Annual report pursuant to Section 13 and 15(d)

GOODWILL AND OTHER INTANGIBLE ASSETS

v3.10.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS
 12 Months Ended
Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS:

Changes to goodwill during the years ended September 30, 2018 and 2017, follow.
 
SGK Brand Solutions
 
Memorialization
 
Industrial Technologies
 
Consolidated
Goodwill
$
458,510

 
$
347,116

 
$
56,615

 
$
862,241

Accumulated impairment losses
(5,752
)
 
(5,000
)
 
—

 
(10,752
)
Balance at September 30, 2016
452,758

 
342,116

 
56,615

 
851,489

 
 
 
 
 
 
 
 
Additions during period
21,361

 
158

 
11,694

 
33,213

Translation and other adjustments
12,024

 
233

 
835

 
13,092

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
8,743

 
29,059

 
22,877

 
60,679

Translation and other adjustments
(9,568
)
 
(16
)
 
5

 
(9,579
)
Goodwill
491,070

 
376,550

 
92,026

 
959,646

Accumulated impairment losses
(5,752
)
 
(5,000
)
 
—

 
(10,752
)
Balance at September 30, 2018
$
485,318

 
$
371,550

 
$
92,026

 
$
948,894



The Company performed its annual impairment review of goodwill in the second quarter of fiscal 2018 and determined that estimated fair value for all reporting units exceeded carrying value, therefore no adjustments to the carrying value of goodwill were necessary.

In fiscal 2018, the additions to SGK Brand Solutions goodwill reflects several smaller acquisitions. The additions to Memorialization goodwill reflects the acquisitions of Star Granite and several additional smaller acquisitions. The addition to Industrial Technologies goodwill reflects the acquisition of Compass.

In fiscal 2017, the additions to SGK Brand Solutions goodwill primarily reflects the acquisitions of Equator, VCG and Ungricht. The additions to Industrial Technologies goodwill primarily reflects the acquisitions of RAF and Guidance.



The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of September 30, 2018 and 2017, respectively.

 
Carrying
Amount
 
Accumulated
Amortization
 
Net
September 30, 2018
 
 
 
 
 
Trade names
$
126,047

 
$
—

*
$
126,047

Trade names
53,523

 
(5,444
)
 
48,079

Customer relationships
372,382

 
(110,760
)
 
261,622

Copyrights/patents/other
20,848

 
(12,686
)
 
8,162

 
$
572,800

 
$
(128,890
)
 
$
443,910

 
 
 
 
 
 
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

 
$
522,408

 
$
(98,026
)
 
$
424,382

*Not subject to amortization
 

 
 

 
 



The net change in intangible assets during fiscal 2018 included the impact of foreign currency fluctuations during the period, additional amortization, and additions related to acquisitions, primarily Star Granite and Compass. During fiscal 2018, the Company also converted certain of its trade names from indefinite-lived to definite-lived, and accordingly, these intangible assets are now subject to amortization.

Amortization expense on intangible assets was $31,562, $23,313, and $20,821 in fiscal 2018, 2017 and 2016, respectively. Fiscal year amortization expense is estimated to be $32,128 in 2019, $30,388 in 2020, $28,976 in 2021, $27,387 in 2022 and $25,815 in 2023.