GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Feb. 27, 2016

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		6,332
Balance at February 27, 2016	$	6,332

 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 and are tested for impairment when events or changes in circumstances occur that indicate possible impairment.

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
	February 27, 2016		May 30, 2015
Gross Amounts:
Trade Name	$	659	$	29
Customer Relationship		3,419		948
Non-compete Agreements		177		47
Technology		230		—
Total Gross Amounts	$	4,485	$	1,024
Accumulated Amortization:
Trade Name	$	178	$	29
Customer Relationship		347		221
Non-compete Agreements		47		31
Technology		16		—
Total Accumulated Amortization	$	588	$	281
Net Intangibles	$	3,897	$	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	$	112
2017		439
2018		438
2019		226
2020		217
Thereafter		2,465
Total amortization expense	$	3,897

The weighted average number of years of amortization expense remaining is 16.7 years.