Business Acquisitions, Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Mar. 31, 2017

Schedule of assets acquired and liabilities assumed

The following summarizes the estimated fair values of the Oil and Gas assets acquired and liabilities assumed at the acquisition date, as well as measurement period adjustments:



			November 30, 2015 (As Initially Reported)			Measurement Period Adjustments			November 30, 2015 (As Adjusted)
Cash and cash equivalents			$	355		$	—		$	355
Accounts receivable			26,406			1,857			28,263
Prepaid expenses and other current assets			7,276			(48		)	7,228
Property and equipment			3,552			—			3,552
Identifiable intangible assets:
	Customer relationships and backlog		43,500			—			43,500
	Internally developed software		1,000			—			1,000
		Total identifiable intangible assets	44,500			—			44,500
Goodwill			64,673			(4,379		)	60,294
Other non-current assets			20,683			—			20,683
Accounts payable			(2,587		)	43			(2,544		)
Accrued compensation and benefits			(7,199		)	(2		)	(7,201		)
Other accrued liabilities			(5,210		)	100			(5,110		)
Current portion of long-term debt			(6,447		)	(38		)	(6,485		)
Long-term debt, net of current portion			(18,547		)	—			(18,547		)
Non-controlling interest			—			(490		)	(490		)
	Net assets acquired		$	127,455		$	(2,957	)	$	124,498

Schedule of pro forma information

These unaudited pro forma operating results are presented for illustrative purposes only and are not indicative of the operating results that would have been achieved had the acquisition occurred on July 1, 2014, nor does the information project results for any future period.



	Nine Months Ended
	March 25, 2016
Gross revenue	$	526,384
Net service revenue	$	383,374
Net income applicable to TRC Companies, Inc.	$	(8,368	)

Basic earnings per common share	$	(0.27	)
Diluted earnings per common share	$	(0.27	)

Schedule of goodwill

The carrying amount of goodwill for the nine months ended March 31, 2017 by operating segment are as follows:



	Gross									Gross
	Balance,		Accumulated			Balance,				Balance,		Accumulated			Balance,
	July 1,		Impairment			July 1,		Additions /		March 31,		Impairment			March 31,
Operating Segment	2016		Losses			2016		Adjustments		2017		Losses			2017
Power	$	28,506	$	(14,506	)	$	14,000	$	—	$	28,506	$	(14,506	)	$	14,000
Environmental	40,889		(17,865		)	23,024		—		40,889		(17,865		)	23,024
Infrastructure	7,224		(7,224		)	—		15,717		22,941		(7,224		)	15,717
Oil and Gas	60,294		(21,981		)	38,313		—		60,294		(21,981		)	38,313
	$	136,913	$	(61,576	)	$	75,337	$	15,717	$	152,630	$	(61,576	)	$	91,054

Schedule of identifiable intangible assets

Identifiable intangible assets as of March 31, 2017 and June 30, 2016 are included in intangible assets, net on the condensed consolidated balance sheets and were comprised of:



	March 31, 2017							June 30, 2016
	Gross					Net		Gross					Net
	Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
Identifiable intangible assets	Amount		Amortization			Amount		Amount		Amortization			Amount
With determinable lives:
Customer relationships	$	67,210	$	(22,276	)	$	44,934	$	59,218	$	(14,933	)	$	44,285
Contract backlog	2,700		(278		)	2,422		900		(525		)	375
Technology	1,000		(267		)	733		1,000		(117		)	883
	70,910		(22,821		)	48,089		61,118		(15,575		)	45,543
With indefinite lives:
Engineering licenses	426		—			426		426		—			426
	$	71,336	$	(22,821	)	$	48,515	$	61,544	$	(15,575	)	$	45,969

Schedule of expected amortization expense

Estimated amortization expense of intangible assets for the remainder of fiscal year 2017 and succeeding fiscal years is as follows:



Fiscal Year		Amount
2017		$	3,191
2018		12,368
2019		10,103
2020		9,146
2021		8,574
2022 and Thereafter		4,707
	Total	$	48,089