Note I - Goodwill and Other Intangibles

6 Months Ended

Dec. 29, 2017

Goodwill and Intangible Assets Disclosure [Text Block]

I.	Goodwill and Other Intangibles

The Company reviews goodwill for impairment on a reporting unit basis annually as of the end of the fiscal year, and whenever events or circumstances (“triggering events”) indicate that the carrying value of goodwill

may

not

be recoverable. The Company monitors for interim triggering events on an ongoing basis. Such triggering events include unfavorable operating results and macroeconomic trends

The fair value of reporting units is primarily driven by projected growth rates and operating results under the income approach using a discounted cash flow model, which applies an appropriate market-participant discount rate, and consideration of other market approach data from guideline public companies. If declining actual operating results or future operating results become indicative that the fair value of the Company

’s reporting units has declined below their carrying values, an interim goodwill impairment test

may

need to be performed and

may

result in a non-cash goodwill impairment charge.

As of

December 29, 2017

and

June 30, 2017,

goodwill pertains solely to the European Industrial reporting unit.

For the quarter ended

December 29, 2017,

the Company performed a review of potential triggering events, and concluded there were

triggering events that indicated that the fair value of its European Industrial reporting unit had

not

more likely than

not

declined to below its carrying value at

December 29, 2017.

The Company will perform its annual impairment test for this reporting unit as of

June 30, 2018.

The changes in t

he carrying amount of goodwill are summarized as follows:

	Net Book Value Rollforward
	Gross Carrying Amount		Accumulated Impairment			Net Book Value
Balance at June 30, 2017	$	16,407	$	(13,822	)	$	2,585
Translation adjustment		174		-			174
Balance at December 29, 2017	$	16,581	$	(13,822	)	$	2,759

December 29, 2017,

the following acquired intangible assets have definite useful lives and are subject to amortization:

	Net Book Value Rollforward								Net Book Value By Asset Type
	Gross Carrying Amount		Accumulated Amortization / Impairment			Net Book Value			Licensing agreements			Trade Name			Other
Balance at June 30, 2017	$	13,436	$	(11,632	)	$	1,804		$	390		$	1,319		$	95
Addition		19		-			19			-			-			19
Amortization		-		(89	)		(89	)		(30	)		(43	)		(16	)
Translation adjustment		94		-			94			-			87			7
Balance at December 29, 2017	$	13,549	$	(11,721	)	$	1,828		$	360		$	1,363		$	105

The weighted average remaining useful life of the intangible assets included in the table above is approximately

years.

Intangible amortization expense was

$45

and

$42

for the quarters ended

December 29, 2017,

and

December 30, 2016,

respectively. Intangible amortization expense was

$89

and

$85

for the

two

quarters ended

December 29, 2017,

and

December 30, 2016,

respectively. Estimated intangible amortization expense for the remainder of fiscal

2018

and each of the next

five

fiscal years is as follows:

Fiscal Year
2018	$	101
2019		187
2020		173
2021		158
2022		151
2023		150

The gross carrying amount of the Company

’s intangible assets that have indefinite lives and are

not

subject to amortization as of

December 29, 2017

and

June 30, 2017

was

$204

and

$205,

respectively. These assets are comprised of acquired trade names.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details