Goodwill and Other Intangible Assets, Net

9 Months Ended

Jun. 30, 2023

Goodwill and Other Intangible Assets, Net

Goodwill and Other Intangible Assets, Net

Note 9.  Goodwill and Other Intangible Assets, Net

The Company has goodwill, trademarks, customer relationships and other intangibles.  Customer relationships have a definite life and are amortized over a period of fifteen years.  The Company reviews customer relationships for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the assets is measured by a comparison of the carrying amount of the asset to the undiscounted cash flows expected to be generated by the asset.   If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset.  

Goodwill and trademarks (indefinite lived) are tested for impairment at least annually as of January 31 for goodwill and August 31 for trademarks (the annual impairment testing dates), and more frequently if impairment indicators exist.  If the carrying value of a trademark exceeds its fair value (determined using an income approach, based upon a discounted cash flow of an assumed royalty rate), impairment of the trademark may exist resulting in a charge to earnings to the extent of the impairment.  The impairment test for goodwill is performed by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment loss in the event that the carrying amount is greater than the fair value.  Any goodwill impairment loss recognized would not exceed the total carrying amount of goodwill allocated to that reporting unit.  No impairment has been recognized as of June 30, 2023 because the fair value exceeds the carrying values.  

During the first nine months of fiscal 2023, there were no changes in the carrying amount of goodwill.  

Amortization of customer relationships and other intangibles was $225 and $263 for the three-month periods ended June 30, 2022 and 2023, respectively, and $547 and $479 for the nine-month periods ended June 30, 2022 and 2023, respectively.  The following represents a summary of intangible assets at September 30, 2022 and June 30, 2023.

	Gross		Accumulated		Carrying
September 30, 2022	Amount		Amortization		Amount
Trademarks	$	3,800	$	—	$	3,800
Customer relationships		2,100		(1,128)		972
Other		1,100		(963)		137
	$	7,000	$	(2,091)	$	4,909

	Gross		Accumulated		Carrying
June 30, 2023	Amount		Amortization		Amount
Trademarks	$	3,800	$	—	$	3,800
Customer relationships		2,100		(1,225)		875
Other		1,075		—		1,075
	$	6,975	$	(1,225)	$	5,750

Estimated future Aggregate Amortization Expense:
Year Ending September 30,
2023	$	99
2024		395
2025		392
2026		388
2027		318
Thereafter		358