GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Jun. 30, 2017

GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract]

5. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill was $101,812 as of June 30, 2017, and $100,639 as of September 30, 2016. The increase in goodwill was due to $1,028 in foreign exchange fluctuations of the New Taiwan dollar and an adjustment of $145 to a deferred tax liability.

The components of other intangible assets are as follows:

	June 30, 2017				September 30, 2016
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Other intangible assets subject to amortization:
Product technology	$	42,278	$	16,396	$	42,194	$	12,718
Acquired patents and licenses		8,270		8,239		8,270		8,155
Trade secrets and know-how		2,550		2,550		2,550		2,550
Customer relationships, distribution rights and other		28,194		14,654		27,900		12,205

Total other intangible assets subject to amortization		81,292		41,839		80,914		35,628

In-process technology		4,000				4,000
Other indefinite-lived intangibles*		1,190				1,190
Total other intangible assets not subject to amortization		5,190				5,190

Total other intangible assets	$	86,482	$	41,839	$	86,104	$	35,628

*Other indefinite-lived intangible assets not subject to amortization consist primarily of trade names.

Amortization expense on our intangible assets was $1,935 and $5,860 for the three and nine months ended June 30, 2017, respectively, and was $2,072 and $6,026 for the three and nine months ended and June 30, 2016, respectively. Estimated future amortization expense for the five succeeding fiscal years is as follows:

Fiscal Year	Estimated Amortization Expense
Remainder of 2017	$	1,934
2018		7,117
2019		6,675
2020		6,670
2021		6,664

Goodwill and indefinite-lived intangible assets are tested for impairment annually in the fourth quarter of the fiscal year or more frequently if indicators of potential impairment exist, using a fair-value-based approach. The recoverability of goodwill is measured at the reporting unit level, which is defined as either an operating segment or one level below an operating segment. An entity has the option to assess the fair value of a reporting unit either using a qualitative analysis ("step zero") or a quantitative analysis ("step one"). Similarly, an entity has the option to use a step zero or a step one approach to determine the recoverability of indefinite-lived intangible assets. In fiscal 2016, we chose to use a step one analysis for both goodwill impairment and for indefinite-lived intangible asset impairment.

We completed our annual impairment test during our fourth quarter of fiscal 2016 and recorded $1,000 of impairment expense on one of the in-process technology assets acquired in the NexPlanar acquisition during the fourth quarter of 2016 based on management's expected future cash flows for this asset. There were no indicators of potential impairment during the quarter ended June 30, 2017, so it was not necessary to perform an impairment review for goodwill and indefinite-lived intangible assets during the quarter. There have been no cumulative impairment charges recorded on the goodwill for any of our reporting units.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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