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Intangible Assets
12 Months Ended
Jun. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Intangible Assets

7.Intangible Assets

Our other intangible assets as of June 30, 2019 and 2018 are as follows (in thousands):

 

 

 

June 30, 2019

 

 

June 30, 2018

 

 

 

Gross

 

 

 

 

 

 

Impact of

 

 

 

 

 

 

Net

 

 

Gross

 

 

 

 

 

 

Net

 

 

 

Carrying

 

 

Impairments

 

 

foreign

 

 

Accumulated

 

 

Carrying

 

 

Carrying

 

 

Accumulated

 

 

Carrying

 

 

 

Amount

 

 

 

 

 

 

currency

 

 

Amortization

 

 

Amount

 

 

Amount

 

 

Amortization

 

 

Amount

 

Customer/Distributor Relationships

 

$

3,249

 

 

$

(589

)

 

$

(7

)

 

$

(2,653

)

 

$

-

 

 

$

3,329

 

 

$

(2,219

)

 

$

1,110

 

Trade Name

 

 

2,523

 

 

 

(795

)

 

 

(8

)

 

 

(1,059

)

 

 

661

 

 

 

2,586

 

 

 

(862

)

 

 

1,724

 

Software

 

 

1,902

 

 

 

-

 

 

 

-

 

 

 

(747

)

 

 

1,155

 

 

 

1,490

 

 

 

(504

)

 

 

986

 

Other

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

124

 

 

 

(124

)

 

 

-

 

Total

 

$

7,674

 

 

$

(1,384

)

 

$

(15

)

 

$

(4,459

)

 

$

1,816

 

 

$

7,529

 

 

$

(3,709

)

 

$

3,820

 

 

In the fourth quarter of fiscal 2019, due to impairment indicators, we assessed whether the carrying amounts of our long-lived assets in the CMM reporting unit (asset group) may not be recoverable and therefore may be impaired.  To assess the recoverability, the undiscounted cash flows of the asset group were analyzed over a range of potential remaining useful lives with the customer relationships as the primary asset.  The result was that the asset group carrying value exceeded the sum of the undiscounted cash flows. After a fair value analysis, we determined our trade name and customer relationships were not recoverable and were impaired.  As a result, we recorded a non-cash definite-lived asset impairment loss of $0.6 million and $0.8 million, respectively, for the Customer/Distributor Relationship and Trade Name intangible assets, which is recorded in “Severance, impairment and other charges” on our Consolidated Statement of Operations.  We also reviewed the remaining useful life of our Trade Name and determined that no significant change was necessary.

The impairment was determined by comparing the fair value of each of the intangible assets to their respective carrying value.  The fair value of the trade name was determined using the relief from royalty method and the fair value of the customer relationships was determined using the income approach.

 

Amortization expense for the fiscal years ended June 30, 2019 and 2018 was $956,000 and $1,168,000, respectively.

The estimated amortization of the remaining intangible assets by year is as follows (in thousands):

 

Years Ending June 30,

 

Amount

 

2020

 

 

344

 

2021

 

 

352

 

2022

 

 

388

 

2023

 

 

354

 

2024

 

 

300

 

after 2024

 

 

78

 

 

 

$

1,816

 

Collectively, the weighted average amortization period of intangible assets subject to amortization is approximately 5.3 years.  The intangible assets, except for software, are amortized over the period of economic benefit or on a straight-line basis.  Software is amortized based on forecasted utilization over the economic life of the software program.