Goodwill

12 Months Ended

Jul. 02, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

During the first quarter of fiscal 2021, the Company reorganized its internal reporting unit structure to align with the Company's market and brand strategy as well as promote scale as the organization continues to grow.

In accordance with FASB ASC 350, Intangibles-Goodwill and Other (“ASC 350”), the Company determines its reporting units based upon whether discrete financial information is available, if management regularly reviews the operating results of the component, the nature of the products offered to customers and the market characteristics of each reporting unit. A reporting unit is considered to be an operating segment or one level below an operating segment also known as a component. Component level financial information is reviewed by management across three divisions: Processing, Microelectronics and Mission. Accordingly, these were determined to be the Company's new reporting units.

The internal reorganization and change in reporting units qualified as a triggering event and required goodwill to be tested for impairment. As required by ASC 350, the Company tested goodwill for impairment immediately before and after the reorganization. As a result of these analyses, it was determined that goodwill was not impaired before or after the reorganization.

In the first quarter ended October 2, 2020, the Company assigned goodwill to the new reporting units based on the relative fair value of reporting units.

The following table sets forth the changes in the carrying amount of goodwill for the year ended July 2, 2021:


	Total
Balance at July 3, 2020	$	614,076
Goodwill adjustment for the APC acquisition	346
Goodwill arising from the POC acquisition	155,259
Goodwill arising from the Pentek acquisition	35,225
Balance at July 2, 2021	$	804,906

The Company performed its annual goodwill impairment test in the fourth quarter of fiscal 2021 with no impairment noted.