GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Jun. 27, 2015

Goodwill And Intangible Assets Disclosure [Abstract]

NOTE F. GOODWILL AND OTHER INTANGIBLE ASSETS

The reporting units used in assessing goodwill are the same as the Company’s reportable segments, Process Products and Environmental Systems. The goodwill acquired with the purchase of CCA is allocated and assessed at the Environmental Systems segment, and the remaining goodwill is assessed at the Process Products segment.

Goodwill

The following table shows the activity and balances related to goodwill from June 29, 2013 through June 27, 2015 (in thousands):

	Environmental		Process
	Systems		Products			Total
Balance as of June 29, 2013	$	-	$	30,429		$	30,429
Goodwill acquired		5,951		-			5,951
Goodwill impaired		-		(20,304	)		(20,304	)
Balance as of June 28, 2014		5,951		10,125			16,076
Allocation from sale of heat exchanger product line		-		(277	)		(277	)
Goodwill impaired		-		-			-
Balance as of June 27, 2015	$	5,951	$	9,848		$	15,799

In March 2015, the Company sold its heat exchanger product line including the Alco, Alco-Twin and Bos Hatten brands for $2.3 million. The sale resulted in a gain of $1.2 million included with Other income on the Consolidated Statements of Operations. The goodwill associated with the sale of the heat exchanger product line was previously included in the Process Products segment.

In fiscal 2014, the financial performance of the Process Products reporting segment did not meet Management’s expectations and anticipated future cash flows had greater risks and uncertainties with regard to the timing and trajectory, resulting in an impairment charge of $20.3 million to goodwill and $6.3 million in intangible assets with indefinite lives in fiscal 2014. The impairment charge is included in the Consolidated Statement of Operations as a loss on impairment of goodwill and loss on impairment of intangibles.

Acquisition-Related Intangibles

Acquisition-related intangible assets are as follows (in thousands):

	Weighted Average Remaining Useful Life (Years)	Gross Value at Beginning of Year		Adjustments			Gross Value at End of Year		Accumulated Amortization at Beginning of Year			Adjustments		Amortization expense			Accumulated Amortization at End of Year			Net Book Value
Fiscal 2015
Design guidelines	Indefinite	$	4,060	$	(350	)	$	3,710	$	-		$	-	$	-		$	-		$	3,710
Customer relationships	7		8,840		(325	)		8,515		(4,112	)		186		(668	)		(4,594	)		3,921
Trade names	Indefinite		3,082		(272	)		2,810		-			-					-			2,810
Licensing agreements	0		2,199		-			2,199		(2,199	)		-		-			(2,199	)		-
Acquired backlog	0		6,861		-			6,861		(6,861	)		-					(6,861	)		-
		$	25,042	$	(947	)	$	24,095	$	(13,172	)	$	186	$	(668	)	$	(13,654	)	$	10,441

Fiscal 2014
Design guidelines	Indefinite	$	6,940	$	(2,880	)	$	4,060	$	-		$	-	$	-		$	-		$	4,060
Customer relationships	7		7,940		900			8,840		(3,429	)		-		(683	)		(4,112	)		4,728
Trade names	Indefinite		4,729		(1,647	)		3,082		-			-					-			3,082
Licensing agreements	0		2,199		-			2,199		(2,199	)		-		-			(2,199	)		-
Acquired backlog	0		6,801		60			6,861		(6,801	)		-		(60	)		(6,861	)		-
		$	28,609	$	(3,567	)	$	25,042	$	(12,429	)	$	-	$	(743	)	$	(13,172	)	$	11,870

Fiscal 2015 adjustments to the gross value include a reduction of $0.5 from the sale of the heat exchanger product line plus $0.4 million of intangibles impaired. Fiscal 2015 adjustments to accumulated amortization include a reduction of $0.2 million from the sale of the heat exchanger product line. Fiscal 2014 adjustments include additional intangibles of $2.8 million from the CCA acquisition, less $6.3 million of intangibles impaired.

Amortization expense of $0.7 million, $0.7 million, and $1.0 million was recorded to the Consolidated Statements of Operations for fiscal 2015, 2014 and 2013, respectively, presented in general and administrative expenses. The estimated amortization expense for each of the next five fiscal years is as follows (in thousands):

Fiscal Year
2016	$	579
2017		578
2018		573
2019		573
2020		573

- 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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