Note 6 - Goodwill

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Goodwill Disclosure [Text Block]

6.

Goodwill

Goodwill and certain indefinite-lived intangible assets are

not

amortized, but instead are tested for impairment at least annually and more frequently whenever events or changes in circumstances indicate that the fair value of the asset

may

be less than its carrying amount. The Company’s annual test for impairment is performed using a

May

31st

measurement date.

The Company has identified our reporting units for impairment testing as its

nine

 operating segments, which are aggregated into

five

reporting segments as disclosed in Note

18

 – Industry Segment Information. 

As quoted market prices are

not

available for the Company’s reporting units, the fair value of the reporting units is determined using a discounted cash flow model (income approach).  This method uses various assumptions that are specific to each individual reporting unit in order to determine the fair value. In addition, the Company compares the estimated aggregate fair value of its reporting units to its overall market capitalization.

While the Company believes that estimates of future cash flows are reasonable, changes in assumptions could significantly affect valuations and result in impairments in the future.  The most significant assumption involved in the Company’s determination of fair value is the cash flow projections of each reporting unit.  If the estimates of future cash flows for each reporting unit

may

be insufficient to support the carrying value of the reporting units, the Company will reassess its conclusions related to fair value and the recoverability of goodwill. Consistent with business practices and our strategic alignment we realigned our Nor-lake and Scientific reporting units during

April

of

2019.

As a result, we re-allocated goodwill from the Nor-lake reporting unit to the Scientific reporting unit and performed an impairment test as of

April 30, 2019

on both the old reporting unit structure as well as under the new reporting unit structure,

no

impairment was indicated in either test. 

We completed our annual impairment testing as of

May 31, 2019,

and determined that the fair value of each of its reporting units substantially exceeded each unit’s respective carrying value, therefore,

no

impairment charges were recorded in connection with our testing and assessment during

2019

and

2018.

Changes to goodwill during the years ended

June 30, 2019

and

2018

are as follows (in thousands):

	2019		2018
Balance at beginning of year, net	$	211,751	$	202,679
Acquisitions		68,392		7,655
Foreign currency translation		1,360		1,417
Balance at end of year	$	281,503	$	211,751