Intangible Assets

12 Months Ended

Sep. 30, 2016

7. Intangible Assets

As a result of the acquisition of Jacobs Trading Company on October 1, 2011, the Company assumed the rights and obligations of Jacobs Trading Company under the seller's Master Merchandise Salvage Contract with Wal-Mart Stores, Inc. (the "Wal-Mart Agreement") dated May 13, 2011. On December 1, 2014, Wal-Mart provided the Company with written notice terminating the Wal-Mart Agreement effective December 8, 2014. As a result of the termination of the Wal-Mart Agreement, the Company concluded that the intangible asset related to the Wal-Mart Agreement was impaired and reduced the remaining unamortized contract intangible asset of $10.3 million to zero during the fiscal year ended September 30, 2015. This impairment charge is recorded in the Acquisition costs and the related fair value adjustments and impairment of goodwill and long-lived assets line item in the Consolidated Statements of Operations. Intangible assets at September 30, 2016 and September 30, 2015 consisted only of definite-lived intangible assets, and were the following:

			September 30, 2016						September 30, 2015
	Useful Life (in years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(dollars in thousands)
Contract intangibles		10	$	1,500	$	(150)	$	1,350	$	1,500	$	—	$	1,500
Brand and technology		3 - 5		5,749		(5,018)		731		5,749		(3,926)		1,823
Covenants not to compete		3 - 5		700		(533)		167		700		(433)		267
Patent and trademarks		3 - 10		820		(418)		402		792		(331)		461

Total intangible assets, net			$	8,769	$	(6,119)	$	2,650	$	8,741	$	(4,690)	$	4,051

Future expected amortization of intangible assets at September 30, 2016 is as follows:

Years ending September 30,	Amortization
	(in thousands)
2017	$	1,073
2018		281
2019		207
2020		957
2021 and after		132

Total	$	2,650

Amortization expense related to intangible assets for the years ended September 30, 2016, 2015 and 2014 was $1.4 million, $3.1 million, and $11.0 million, respectively. In prior years the Company presented amortization of contract intangibles on a separate line item within the Consolidated Statements of Operations. During fiscal year 2016, the Company reclassified amortization of contract intangibles to the depreciation and amortization line item.