XML 101 R13.htm IDEA: XBRL DOCUMENT

Note 6 - Goodwill and Intangibles

12 Months Ended

Jun. 30, 2012

Goodwill and Intangible Assets Disclosure [Text Block]

6. GOODWILL AND INTANGIBLES

The following tables present information about the Company’s intangible assets on the dates indicated (in thousands):

	June 30, 2012							June 30, 2011
	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Goodwill	$	3,034	$	-		$	3,034	$	-	$	-		$	-
Other intangible assets		15,858		(7,103	)		8,755		6,276		(6,045	)		231

Amortizable intangible assets consist of the following (in thousands):

	June 30, 2012			June 30, 2011
Non-compete agreements	$	600		$	-
Trademarks and trade names		1,480			-
Completed technology		2,292			-
Customer relationships		4,950			-
Backlog		260			-
Other intangible assets		6,276			6,276
Total		15,858			6,276
Accumulated amortization		(7,103	)		(6,045	)
Total net balance	$	8,755		$	231

Amortizable intangible assets are being amortized on a straight-line basis over the period of expected economic benefit. Amortization expense of $869 thousand was recorded on the Bytewise acquisition assets as of June 30, 2012.

The estimated useful lives of the intangible assets subject to amortization are 14 years for trademarks and trade names, 8 years for non-compete agreements, 10 years for completed technology, 8 years for customer relationships and 0.5 years for backlog.

The estimated aggregate amortization expense, for each of the next five years, and thereafter, is as follows (in thousands):

Fiscal Year
2013	$	1,079
2014		1,057
2015		1,057
2016		1,057
2017		1,057
Thereafter		3,448

The Company performed its annual goodwill impairment test for Kinemetric as of June 26, 2010. The results indicated that goodwill in the Kinemetric reporting unit was fully impaired, resulting in a $1.1 million impairment recorded in the fourth quarter of fiscal 2010. The impairment charge was primarily the result of continued sales declines and the decline in the forecasted cash flows expected by the Company.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References+ Details