Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

17. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The following summarizes changes in the carrying value of goodwill by segment for the years ended September 30, 2020 and 2019:

	Communications		Residential		Infrastructure Solutions		Commercial & Industrial		Total
Balance at September 30, 2018	$	2,816	$	9,979	$	30,931	$	6,976	$	50,702
Divestitures	—		—		(119)		—		(119)
Purchase accounting adjustments	—		39		—		—		39
Balance at September 30, 2019	2,816		10,018		30,812		6,976		50,622
Acquisitions (Note 19)	—		6,201		3,916		—		10,117
Goodwill impairment	—		—		—		(6,976)		(6,976)
Balance at September 30, 2020	$	2,816	$	16,219	$	34,728	$	—	$	53,763

Throughout 2020, our Commercial & Industrial reporting unit continued to experience operating losses. Although we have maintained a focus on operational improvements and cost reductions, our performance continued to be affected by the ongoing COVID-19 pandemic and other market factors which delayed the awarding of new projects, decreased demand for new construction in market sectors such as retail, office, and hospitality, and negatively impacted our revenue, profitability and backlog. As a result of this increasingly competitive and uncertain environment, and the financial performance of this reporting unit, we concluded in performing our annual goodwill impairment assessment that the fair value of our Commercial & Industrial reporting unit was less than its carrying amount, which resulted in the recognition of a non-cash goodwill impairment charge of $6,976 for the year ended September 30, 2020.

In performing the goodwill impairment test, we compare each reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit. The fair value of the reporting unit is estimated using a combination of (i) an analysis of trading multiples of comparable companies (market method) and (ii) discounted projected cash flows (income method). The market method utilizes comparable publicly traded companies’ enterprise values, as compared to their recent and forecasted earnings. The income method measures the present value of the reporting unit’s projected future annual cash flows over the next five years with a terminal value assumption. We use a variety of underlying assumptions to estimate these future cash flows, including assumptions relating to future economic market conditions, costs and expenses and capital expenditures.

We believe the combination of these approaches and our judgment regarding underlying assumptions and estimates provides us with the best estimate of fair value for each of our reporting units, and that these valuation methods are widely used by market participants in our industry. The fair value of our reporting units is affected by assumptions regarding future market conditions and the demand for our services, our ability to execute future projects successfully, and the cost of capital. Our estimate of fair value requires us to use significant unobservable inputs, representative of Level 3 fair value measurements.

Intangible Assets

Intangible assets consist of the following:

				September 30, 2020
	Estimated Useful Lives (in Years)			Gross Carrying Amount		Accumulated Amortization		Net
Trademarks/trade names	5	-	20	$	7,754	$	(1,741)	$	6,013
Technical library	20			400		(141)		259
Customer relationships	6	-	15	46,449		(14,900)		31,549
Non-competition arrangements	5			40		(17)		23
Backlog and construction contracts	1			3,383		(1,870)		1,513
Total				$	58,026	$	(18,669)	$	39,357

				September 30, 2019
	Estimated Useful Lives (in Years)			Gross Carrying Amount		Accumulated Amortization		Net
Trademarks/trade names	5	-	20	$	5,084	$	(1,267)	$	3,817
Technical library	20			400		(121)		279
Customer relationships	6	-	15	33,539		(11,051)		22,488
Non-competition arrangements	5			40		(9)		31
Backlog and construction contracts	1			599		(591)		8
Total				$	39,662	$	(13,039)	$	26,623

For the years ended September 30, 2020, 2019, and 2018, amortization expense of intangible assets was $6,424, $3,950 and $4,101, respectively. Our estimated future amortization expense for years ending September 30 is as follows:

Year Ending September 30,
2021	$	6,217
2022	4,634
2023	4,241
2024	3,898
2025	3,571
Thereafter	16,796
Total	$	39,357