. Goodwill and Other Intangibles

Goodwill represents the excess of the consideration transferred net of the acquisition-date fair values of the identifiable assets acquired and the liabilities assumed.

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.

July 2, 2018,

as discussed in Note B, the Company acquired goodwill in the estimated amount of

$24,986

and intangible assets in the estimated amount of

$24,000

as part of the acquisition of Veth Propulsion Holding BV. These estimates are preliminary and are pending completion of several elements, including finalization of an independent valuation of fair value of the assets acquired and liabilities assumed and final review by the Company’s management. The final determination of fair values and resulting goodwill

may

differ significantly from what is currently reflected.

As of

March 29, 2019,

changes in the carrying amount of goodwill is summarized as follows:

	Net Book Value Rollforward									By Reporting Unit
	Gross Carrying Amount			Accumulated Amortization / Impairment			Net Book Value			European Industrial			European Propulsion
Balance at June 30, 2018	$	16,514		$	(13,822	)	$	2,692		$	2,692		$	-
Acquisition		24,986			-			24,986			-			24,986
Translation adjustment		(1,006	)		-			(1,006	)		(72	)		(934	)
Balance at March 29, 2019	$	40,494		$	(13,822	)	$	26,672		$	2,620		$	24,052

For the quarter ended

March 29, 2019,

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 and European Propulsion reporting units had

not

more likely than

not

declined to below their carrying values at

March 29, 2019.

The Company will perform its annual impairment test for all its operating units as of

June 30, 2019.

As of

March 29, 2019,

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			Trade Name			Customer Relationships			Technology Know-how			Other
Balance at June 30, 2018	$	13,485		$	(11,781	)	$	1,704		$	1,288		$	-		$	-		$	416
Acquisition		24,000			-			24,000			1,800			13,800			8,400			-
Other additions		103			-			103			-			-			-			103
Amortization		-			(1,995	)		(1,995	)		(196	)		(846	)		(883	)		(70	)
Translation adjustment		(898	)		-			(898	)		(98	)		(500	)		(298	)		(2	)
Balance at March 29, 2019	$	36,690		$	(13,776	)	$	22,914		$	2,794		$	12,454		$	7,219		$	447

Other intangibles consist of certain amortizable acquisition costs, proprietary technology, computer software, licensing agreements 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 was

$746

and

$46

for the quarters ended

March 29, 2019,

and

March 30, 2018,

respectively. Intangible amortization expense was

$1,995

and

$135

for the

three

quarters ended

March 29, 2019,

and

March 30, 2018,

respectively. Estimated intangible amortization expense for the remainder of fiscal

2019

and each of the next

five

fiscal years is as follows:

Fiscal Year
2019	$	689
2020		2,659
2021		2,609
2022		2,586
2023		2,579
2024		2,549

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

not

subject to amortization as of

March 29, 2019

and

June 30, 2018

was

$200

and

$202,

respectively. These assets are comprised of acquired trade names.