NOTE

— GOODWILL AND OTHER INTANGIBLE ASSETS

Carrying values of goodwill and other intangible assets with indefinite lives are reviewed at least annually for possible impairment. The Company

may

first

assess qualitative factors in order to determine if goodwill and indefinite-lived intangible assets are impaired. If through the qualitative assessment it is determined that it is more likely than

not

that goodwill and indefinite-lived assets are

not

impaired,

further testing is required. If it is determined more likely than

not

that goodwill and indefinite-lived assets are impaired, or if the Company elects

not

first

assess qualitative factors, the Company’s impairment testing continues with the estimation of the fair value of reporting units and indefinite-lived intangible assets using a combination of a market approach and an income (discounted cash flow) approach, at the reporting unit level. The estimation of the fair value of reporting units and intangible assets requires significant management judgment with respect to revenue and expense growth rates, changes in working capital and the selection and use of an appropriate discount rate. The estimates of fair value of reporting units are based on the best information available as of the date of the assessment. The use of different assumptions would increase or decrease estimated discounted future operating cash flows and could increase or decrease an impairment charge. Company management uses its judgment in assessing whether assets

may

have become impaired between annual impairment tests. Indicators such as adverse business conditions, a sustained significant drop in the Company’s stock price, economic factors

, technological change

, or competitive activities

may

signal that an asset has become impaired.

The Company identified its reporting units in conjunction with its annual goodwill impairment testing. The Company relies upon a number of factors, judgments and estimates when conducting its impairment testing including, but

not

limited to, the Company’s stock price, operating results, forecasts, anticipated future cash flows and marketplace data

. There are inherent uncertainties related to these factors and judgments in applying them to the analysis of goodwill impairment.

As of

March 1, 2017,

the Company performed its annual goodwill impairment test on the

three

reporting units that contain goodwill (excluding Atlas Lighting Products). The goodwill impairment test on

one

reporting unit in the Lighting Segment passed with a business enterprise value that was

$60.0

million or

80%

above the carrying value of this reporting unit including goodwill. The goodwill impairment test of the

one

reporting unit with goodwill in the Graphics Segment passed with an estimated business enterprise value that was

$4.2

million or

424%

above the carrying value of the reporting unit including goodwill. The goodwill impairment test of the reporting unit in the Technology Segment that contains goodwill passed with an estimated business enterprise value that was

$23.2

million or

95%

above the carrying value of this reporting unit including goodwill

The Company has performed an assessment of goodwill from the date of the annual test through the balance sheet date for possible triggering events and has concluded that there were

triggering events that would indicate the assets are impaired. There were

changes to the qualitative factors from the date of the Atlas acquisition that would indicate the goodwill is impaired.

As of

March 1, 2016,

the Company performed its annual goodwill impairment test on the

three

reporting units that contain goodwill. The goodwill impairment test in the Lighting Segment passed with a business enterprise value that was

$89.0

million or

112%

above the carrying value of this reporting unit including goodwill. The goodwill impairment test of the

one

reporting unit with goodwill in the Graphics Segment passed with an estimated business enterprise value that was

$1.7

million or

183%

$15.4

million or

59%

above the carrying value of this reporting unit including goodwill.

The Company acquired all of the capital stock of Atlas Lighting Products, Inc., on

February 21, 2017 (

see Note

). The total purchase price exceeded the estimated fair value of net assets by approximately

$48.0million,

which was allocated to goodwill. The Company completed its valuation of the goodwill and intangible assets in

March 2017

and purchase price allocations have been made at

February 21, 2017.

While identified intangible assets related to the Atlas acquisition are being amortized effective

February 21, 2017

over appropriate lives, goodwill will

not

be amortized on the Company’s financial statements. Goodwill and intangible assets related to Atlas Lighting Products are included in the assets of the Lighting Segment. Refer to Note

for additional information on the intangible assets of Atlas Lighting Products.

The following table presents information about the Company's goodwill on the dates or for the periods indicated:

Goodwill
(In thousands)	Lighting			Graphics			Technology
	Segment			Segment			Segment			Total
Balance as of June 30, 2016
Goodwill	$	34,913		$	28,690		$	11,621		$	75,224
Accumulated impairment losses		(34,778	)		(27,525	)		(2,413	)		(64,716	)
Goodwill, net as of June 30, 2016	$	135		$	1,165		$	9,208		$	10,508

Goodwill acquired	$	48,030		$	--		$	--		$	48,030

Balance as of June 30, 2017
Goodwill	$	82,943			28,690			11,621			123,254
Accumulated impairment losses		(34,778	)		(27,525	)		(2,413	)		(64,716	)
Goodwill, net as of June 30, 2017	$	48,165		$	1,165		$	9,208		$	58,538

The Company performed its annual review of indefinite-lived intangible assets as of

March 1, 2017

and determined there was

impairment. The indefinite-lived intangible impairment test passed with a fair market value that was

$15.2

million or

445%

above its carrying value. The Company has performed an assessment of its intangible assets from the date of the annual test through the balance sheet date for possible triggering events and has concluded that there were

triggering events that would indicate the assets are impaired.

March 2017,

a customer relationship intangible asset with a net book value of

479,000

related to the LED video screen product line in the Graphics Segment was determined to be fully impaired. The Company deemed that

distribution channels and corresponding projected future cash flows that support the customer list intangible asset are

not

adequate to support the asset.

As of

March 1, 2016,

the Company performed its annual review of indefinite-lived intangible assets and determined there was

impairment. The indefinite-lived intangible asset impairment test passed with a fair market value that was $

8.4

million or

245%

above its carrying value.

In the

first

quarter of fiscal

2015,

the Company sold LSI Saco Technologies Inc. A customer relationship intangible asset with a gross carrying amount of

$1,306,000

and accumulated amortization of

$428,000

was sold as a result of the sale of LSI Saco Technologies (See Note

The gross carrying amount and accumulated amortization by major other intangible asset class is as follows:

	June 30, 2017
Other Intangible Assets	Gross
(In thousands)	Carrying		Accumulated		Net
	Amount		Amortization		Amount
Amortized Intangible Assets
Customer relationships	$	35,563	$	7,956	$	27,607
Patents		338		186		152
LED technology firmware, software		16,066		11,237		4,829
Trade name		2,658		499		2,159
Non-compete agreements		710		710		-
Total Amortized Intangible Assets		55,335		20,588		34,747

Indefinite-lived Intangible Assets
Trademarks and trade names		3,422		--		3,422
Total Indefinite-lived Intangible Assets		3,422		--		3,422

Total Other Intangible Assets	$	58,757	$	20,588	$	38,169

	June 30, 2016
Other Intangible Assets	Gross
	Carrying		Accumulated		Net
(In thousands)	Amount		Amortization		Amount
Amortized Intangible Assets
Customer relationships	$	9,316	$	7,581	$	1,735
Patents		338		154		184
LED technology firmware, software		11,228		10,989		239
Trade name		460		460		--
Non-compete agreements		710		704		6
Total Amortized Intangible Assets		22,052		19,888		2,164

Indefinite-lived Intangible Assets
Trademarks and trade names		3,422		--		3,422
Total Indefinite-lived Intangible Assets		3,422		--		3,422

Total Other Intangible Assets	$	25,474	$	19,888	$	5,586

	Amortization Expense of Other Intangible Assets
(In thousands)	2017		2016		2015

Amortization Expense	$	1,257	$	506	$	527

The Company expects to record annual amortization expense as follows:

(In thousands)

2018	$	2,760
2019	$	2,760
2020	$	2,687
2021	$	2,682
2022	$	2,461
After 2022	$	21,397