Annual report pursuant to Section 13 and 15(d)

GOODWILL AND OTHER INTANGIBLE ASSETS

v3.3.0.814
GOODWILL AND OTHER INTANGIBLE ASSETS
12 Months Ended
Sep. 30, 2015
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS
19. GOODWILL AND OTHER INTANGIBLE ASSETS:

Changes to goodwill during the years ended September 30, 2015 and 2014, follow.

                 
   
SGK Brand Solutions
   
Memorialization
   
Industrial
   
Consolidated
 
                 
Goodwill
 
$
204,331
   
$
280,326
   
$
50,646
   
$
535,303
 
Accumulated impairment losses
   
(5,752
)
   
(5,000
)
   
-
     
(10,752
)
Balance at September 30, 2013
   
198,579
     
272,326
     
50,646
     
524,551
 
                                 
Additions during period
   
312,403
     
-
     
288
     
312,691
 
Translation and other adjustments
   
(15,684
)
   
(2,044
)
   
(47
)
   
(17,775
)
Goodwill
   
501,050
     
278,282
     
50,887
     
830,219
 
Accumulated impairment losses
   
(5,752
)
   
(5,000
)
   
-
     
(10,752
)
Balance at September 30, 2014
   
495,298
     
273,282
     
50,887
     
819,467
 
                                 
Additions during period
   
250
     
73,623
     
2,226
     
76,099
 
Translation and other adjustments
   
(34,653
)
   
(4,959
)
   
(226
)
   
(39,838
)
Goodwill
   
466,647
     
346,946
     
52,887
     
866,480
 
Accumulated impairment losses
   
(5,752
)
   
(5,000
)
   
-
     
(10,752
)
Balance at September 30, 2015
 
$
460,895
   
$
341,946
   
$
52,887
   
$
855,728
 

The Company performed its annual impairment review of goodwill in the second quarter of fiscal 2015 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 2015, the addition to Memorialization goodwill primarily reflects the acquisition of Aurora, and the addition to Industrial goodwill primarily reflects the acquisition of a small printing products business. The amount reflected in translation and other adjustments for the SGK Brand Solutions segment includes the impact of purchase price adjustments.

In fiscal 2014, the addition to goodwill primarily reflects the acquisition of Schawk.

In fiscal 2013, the addition to SGK Brand Solutions goodwill primarily reflects the acquisition of Wetzel; the addition to Industrial goodwill reflects the acquisition of Pyramid; the addition to Memorialization goodwill reflects the acquisition of two small manufacturers in Europe, and the effect of an adjustment to the purchase price for a small casket distributor.
 
The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of September 30, 2015 and 2014, respectively.

   
Carrying
   
Accumulated
     
   
Amount
   
Amortization
   
Net
 
September 30, 2015:
           
Trade names
 
$
168,467
   
$
-
*
 
$
168,467
 
Trade names
   
1,815
     
(1,718
)
   
97
 
Customer relationships
   
296,689
     
(51,393
)
   
245,296
 
Copyrights/patents/other
   
11,389
     
(10,249
)
   
1,140
 
   
$
478,360
   
$
(63,360
)
 
$
415,000
 
                         
September 30, 2014:
                       
Trade names
 
$
142,529
   
$
-
*
 
$
142,529
 
Trade names
   
2,854
     
(2,121
)
   
733
 
Customer relationships
   
258,441
     
(24,785
)
   
233,656
 
Copyrights/patents/other
   
14,528
     
(9,584
)
   
4,944
 
   
$
418,352
   
$
(36,490
)
 
$
381,862
 
*Not subject to amortization
                       

The net change in intangible assets during fiscal 2015 included an increase for the acquisition of Aurora, the impact of foreign currency fluctuations during the period, additional amortization, and trade name write-offs of approximately $4,842 in the SGK Brand Solutions segment, which resulted from the discontinuance of certain legacy trade names in connection with the integration of Schawk.  In addition, the Company completed the sale of a majority ownership in its Schawk Digital Solutions business, which was acquired in 2014 as part of the Schawk acquisition.  Net proceeds from this transaction totaled approximately $10,400, and the sale primarily resulted in the disposal of working capital and intangible assets, and the recognition of a cost-basis investment in this business.  No gain or loss was recognized on the sale.  The net change in intangible assets during fiscal 2014 included an increase for the acquisition of Schawk, foreign currency fluctuations during the period and additional amortization.

Amortization expense on intangible assets was $18,800, $7,318, and $4,156 in fiscal 2015, 2014 and 2013, respectively. Fiscal year amortization expense is estimated to be $21,462 in 2016, $20,315 in 2017, $19,020 in 2018, $17,985 in 2019 and $16,866 in 2020.