Goodwill and Intangibles
|12 Months Ended|
Dec. 31, 2018
|Goodwill and Intangible Assets Disclosure [Abstract]|
|Goodwill and Intangible Assets Disclosure [Text Block]||
Note 7 – Goodwill and Intangibles
Intangible assets, including goodwill, 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 $1.3 million for the year ended December 31, 2018 and $3.6 million for the year ended December 31, 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 analysis, the fair value of both the Construction and Service reporting units exceeded their respective carrying amounts. This resulted in no impairment charge for the quarter ended September 30, 2018. Management updated its annual assessment of goodwill and intangible assets as of December 31, 2018 due to theCompany’s consolidated book value exceeding its market capitalization and concluded that there was no impairment to its goodwill or indefinite-lived intangible asset. Similarly, no impairment charge was recorded for the year ended December 31, 2018. Management’s analyses resulted in estimated fair values of 21% and 120% greater than the segment level book values at December 31, 2018 for the Construction and Service segments, respectively.
The estimated remaining useful lives of definite-lived intangible assets are as follows:
Estimated amortization expense is as follows for the years ending December 31:
The entire disclosure for goodwill and intangible assets.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef