GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Feb. 25, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

5.  GOODWILL AND INTANGIBLE ASSETS

The carrying value of goodwill was $6.3 million as of February 25, 2017, and May 28, 2016.

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 IMES reporting unit which is included in 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 over their useful lives either on a straight-line basis or over their projected future cash flows 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 are as follows (in thousands):

	Intangible Assets Subject to Amortization as of
	February 25, 2017		May 28, 2016
Gross Amounts:
Trade Name	$	659	$	659
Customer Relationship		3,390		3,434
Non-compete Agreements		177		177
Technology		230		230
Total Gross Amounts	$	4,456	$	4,500
Accumulated Amortization:
Trade Name	$	388	$	231
Customer Relationship		420		374
Non-compete Agreements		75		55
Technology		45		22
Total Accumulated Amortization	$	928	$	682
Net Intangible Assets	$	3,528	$	3,818

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

Fiscal Year	Amortization Expense
Remaining 2017	$	90
2018		431
2019		244
2020		256
2021		245
Thereafter		2,262
Total amortization expense	$	3,528

The weighted average number of years of amortization expense remaining is 15.7 years.