Goodwill and Intangibles
|9 Months Ended|
Sep. 30, 2018
|Goodwill and Intangible Assets Disclosure [Abstract]|
|Goodwill and Intangible Assets Disclosure [Text Block]||
Note 6 – Goodwill and Intangibles
Goodwill and intangible assets are comprised of the following:
The definite-lived intangible assets are amortized over the period the Company expects to receive the related economic benefit, which for customer relationships is based upon estimated future net cash inflows. The Company has previously determined that its trade name has an indefinite useful life. The Limbach trade name has been in existence since the Company’s founding in 1901 and therefore is an established brand within the industry.
Total amortization expense for these amortizable intangible assets was $1.0 million for the nine months ended September 30, 2018 and $2.8
million for the nine months ended September 30, 2017. Due to the Company's significant additional project write downs recorded during the quarter ended September 30, 2018 representing a triggering event, management performed an impairment test for goodwill and indefinite-lived intangible assets. Based on the results of the Company's analysis, the fair value of both the Construction and Service reporting units exceeded their respective carrying amounts. This resulted in no impairment charges for the nine months ended September 30, 2018. Similarly, no impairment charges were recorded for the nine months ended September 30, 2017. The Company will update its annual assessment of goodwill and intangible assets in the fourth quarter of 2018.
The entire disclosure for goodwill and intangible assets.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef