. GOODWILL AND OTHER INTANGIBLES

Goodwill

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

may

not

be recoverable.

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. If the Company’s market capitalization falls below the Company’s carrying value for a sustained period of time or if such a decline becomes indicative that the fair value of the Company’s reporting units has declined to below their carrying values, an interim goodwill impairment test

may

need to be performed and

may

result in a non-cash goodwill impairment charge.

During the

2018

fiscal year, the Company determined that there were

triggering events to warrant an interim goodwill impairment test. The Company conducted its annual assessment for goodwill impairment as of

June 30, 2018,

its measurement date, using current assumptions, including updated forecasted cash flows and a reporting unit specific discount rate of

14.0%,

and concluded that goodwill is

not

impaired. As of

June 30, 2018,

the balance of goodwill of

$2,692

is carried in the European Industrial reporting unit. The fair value of the European Industrial reporting unit exceeded its carrying value by

87%

and therefore

impairment charge was required for this reporting unit.

Prior to the current fiscal year, the Company recorded significant impairment charges in fiscal

2017

and

2016,

primarily due to sustained unfavorable operating results during those years. In fiscal

2016,

the impairment charge of

$7,602

pertained to a

100%

impairment of the Company’s European Propulsion reporting unit, and a partial impairment of its U.S. Industrial reporting unit. In fiscal

2017,

due to the lack of market recovery in that market, the Company recorded an additional impairment charge to fully impair the balance of

$2,550

relating to its U.S. Industrial reporting unit. The impairment charges were recorded after a determination that the fair value of those respective reporting units, as determined using respective discounted cash flow analysis and market participant discount rates, were less than their carrying values. The impairment charges were of a non-cash nature; they did

not

impact liquidity, result in any future cash expenditures, affect the ongoing or financial performance of the Company, impact compliance with its lending arrangements, or reduce borrowing capacity.

The changes in the carrying amount of goodwill are summarized as follows:

	Net Book Value Rollforward								Net Book Value By Reporting Unit
	Gross Carrying Amount		Accumulated Impairment			Net Book Value			U.S. Industrial			European Industrial		European Propulsion
Balance at June 30, 2016	$	16,392	$	(11,272	)	$	5,120		$	2,550		$	2,570	$	-
Impairment		-		(2,550	)		(2,550	)		(2,550	)		-		-
Translation adjustment		15		-			15			-			15		-
Balance at June 30, 2017		16,407		(13,822	)		2,585			-			2,585		-
Translation adjustment		107		-			107			-			107
Balance at June 30, 2018	$	16,514	$	(13,822	)	$	2,692		$	-		$	2,692	$	-

Other Intangibles

June 30,

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, 2016	$	13,426	$	(11,463	)	$	1,963		$	450		$	1,393		$	120
Amortization		-		(168	)		(168	)		(60	)		(80	)		(28	)
Translation adjustment		10		(1	)		9						6			3
Balance at June 30, 2017		13,436		(11,632	)		1,804			390			1,319			95
Addition		19		-			19			-			-			19
Amortization		-		(149	)		(149	)		(60	)		(84	)		(5	)
Translation adjustment		30		-			30						53			(23	)
Balance at June 30, 2018	$	13,485	$	(11,781	)	$	1,704		$	330		$	1,288		$	86

Other intangibles consist of certain amortizable acquisition costs, proprietary technology, computer software and certain customer relationships.

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

years.

Intangible amortization expense for the years ended

June 30, 2018,

2017

and

2016

was

$149,

$168

and

$165,

respectively. Estimated intangible amortization expense for each of the next

five

fiscal years is as follows:

Fiscal Year
2019	$	174
2020		174
2021		169
2022		149
2023		149
Thereafter		889

The gross carrying amount of the Company’s intangible assets that have indefinite lives and are

not

subject to amortization as of

June 30, 2018

and

2017

are

$202

and

$205,

respectively. These assets are comprised of acquired tradenames.