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Goodwill and Other Intangible Assets
 12 Months Ended
Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets:
The changes in the carrying amount of goodwill by reportable segment for the fiscal years ended June 30, 2019 and July 1, 2018 are as follows (in thousands):
 
 
Engines
 
Products
 
Total
Goodwill Balance at July 2, 2017
 
$
138,074

 
$
23,575

 
$
161,649

Acquisitions
 
—

 
2,573

 
2,573

Effect of Translation
 
(682
)
 
(340
)
 
(1,022
)
Goodwill Balance at July 1, 2018
 
$
137,392

 
$
25,808

 
$
163,200

Acquisitions
 
—

 
6,786

 
6,786

Effect of Translation
 
(297
)
 
(7
)
 
(304
)
Goodwill Balance at June 30, 2019
 
$
137,095

 
$
32,587

 
$
169,682


At June 30, 2019, July 1, 2018 and July 2, 2017, accumulated goodwill impairment losses, as recorded in the Products segment, were $131.4 million respectively.
The Company evaluates goodwill for impairment at least annually as of the fiscal year-end and more frequently if events or circumstances indicate that the assets may be impaired. The Company will test goodwill using a two-step process. The first step of the goodwill impairment test is to identify a potential impairment by comparing the carrying values of each of the Company's reporting units to their estimated fair values as of the test dates. The estimates of fair value of the reporting units are computed using either an income approach, a market approach, or a combination of both. The income approach utilizes a multi-year forecast of estimated cash flows and a terminal value at the end of the cash flow period. The forecast period assumptions consist of internal projections that are based on the Company's budget and long-range strategic plan. The discount rate used at the test date is the weighted-average cost of capital which reflects the overall level of inherent risk of the reporting unit and the rate of return an outside investor would expect to earn. Valuations using the market approach are derived from metrics of publicly traded companies or historically completed transactions of comparable businesses. The selection of comparable businesses is based on the markets in which the reporting units operate giving consideration to risk profiles, size, geography, and diversity of products and services.
Some of the significant assumptions inherent in estimating the fair values include the estimated future annual net cash flows for each reporting unit (including net sales, operating income margin, and working capital) and a discount rate that appropriately reflects the risks inherent in each future cash flow stream. The Company selected assumptions used in the financial forecasts using historical data, supplemented by current and anticipated market conditions, estimated growth rates, management’s plans, and guideline companies. The assumptions included in the impairment test require judgment, and changes to these inputs could impact the results of the calculation.
If the fair value of a reporting unit exceeds its book value, goodwill of the reporting unit is not deemed impaired and the second step of the impairment test is not performed. If the book value of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. The implied fair value of goodwill is determined by allocating the estimated fair value of the reporting unit to the estimated fair value of its existing tangible assets and liabilities as well as existing identified intangible assets and previously unrecognized intangible assets in a manner similar to a purchase price allocation. The unallocated portion of the estimated fair value of the reporting unit is the implied fair value of goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess.

The Jobsite reporting unit fair value exceeded the carrying value by less than 10% as of the latest 2019 impairment testing date. The discount rate the Company used to determine the fair value was 14.3%. The Turf & Consumer reporting unit fair value exceeded the carrying value by more than 10% but less than 20% as of the latest 2019 impairment testing date. The discount rate the Company used to determine the fair value was 14.2%.The Engines reporting unit fair value exceeded the carrying value by more than 20% as of the latest 2019 impairment testing date. The discount rate the Company used to determine the fair value was 14.9%.
The Company’s other intangible assets as of June 30, 2019 and July 1, 2018 are as follows (in thousands) in the table below. After an intangible asset has been fully amortized, it is removed from the table in the subsequent year.
 
 
2019
 
2018
 
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Amortized Intangible Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Patents
 
$
9,600

 
$
(7,410
)
 
$
2,190

 
$
7,300

 
$
(6,813
)
 
$
487

Customer Relationships
 
61,381

 
(21,634
)
 
39,747

 
60,182

 
(18,995
)
 
41,187

Other Intangible Assets
 
854

 
(513
)
 
341

 
839

 
(774
)
 
65

Effect of Translation
 
(6,862
)
 
790

 
(6,072
)
 
(6,887
)
 
1,065

 
(5,822
)
Total Amortized Intangible Assets
 
64,973

 
(28,767
)
 
36,206

 
61,434

 
(25,517
)
 
35,917

Unamortized Intangible Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Tradenames
 
64,667

 
—

 
64,667

 
63,967

 
—

 
63,967

Effect of Translation
 
(4,135
)
 
—

 
(4,135
)
 
(4,020
)
 
—

 
(4,020
)
Total Unamortized Intangible Assets
 
60,532

 
—

 
60,532

 
59,947

 
—

 
59,947

Total Intangible Assets
 
$
125,505

 
$
(28,767
)
 
$
96,738

 
$
121,381

 
$
(25,517
)
 
$
95,864


The Company also performs an impairment test of its indefinite-lived intangible assets as of the fiscal year-end and more frequently if events or circumstances indicate that the assets may be impaired. For purposes of the indefinite-lived intangible asset impairment analysis, the Company performs its assessment of fair value based on an income approach using the relief-from-royalty method. The Company determines the fair value of each tradename by applying a royalty rate to a projection of net sales discounted using a risk adjusted cost of capital. Sales growth rates are determined after considering current and future economic conditions, recent sales trends, discussions with customers, planned timing of new product launches and many other variables. Each royalty rate is based on profitability of the business to which it relates and observed market royalty rates.
Amortization expense of other intangible assets amounted to approximately $3.3 million in 2019, $3.4 million in 2018, and $3.5 million in 2017.
The estimated amortization expense of other intangible assets for the next five years is (in thousands):
 
 
2020
$
2,790

2021
2,790

2022
2,790

2023
2,790

2024
2,790

 
 
 
$
13,950