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Recent Accounting Pronouncements and Supplemental Information
 3 Months Ended
Sep. 30, 2022
Recent Accounting Pronouncements and Supplemental Information [Abstract]  
Recent Accounting Pronouncements and Supplemental Information Recent Accounting Pronouncements and Supplemental Information
Recently Issued Accounting Pronouncements Not Yet Adopted:
In October 2021, the Financial Accounting Standards Board issued guidance on accounting for contract assets and contract liabilities, related to revenue contracts with customers, during a business combination by the acquiring business entity. The acquirer is to measure the contract asset and contract liability as of the acquisition date as if the acquirer had originated the contracts. This is a departure from the current practice under U.S. GAAP of recognizing contract assets and contract liabilities at fair value as of the acquisition date. The guidance will be effective in our first quarter of fiscal year 2024, though early adoption is permitted. Management is unable to predict whether the adoption of this guidance will have a material impact on our financial statements.
Goodwill and Other Intangible Assets:
Goodwill represents the difference between the purchase price and the related underlying tangible and intangible net asset fair values resulting from business acquisitions. Goodwill is assigned to and the fair value is tested at the reporting unit level. Annually, or if conditions indicate an earlier review is necessary, we may assess qualitative factors to determine if it is more likely than not that the fair value is less than its carrying amount. We also have the option to bypass the qualitative assessment and proceed directly to performing the quantitative goodwill impairment test which compares the carrying value of the reporting unit to the reporting unit’s fair value to identify impairment. Under the quantitative assessment, if the fair value of the reporting unit is less than the carrying value, goodwill is written down to its fair value. The fair value is established primarily using a discounted cash flow analysis and secondarily a market approach utilizing current industry information. The calculation of the fair value of the reporting unit considers current market conditions existing at the assessment date and reporting unit specific scenarios weighted on probability of outcome.
Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for our business, and determination of our weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results, market conditions, and other factors. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for each reporting unit. While we have historically performed goodwill impairment testing annually during the second fiscal quarter, changes in circumstances may require interim assessments of the carrying amounts of our reporting units relative to their fair values.
As a result of revenue and earnings forecast declines within our Poppin reporting unit, we determined that a triggering event had occurred; therefore, we performed a quantitative assessment of the fair value of goodwill as of September 30, 2022. Based upon
our quantitative impairment assessment, we determined the fair value exceeded the carrying amount of our Poppin reporting unit thus no impairment was recorded. However, further changes to the assumptions regarding the future performance, an adverse change to macroeconomic conditions, or a change to other assumptions could result in additional impairment losses in the future, which could be significant. The goodwill within our Poppin reporting unit remains susceptible to future impairment charges due to narrow differences between fair value and carrying value resulting from the $34.1 million goodwill impairment charge recorded in fiscal year 2022 which was primarily driven by reductions in our long-term net sales and profitability projections. Our remaining goodwill within the Poppin reporting unit totals $36.7 million.
Other Intangible Assets reported on the Condensed Consolidated Balance Sheets consist of capitalized software, customer relationships, trade names, acquired technology, patents and trademarks, and non-compete agreements. Intangible assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable over the remaining lives of the assets. A summary of intangible assets subject to amortization is as follows:
 September 30, 2022June 30, 2022
(Amounts in Thousands)CostAccumulated
Amortization		Net ValueCostAccumulated
Amortization		Net Value
Capitalized Software$46,870 $35,664 $11,206 $46,246 $35,521 $10,725 
Customer Relationships12,000 3,894 8,106 19,050 10,518 8,532 
Trade Names36,570 7,725 28,845 36,570 6,811 29,759 
Acquired Technology7,000 1,814 5,186 7,000 1,563 5,437 
Patents and Trademarks354 55 299 354 47 307 
Non-Compete Agreements100 98 2 100 93 7 
Other Intangible Assets$102,894 $49,250 $53,644 $109,320 $54,553 $54,767 
A summary of the useful lives of intangible assets subject to amortization is as follows:
Years
Capitalized Software
3 to 13
Customer Relationships
10
Trade Names10
Acquired Technology7
Patents14
Trademarks15
Non-Compete Agreements5
Amortization expense incurred and future expected expenses related to intangible assets were:
Three months ended
September 30RemainderFuture Fiscal Years
(Amounts in Thousands)2022202120232024202520262027Thereafter
Amortization Expense$2,195 $2,439 $7,224 $9,240 $9,021 $8,638 $6,298 $13,223 
Capitalized software is stated at cost less accumulated amortization and is amortized using the straight-line method. During the software application development stage, capitalized costs include external consulting costs, cost of software licenses, and internal payroll and payroll-related costs for employees who are directly associated with a software project. Upgrades and enhancements are capitalized if they result in added functionality which enable the software to perform tasks it was previously incapable of performing. Software maintenance, training, data conversion, and business process re-engineering costs are expensed in the period in which they are incurred. 
Trade names, non-compete agreements, acquired technology, patents and trademarks are amortized on a straight-line basis over their estimated useful lives. Customer relationships are amortized based on estimated attrition rates of customers. We have no intangible assets with indefinite useful lives which are not subject to amortization.
Non-operating Income (Expense), net:
Non-operating income and expense include the impact of such items as fair value adjustments on Supplemental Employee Retirement Plan (“SERP”) investments, amortization of actuarial income, foreign currency rate movements, bank charges, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain or loss on SERP investments is offset by a change in the SERP liability that is recognized in selling and administrative expenses.
Components of the Non-operating income (expense), net line, were:
 Three Months Ended
 September 30
(Amounts in Thousands)20222021
Loss on SERP Investments$(459)$(93)
Other(31)(93)
Non-operating income (expense), net$(490)$(186)