Goodwill and Intangibles

9 Months Ended

Mar. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill for both the Service Center Based Distribution segment and the Engineered Solutions segment for the fiscal year ended June 30, 2024 and the nine month period ended March 31, 2025 are as follows:


	Service Center Based Distribution		Engineered Solutions		Total
Balance at June 30, 2023	$	211,231	$	367,187	$	578,418
Goodwill acquired during the period	9,712		32,634		42,346

Other, primarily currency translation	(1,369)		—		(1,369)
Balance at June 30, 2024	$	219,574	$	399,821	$	619,395
Goodwill acquired/adjusted during the period	2,262		74,358		76,620

Other, primarily currency translation	(1,822)		—		(1,822)
Balance at March 31, 2025	$	220,014	$	474,179	$	694,193

During the third quarter of fiscal 2025, the Company recorded working capital adjustments related to the Kopar acquisition, which increased the purchase price by $645, decreased the fair value of net tangible assets acquired by $290, and increased goodwill by $935. During the third quarter of fiscal 2025, the Company recorded working capital adjustments related to the TMS acquisition, which decreased the purchase price by $475, increased the fair value of net tangible assets acquired by $91, and decreased goodwill by $566. Further, during the third quarter of fiscal 2025, the Company recorded purchase accounting and working capital adjustments related to the Hydradyne acquisition, which increased the purchase price by $6,045, decreased the fair value of net assets acquired by $1,751, increased net intangible assets by $410, and increased goodwill by $7,386.

The Company has eight (8) reporting units for which an annual goodwill impairment assessment was performed as of January 1, 2025. Based on the assessment performed, the Company concluded that the fair value of all of the reporting units exceeded their carrying amount as of January 1, 2025, therefore no impairment exists.

At March 31, 2025 and June 30, 2024, accumulated goodwill impairment losses subsequent to fiscal year 2002 totaled $64,794 related to the Service Center Based Distribution segment and $167,605 related to the Engineered Solutions segment.

The Company’s identifiable intangible assets resulting from business combinations are amortized over their estimated period of benefit and consist of the following:


March 31, 2025	Amount		Accumulated Amortization		Net Book Value
Finite-Lived Identifiable Intangibles:
Customer relationships	$	503,249	$	224,640	$	278,609
Trade names	107,550		39,739		67,811
Other	6,802		2,276		4,526
Total Identifiable Intangibles	$	617,601	$	266,655	$	350,946


June 30, 2024	Amount		Accumulated Amortization		Net Book Value
Finite-Lived Identifiable Intangibles:
Customer relationships	$	394,114	$	205,422	$	188,692
Trade names	88,848		34,891		53,957
Other	4,946		1,725		3,221
Total Identifiable Intangibles	$	487,908	$	242,038	$	245,870

Fully amortized finite-lived identifiable intangible assets are written off in the period when they become fully amortized.

During the nine month period ended March 31, 2025, the Company acquired identifiable intangible assets with a preliminary acquisition cost allocation and weighted-average life as follows:


	Acquisition Cost Allocation		Weighted-Average life
Customer relationships	$	109,848	20.0
Trade names	18,720		15.0
Other	1,945		13.9
Total Identifiable Intangibles	$	130,513	19.2

Identifiable intangible assets with finite lives are reviewed for impairment when changes in conditions indicate carrying value may not be recoverable.

Estimated future amortization expense by fiscal year (based on the Company’s identifiable intangible assets as of March 31, 2025) for the next five years is as follows: $10,000 for the remainder of 2025, $38,900 for 2026, $36,300 for 2027, $34,000 for 2028, $31,800 for 2029 and $29,900 for 2030.