GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Aug. 29, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

5. GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying value of goodwill are as follows (in thousands):

	Goodwill
Balance at May 30, 2015	$	—
Premium Paid for IMES Acquisition		3,746
Balance at August 29, 2015	$	3,746

Goodwill is initially recorded based on the premium paid for acquisitions and is subsequently tested for impairment, using the first day of our fourth quarter as the measurement date. We test goodwill for impairment annually and whenever events or circumstances indicates an impairment may have occurred, such as a significant adverse change in the business climate, loss of key personnel or a decision to sell or dispose of a reporting unit. The goodwill balance in its entirety relates to our Healthcare segment.

Intangible assets are initially recorded at their fair market values determined on quoted market prices in active markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized on a straight-line basis over their useful lives.

Our intangible assets represent the fair value for trade name, customer relationships, non-compete agreements, and technology acquired in connection with our acquisitions. Intangible assets subject to amortization as well as amortization expense are as follows (in thousands):

	Intangible Assets Subject  to Amortization as of
	August 29, 2015		May 30, 2015
Gross Amounts:
Trade Name	$	729	$	29
Customer Relationship		5,450		948
Non-compete Agreements		247		47
Technology		400		—
Total Gross Amounts	$	6,826	$	1,024
Accumulated Amortization:
Trade Name	$	29	$	29
Customer Relationship		245		221
Non-compete Agreements		24		31
Technology		—		—
Total Accumulated Amortization	$	298	$	281
Net Intangibles	$	6,528	$	743

  The amortization expense associated with the intangible assets subject to amortization for the next five years is presented in the following table (in thousands):

	Amortization Expense
Fiscal Year
Remaining 2016	$	567
2017		595
2018		593
2019		360
2020		350
Thereafter		4,063
Total amortization expense	$	6,528