that the reporting unit's $24.9 million of goodwill was fully impaired. Additionally, the Company concluded that a goodwill impairment indicator existed for an Industrial segment reporting unit based on several second quarter events. These events included the deterioration of our relationship with a significant customer in the iron and steel industry in the second quarter. As a result, the customer canceled other previously awarded work and the Company is expecting little to no new business from this customer in the foreseeable future. Accordingly, the Company performed an interim impairment test as of December 31, 2019 and concluded that the reporting unit's $8.0 million of goodwill was fully impaired. 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 each reporting unit was derived primarily by utilizing a discounted cash flow analysis. The key assumptions used are described in Note 1 - Summary of Significant Accounting Policies, Goodwill. Other Intangible Assets In the fourth quarter of fiscal 2020, the Company fully impaired a customer relationship intangible asset with a net book value of $1.2 million. The customer relationship primarily related to services which were impacted by the Company's performance improvement plan (see Note 14 - Restructuring Costs). As a result, the customer relationship intangible asset was no longer recoverable. As of June 30, 2020, this intangible asset had a remaining useful life of approximately 2 years, a gross carrying amount of $6.3 million and accumulated amortization of $5.1 million. The impairment is included in the restructuring costs caption in the Consolidated Statements of Income. Also in the fourth quarter of fiscal 2020, the Company fully impaired a customer relationship intangible asset with a net book value of $0.4 million in connection with the closure of an underperforming operating unit. The closure was part the Company's performance improvement plan (see Note 14 - Restructuring Costs). As of June 30, 2020, this intangible asset had a remaining useful life of approximately 4 years, a gross carrying amount of $0.9 million and accumulated amortization of $0.5 million. The impairment is included in the restructuring costs caption in the Consolidated Statements of Income. In the second quarter of fiscal 2020, in connection with the factors disclosed for the Industrial segment goodwill impairment above, the Company fully impaired a customer relationship with a net book value of $5.6 million. As of December 31, 2019, this intangible asset had a remaining useful life of 9 years, a gross carrying amount of $9.4 million and accumulated amortization of $3.8 million. The impairment is included within the goodwill and other intangible asset impairment caption in the Consolidated Statements of Income. In the fourth quarter of fiscal 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. Information on the carrying value of other intangible assets is as follows:
|  |  |  | At June 30, 2020 |  |  |  |
|  | Useful Life |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
|  | (Years) |  | (In thousands) |  |  |  |
Intellectual property |  | 10 to 15 |  | $ | 2,579 |  |  | $ | (1,956) |  |  | $ | 623 |
Customer based |  | 6 to 15 |  | 21,840 |  |  | (13,626) |  |  | 8,214 |
Non-compete Agreements |  | 4 |  | 1,453 |  |  | (1,453) |  |  | — |
Total other intangible assets |  |  |  | $ | 25,872 |  |  | $ | (17,035) |  |  | $ | 8,837 |
|  |  |  | 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 |
Amortization expense totaled $3.4 million, $3.3 million, and $4.8 million in fiscal 2020, 2019, and 2018, respectively. We estimate that future amortization of other intangible assets will be as follows (in thousands):
For year ending: |
June 30, 2021 | $ | 2,231 |
June 30, 2022 | 1,811 |
June 30, 2023 | 1,729 |
June 30, 2024 | 1,415 |
June 30, 2025 | 1,096 |
Thereafter | 555 |
Total estimated amortization expense | $ | 8,837 |

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- Definition The entire disclosure for goodwill and 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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