Goodwill and Other Intangible Assets
|9 Months Ended
Jun. 30, 2012
|Goodwill and Other Intangible Assets [Abstract]
|Goodwill and Other Intangible Assets
Note 12. Goodwill and Other Intangible Assets
Goodwill related to business combinations is not amortized but is subject to annual review for impairment. In general, when the carrying value of a reporting unit exceeds its implied fair value, an impairment loss must be recognized. For purposes of testing for impairment, the Company uses a discounted cash flow technique. Intangible assets are amortized over their estimated useful lives unless such lives are considered to be indefinite. A significant decline in cash flows generated from these assets may result in a write-down of the carrying values of the related assets. The Company performed its annual impairment review in the second fiscal quarter and determined that no additional adjustments to the carrying value of goodwill were necessary.
A summary of the carrying amount of goodwill attributable to each segment as well as the changes in such amounts are as follows:
The addition to Cemetery Products reflects the acquisition of Everlasting in May 2012. The additions to Funeral Home Products and Marking Products goodwill primarily represents the effect of adjustments to purchase price; the addition to Cremation goodwill reflects the acquisition of a small cremation equipment manufacturer in Europe; and the addition to Graphics Imaging goodwill related primarily to additional consideration paid in accordance with the purchase agreement with Tact Group Limited.
The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of June 30, 2012 and September 30, 2011, respectively.
The net change in intangible assets during the nine months ended June 30, 2012 included the impact of foreign currency fluctuations during the period and additional amortization.
Amortization expense on intangible assets was $970 and $1,030 for the three-month periods ended June 30, 2012 and 2011, respectively. For the nine-month periods ended June 30, 2012 and 2011, amortization expense was $2,953 and $3,091, respectively. The remaining amortization expense is estimated to be $928 in 2012, $3,549 in 2013, $3,337 in 2014, $3,077 in 2015 and $2,783 in 2016.