Matthews International Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

3 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

A summary of the carrying amount of goodwill attributable to each segment as well as the changes in such amounts are as follows:



	SGK Brand Solutions			Memorialization			Industrial Technologies		Consolidated

Goodwill	$	491,895		$	347,507		$	69,144	$	908,546
Accumulated impairment losses	(5,752		)	(5,000		)	—		(10,752		)
Balance at September 30, 2017	486,143			342,507			69,144		897,794

Additions during period	8,603			17,152			21,112		46,867
Translation and other adjustments	2,795			1,055			176		4,026
Goodwill	503,293			365,714			90,432		959,439
Accumulated impairment losses	(5,752		)	(5,000		)	—		(10,752		)
Balance at December 31, 2017	$	497,541		$	360,714		$	90,432	$	948,687

The Company performed its annual impairment review in the second quarter of fiscal 2017 and determined that estimated fair value for all reporting units exceeded carrying value, therefore no adjustments to the carrying value of goodwill were necessary.

Note 13. Goodwill and Other Intangible Assets (continued)

The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of December 31, 2017 and September 30, 2017, respectively.



	Carrying Amount		Accumulated Amortization				Net
December 31, 2017:
Trade names	$	168,467	$	—		*	$	168,467
Trade names	8,504		(2,284		)		6,220
Customer relationships	364,554		(90,611		)		273,943
Copyrights/patents/other	19,092		(11,978		)		7,114
	$	560,617	$	(104,873	)		$	455,744

September 30, 2017:
Trade names	$	168,467	$	—		*	$	168,467
Trade names	5,522		(2,030		)		3,492
Customer relationships	333,632		(84,560		)		249,072
Copyrights/patents/other	14,787		(11,436		)		3,351
*Not subject to amortization	$	522,408	$	(98,026	)		$	424,382

The net change in intangible assets during the three months ended December 31, 2017 included the impact of foreign currency fluctuations during the period, additional amortization, and additions related to the fiscal 2018 acquisitions.

Amortization expense on intangible assets was $6,681 and $4,941 for the three-month periods ended December 31, 2017 and 2016, respectively. Amortization expense is estimated to be $22,201 for the remainder of fiscal 2018, $27,747 in 2019, $25,925 in 2020, $24,350 in 2021 and $22,928 in 2022.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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