Goodwill and Other Intangible Assets
|9 Months Ended|
Jun. 30, 2022
|Goodwill and Intangible Assets Disclosure [Abstract]|
|Goodwill and Other Intangible Assets||Goodwill and Other Intangible Assets
A summary of the carrying amount of goodwill attributable to each segment as well as the changes in such amounts are as follows:
The net goodwill balances at June 30, 2022 and September 30, 2021 included $178,732 of accumulated impairment losses. Accumulated impairment losses at June 30, 2022 and September 30, 2021 were $5,000, $23,946 and $149,786 for the Memorialization, Industrial Technologies and SGK Brand Solutions segments, respectively.
The Company performed its annual impairment review of goodwill and indefinite-lived intangible assets in the second quarter of fiscal 2022 (January 1, 2022) and determined that the estimated fair values for all goodwill reporting units exceeded their carrying values, therefore no impairment charges were necessary. The estimated fair value of the Company's SGK Brand Solutions reporting unit (formerly the Graphics Imaging reporting unit) exceeded the carrying value (expressed as a percentage of carrying value) by approximately 10%. The SGK Brand Solutions reporting unit has experienced recent declines, primarily resulting from weakened economic conditions (particularly in Europe) and unfavorable changes in foreign exchange rates. Additionally, recent increases in the cost of certain materials, labor, and other inflationary pressures have had an unfavorable impact on the reporting unit's results of operations. If current projections are not achieved or specific valuation factors outside the Company’s control (such as discount rates and continued economic and industry challenges) significantly change, goodwill write-downs may be necessary in future periods.
Note 14. Goodwill and Other Intangible Assets (continued)
The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of June 30, 2022 and September 30, 2021, respectively.
The net change in intangible assets during the nine months ended June 30, 2022 included the impact of foreign currency fluctuations during the period and additional amortization.Amortization expense on intangible assets was $11,804 and $23,039 for the three-month periods ended June 30, 2022 and 2021, respectively. For the nine month period ended June 30, 2022 and 2021, amortization expense was $45,303 and $61,190, respectively. Amortization expense is estimated to be $11,993 for the remainder of fiscal 2022, $41,064 in 2023, $35,505 in 2024, $18,880 in 2025 and $14,686 in 2026.
The entire disclosure for goodwill and intangible assets.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef