Goodwill and Other Identifiable Intangible Assets

12 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Identifiable Intangible Assets

In accordance with ASC 350, Intangibles - Goodwill and Other Intangible Assets, the Company performs its annual goodwill impairment test during the fourth quarter of each fiscal year, or whenever indicators of impairment are present. The reporting units utilized for goodwill impairment tests align directly with our operating segments, Worldwide Barcode, Networking & Security and Worldwide Communications & Services. The testing includes the determination of each reporting unit's fair value using a discounted cash flows model compared to each reporting unit's carrying value. Key assumptions used in determining fair value include projected growth and operating margin, working capital requirements and discount rates. During fiscal years ended June 30, 2019, 2018 and 2017, no impairment charges related to goodwill were recorded.

Changes in the carrying amount of goodwill for the years ended June 30, 2019 and 2018, by reportable segment, are set forth in the table below. Additions to goodwill for fiscal years 2019 and 2018 are due to the recent acquisitions.



	Worldwide Barcode, Networking & Security Segment			Worldwide Communications & Services Segment			Total
	(in thousands)
Balance at June 30, 2017	$	36,260		$	164,621		$	200,881
Additions	101,198			—			101,198
Unrealized loss on foreign currency translation	(244		)	(3,661		)	(3,905		)
Balance at June 30, 2018	$	137,214		$	160,960		$	298,174
Additions	—			21,854			21,854
Unrealized loss on foreign currency translation	(137		)	(353		)	(490		)
Balance at June 30, 2019	$	137,077		$	182,461		$	319,538

The following table shows the Company’s identifiable intangible assets as of June 30, 2019 and 2018, respectively.



	June 30, 2019						June 30, 2018
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
	(in thousands)
Amortized intangible assets:
Customer relationships	$	143,541	$	51,823	$	91,718	$	139,479	$	40,337	$	99,142
Trade names	23,831		11,320		12,511		27,123		12,224		14,899
Non-compete agreements	3,094		1,714		1,380		3,064		1,221		1,843
Distributor agreements	354		210		144		363		188		175
Supplier partner program	3,583		815		2,768		3,583		456		3,127
Encryption key library	19,900		4,768		15,132		19,900		2,280		17,620
Developed technology	4,512		226		4,286		—		—		—
Total intangibles	$	198,815	$	70,876	$	127,939	$	193,512	$	56,706	$	136,806

During fiscal year 2019, the Company acquired customer relationships, trade names, non-compete agreements and developed technology related to the acquisitions of Canpango and RPM. The Company also disposed of fully amortized trade names and non-compete agreements from prior acquisitions.

The weighted-average amortization period for all intangible assets was approximately 9 years for the year ended June 30, 2019, compared to 10 years for years ended June 30, 2018 and 2017. Amortization expense for the years ended June 30, 2019, 2018 and 2017 was $19.7 million, $20.7 million and $15.5 million, respectively, all of which relates to selling, general and administrative costs, not the cost of selling goods, and has been presented as such in the accompanying Consolidated Income Statements.

Estimated future amortization expense is as follows:



	Amortization Expense
	(in thousands)
Year Ended June 30,
2020	$	19,075
2021	19,489
2022	17,698
2023	16,588
2024	16,443
Thereafter	38,646
Total	$	127,939