Goodwill

12 Months Ended

Jun. 30, 2019

Business Combination Goodwill [Abstract]

Goodwill

6.Goodwill

Our goodwill balance as of June 30, 2019 and 2018 is as follows (in thousands):

	2019			2018
Balance at beginning of year	$	7,985		$	7,793
Impairment		(6,020	)		-
Impact of foreign currency		(224	)		192
Balance at end of year	$	1,741		$	7,985

Based on the results of the 2019 annual impairment test, the fair value of our CMM reporting unit was less than its carrying value. As a result, we recorded a non-cash goodwill impairment charge of $6.0 million due to the lack of projected revenue growth in the sales of our Off-Line Measurement Solutions. The lack of growth in the sales of our Off-Line Measurement Solutions is primarily due to companies postponing decisions about purchasing new capital goods such as CMMs.  This impairment is not deductible for income tax purposes. The impairment loss is recorded in “Severance, impairment and other charges” on our Consolidated Statements of Operations.  After the impairment charge, the adjusted carrying value of CMM’s goodwill was $1.8 million as of June 30, 2019 compared to $8.0 million as of June 30, 2018.