Acquisition

12 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Acquisition

Acquisition

On January 12, 2015, the Company acquired substantially all of the assets of Rae’ Launo Corporation (“RLC”) relating to its DSD and in-room distribution business in the Southeastern United States (the “RLC Acquisition”). The purchase price was $1.5 million, consisting of $1.2 million in cash paid at closing and earnout payments of up to $0.1 million that the Company expects to pay each year over a three-year period based on achievement of certain milestones.

The following table summarizes the estimated fair values of the assets acquired at the date of acquisition, based on the final purchase price allocation:

Fair Values of Assets Acquired			Estimated Useful Life (years)
(In thousands)
Property, plant and equipment	$	338
Intangible assets:
Non-compete agreement	20		3.0
Customer relationships	870		4.5
Goodwill	272
Total assets acquired	$	1,500

Definite-lived intangible assets consist of a non-compete agreement and customer relationships. Total net carrying value of definite-lived intangible assets as of June 30, 2016 and 2015 was $0.6 million and $0.8 million, respectively, and accumulated amortization as of June 30, 2016 and 2015 was $0.3 million and $0.1 million, respectively. Estimated aggregate amortization of definite-lived intangible assets, calculated on a straight-line basis and based on estimated fair values is $0.2 million in each of the next three fiscal years commencing with fiscal 2017.