Goodwill and Other Intangible Assets

3 Months Ended

Oct. 01, 2011

Goodwill and Other Intangible Assets [Abstract]

5. GOODWILL AND OTHER INTANGIBLE ASSETS

All goodwill and other intangible assets are allocated to the Process Products segment.

Acquisition-Related Intangibles

Acquisition-related intangible assets are as follows:


	Weighted
	Average
	Estimated							Net Book							Net Book
	Useful Life		Gross Value		Accumulated			Value		Gross Value		Accumulated			Value
	(Years)		October 1, 2011		Amortization			October 1, 2011		July 2, 2011		Amortization			July 2, 2011

Design guidelines	Indefinite		$	6,940	$	—		$	6,940	$	6,940	$	—		$	6,940
Customer relationships		13		6,890		(2,346	)		4,544		6,890		(2,204	)		4,686
Trade names	Indefinite			4,729		—			4,729		4,729		—			4,729
Licensing agreements		5		2,199		(1,503	)		696		2,199		(1,393	)		806
Acquired backlog		0.7		6,489		(6,489	)		—		6,489		(6,489	)		—

			$	27,247	$	(10,338	)	$	16,909	$	27,247	$	(10,086	)	$	17,161

Amortization expense of $252 and $270 were recorded to the Consolidated Statements of Operations for the three months ended October 1, 2011 and October 2, 2010, respectively. The Company’s estimated amortization for the current and each of the next five fiscal years is as follows:


Estimated Amortization Expense
For the fiscal years ended
June 30, 2012	$	753
June 29, 2013		922
June 28, 2014		555
June 27, 2015		480
July 02, 2016		405
July 01, 2017		404

CEFCO Licensing Agreement

In July 2010, the Company entered into the CEFCO Process Manufacturing License Agreement (the “License Agreement”) with CEFCO Global Clean Energy, LLC, a Texas limited liability company (“CEFCO”). The Company advanced $1,100 to CEFCO at the inception of the License Agreement. The Company has deferred certain additional costs incurred related to the construction and testing of a scaled version of the technology as advances on future payments due under the License Agreement. As of October 1, 2011 and July 2, 2011, $3,195 and $2,947 were included in intangibles, net, respectively. Amortization of the CEFCO licensing agreement will be recognized over the life of the licensing agreement (10 years) commencing after the initial sale, construction and commissioning of a full scale version of the CEFCO processing technology.

- 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.

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