Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangibles

v3.10.0.1
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:
 
(in thousands)
 
Gross

carrying

amount
 
 
Accumulated

amortization
 
 
Net intangible

assets, excluding

goodwill
 
September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Amortized intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Backlog – Construction
 
$
4,830
 
 
$
(4,708
)
 
$
122
 
Backlog – Service
 
 
880
 
 
 
(880
)
 
 
-
 
Customer Relationships – Service
 
 
4,710
 
 
 
(1,923
)
 
 
2,787
 
Favorable Leasehold Interests
 
 
530
 
 
 
(149
)
 
 
381
 
Total amortized intangible assets
 
 
10,950
 
 
 
(7,660
)
 
 
3,290
 
Unamortized intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Trade Name
 
 
9,960
 
 
 
-
 
 
 
9,960
 
Total unamortized intangible assets
 
 
9,960
 
 
 
-
 
 
 
9,960
 
Total amortized and unamortized assets, excluding goodwill
 
$
20,910
 
 
$
(7,660
)
 
$
13,250
 
Goodwill
 
$
10,488
 
 
$
-
 
 
$
10,488
 
 
(in thousands)
 
Gross

carrying

amount
 
 
Accumulated

amortization
 
 
Net intangible

assets, excluding

goodwill
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Amortized intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Backlog – Construction
 
$
4,830
 
 
$
(4,347
)
 
$
483
 
Backlog – Service
 
 
880
 
 
 
(880
)
 
 
-
 
Customer Relationships – Service
 
 
4,710
 
 
 
(1,359
)
 
 
3,351
 
Favorable Leasehold Interests
 
 
530
 
 
 
(99
)
 
 
431
 
Total amortized intangible assets
 
 
10,950
 
 
 
(6,685
)
 
 
4,265
 
Unamortized intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Trade Name
 
 
9,960
 
 
 
-
 
 
 
9,960
 
Total unamortized intangible assets
 
 
9,960
 
 
 
-
 
 
 
9,960
 
Total amortized and unamortized assets, excluding goodwill
 
$
20,910
 
 
$
(6,685
)
 
$
14,225
 
Goodwill
 
$
10,488
 
 
$
-
 
 
$
10,488
 
 
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.