Note I - Goodwill and Other Intangibles

9 Months Ended

Mar. 30, 2018

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

I.     Goodwill and Other Intangibles

The Company reviews goodwill for impairment on a reporting unit basis annually as of the end of the fiscal year, and whenever events or circumstances (“triggering events”) indicate that the carrying value of goodwill

may

not

be recoverable. The Company monitors for interim triggering events on an ongoing basis. Such triggering events include unfavorable operating results and macroeconomic trends.

The fair value of reporting units is primarily driven by projected growth rates and operating results under the income approach using a discounted cash flow model, which applies an appropriate market-participant discount rate, and consideration of other market approach data from guideline public companies. If declining actual operating results or future operating results become indicative that the fair value of the Company’s reporting units has declined below their carrying values, an interim goodwill impairment test

may

need to be performed and

may

result in a non-cash goodwill impairment charge.

As of

March 30, 2018

and

June 30, 2017,

goodwill pertains solely to the European Industrial reporting unit.

For the quarter ended

March 30, 2018,

the Company performed a review of potential triggering events, and concluded there were

no

triggering events that indicated that the fair value of its European Industrial reporting unit had

not

more likely than

not

declined to below its carrying value at

March 30, 2018.

The Company will perform its annual impairment test for this reporting unit as of

June 30, 2018.

The changes in the carrying amount of goodwill are summarized as follows:

	Net Book Value Rollforward
	Gross Carrying Amount		Accumulated Impairment			Net Book Value
Balance at June 30, 2017	$	16,407	$	(13,822	)	$	2,585
Translation adjustment		258		-			258
Balance at March 30, 2018	$	16,665	$	(13,822	)	$	2,843

At

March 30, 2018,

the following acquired intangible assets have definite useful lives and are subject to amortization:                

	Net Book Value Rollforward								Net Book Value By Asset Type
	Gross Carrying Amount		Accumulated Amortization / Impairment			Net Book Value			Licensing agreements			Trade Name			Other
Balance at June 30, 2017	$	13,436	$	(11,632	)	$	1,804		$	390		$	1,319		$	95
Addition		19		-			19			-			-			19
Amortization		-		(135	)		(135	)		(45	)		(66	)		(24	)
Translation adjustment		139		-			139			-			129			10
Balance at March 30, 2018	$	13,594	$	(11,767	)	$	1,827		$	345		$	1,382		$	100

The weighted average remaining useful life of the intangible assets included in the table above is approximately

13

years.

Intangible amortization expense was

$46

and

$41

for the quarters ended

March 30, 2018,

and

March 31, 2017,

respectively. Intangible amortization expense was

$135

and

$126

for the

three

quarters ended

March 30, 2018,

and

March 31, 2017,

respectively. Estimated intangible amortization expense for the remainder of fiscal

2018

and each of the next

five

fiscal years is as follows:

Fiscal Year
2018	$	59
2019		191
2020		176
2021		161
2022		154
2023		153

The gross carrying amount of the Company’s intangible assets that have indefinite lives and are

not

subject to amortization as of

March 30, 2018

and

June 30, 2017

was

$214

and

$205,

respectively. These assets are comprised of acquired trade names.