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GOODWILL AND OTHER INTANGIBLE ASSETS
9 Months Ended
Apr. 04, 2021
Goodwill And Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS

5.GOODWILL AND OTHER INTANGIBLE ASSETS

The carrying amounts of goodwill as of April 4, 2021 and June 30, 2020, attributable to each of the Company’s reportable segments, were as follows:

 

 

 

Gross Amount

 

 

Accumulated Impairment Losses

 

 

Total

 

MasterCraft

 

$

29,593

 

 

$

-

 

 

$

29,593

 

NauticStar

 

 

36,199

 

 

 

(36,199

)

 

 

-

 

Crest

 

 

36,238

 

 

 

(36,238

)

 

 

-

 

Total

 

$

102,030

 

 

$

(72,437

)

 

$

29,593

 

 

 

The following table presents the carrying amount of Other intangible assets, net:

 

 

 

April 4,

 

 

June 30,

 

 

 

2021

 

 

2020

 

 

 

Gross Amount

 

 

Accumulated Amortization / Impairment

 

 

Other intangible assets, net

 

 

Gross Amount

 

 

Accumulated Amortization / Impairment

 

 

Other intangible assets, net

 

Amortized intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dealer networks

 

$

39,500

 

 

$

(12,736

)

 

$

26,764

 

 

$

39,500

 

 

$

(9,810

)

 

$

29,690

 

Software

 

 

245

 

 

 

(122

)

 

 

123

 

 

 

245

 

 

 

(86

)

 

 

159

 

 

 

 

39,745

 

 

 

(12,858

)

 

 

26,887

 

 

 

39,745

 

 

 

(9,896

)

 

 

29,849

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unamortized intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade names

 

 

49,000

 

 

 

(15,000

)

 

 

34,000

 

 

 

49,000

 

 

 

(15,000

)

 

 

34,000

 

Total other intangible assets

 

$

88,745

 

 

$

(27,858

)

 

$

60,887

 

 

$

88,745

 

 

$

(24,896

)

 

$

63,849

 

 

Amortization expense related to Other intangible assets, net for the three and nine months ended both April 4, 2021 and March 29, 2020 was $1.0 million and $3.0 million, respectively. Estimated amortization expense for the fiscal year ended June 30, 2021 is $4.0 million.

 

Prior Year Goodwill and Other Intangible Asset Impairment

 

The past economic environment, including the significant share price and market volatility, as well as disruptions to supply chains resulting from the COVID-19 pandemic, triggered an interim impairment analysis for the Company’s intangible assets including goodwill. As a result of this analysis, the Company recorded impairment charges totaling $56.4 million during the three months ended March 29, 2020 related to the NauticStar and Crest segments.  

 

The impairment charges recorded for each segment are detailed below and are included in Goodwill and other intangible asset impairment on the condensed consolidated statement of operations. The impairment recorded in fiscal 2020 was principally a result of a decline, in the fiscal third quarter, in market conditions, including our share price, and the then current outlook for sales and operating performance relative to the Company’s acquisition plans and impairment test performed as of June 30, 2019.

 

Goodwill and other intangible asset impairment for the three and nine months ended March 29, 2020 was as follows:

 

 

 

NauticStar

 

 

Crest

 

 

Consolidated

 

Goodwill

 

$

8,199

 

 

$

36,238

 

 

$

44,437

 

Trade name

 

 

5,000

 

 

 

7,000

 

 

 

12,000

 

Total

 

$

13,199

 

 

$

43,238

 

 

$

56,437