XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.22.4

Intangible Assets Including Goodwill (Notes) | 6 Months Ended
--- | ---
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets Including Goodwill | Goodwill and Other Intangible Assets Goodwill The changes in the carrying value of goodwill by segment are as follows:
| Utility and Power Infrastructure |  | Process and Industrial Facilities |  | Storage and Terminal Solutions |  | Total
| (In thousands)
Net balance at June 30, 2022 | $ | 4,263 |  |  | $ | 18,427 |  |  | $ | 19,445 |  |  | $ | 42,135 |
Goodwill impairment | — |  |  | (12,316) |  |  | — |  |  | (12,316) |
Translation adjustment(1) | (29) |  |  | — |  |  | (57) |  |  | (86) |
Net balance at December 31, 2022 | $ | 4,234 |  |  | $ | 6,111 |  |  | $ | 19,388 |  |  | $ | 29,733 |
(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, 2022, which resulted in no impairment. The fiscal 2022 test indicated that four reporting units with a combined total of $33.8 million of goodwill as of June 30, 2022 were at higher risk of future impairment. Recent negative operating results of one of our reporting units at higher risk of impairment indicated that it was more likely than not that its goodwill was impaired. This reporting unit is in the Process and Industrial Facilities segment and includes the midstream gas processing project referenced in Note 2 - Revenue, Revisions in Estimates, which experienced a material adverse change in gross profit during the second quarter of fiscal 2023. Based on the indicated outcome of this project and our near-term outlook for the reporting unit, we performed an interim impairment test for the unit and concluded that its $12.3 million of goodwill was fully impaired. The impairment was recognized in operating income during the three and six months ended December 31, 2022. Based on the totality of both positive and negative factors, no impairment indicators related to the other reporting units existed at December 31, 2022. However, if our view of project opportunities or gross margins deteriorates, particularly for the remaining higher risk reporting units, then we may need to perform an interim goodwill impairment test, which could result in an impairment. Other Intangible Assets Information on the carrying value of other intangible assets is as follows:
|  |  | At December 31, 2022
| Useful Life |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
| (Years) |  | (In thousands)
Intellectual property | 10 to 15 |  | $ | 2,483 |  |  | $ | (2,286) |  |  | $ | 197 |
Customer-based(1) | 6 to 15 |  | 13,144 |  |  | (9,410) |  |  | 3,734 |
Total amortizing intangible assets |  |  | $ | 15,627 |  |  | $ | (11,696) |  |  | $ | 3,931 |
(1)Customer-based intangible assets have been adjusted in fiscal 2023 to remove $4.2 million of customer relationships that have been fully amortized.
|  |  | At June 30, 2022
| Useful Life |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
| (Years) |  | (In thousands)
Intellectual property | 10 to 15 |  | $ | 2,558 |  |  | $ | (2,276) |  |  | $ | 282 |
Customer-based | 6 to 15 |  | 17,331 |  |  | (12,817) |  |  | 4,514 |
Total amortizing intangible assets |  |  | $ | 19,889 |  |  | $ | (15,093) |  |  | $ | 4,796 |
Amortization expense totaled $0.4 million and $0.9 million during the three and six months ended December 31, 2022 and $0.4 million and $1.0 million during the three and six months ended December 31, 2021, respectively. We estimate that the remaining amortization expense related to December 31, 2022 amortizing intangible assets will be as follows (in thousands):
Period ending: |
Remainder of Fiscal 2023 | $ | 864 |
Fiscal 2024 | 1,416 |
Fiscal 2025 | 1,096 |
Fiscal 2026 | 555 |
Total estimated remaining amortization expense at December 31, 2022 | $ | 3,931 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 https://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration