Goodwill and Intangibles Assets

12 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

6. Goodwill and Intangible Assets

The Company has three reporting units under which goodwill has been allocated.

We completed our qualitative goodwill impairment analysis for our reporting units during the fourth quarter and concluded it was not more-likely-than-not that the fair value of the goodwill exceeded its carrying value and no further testing was required.

The following is a rollforward of the Company’s goodwill by segment:


(in thousands)	Wholesale			Direct-to-Consumer			Business-to-Business			Total
Balance at June 30, 2020	$	85,940		$	1,183		$	-		$	87,123
Kunde		2,868			10,167			745			13,780
Sommelier		-			8,992			-			8,992
Balance at June 30, 2021		88,808			20,342			745			109,895
Vinesse		-			9,477			-			9,477
ACE Cider		27,539			-			-			27,539
Meier's		-			-			8,247			8,247
Measurement period adjustments		(43	)		(153	)		(11	)		(207	)
Balance at June 30, 2022	$	116,304		$	29,666		$	8,981		$	154,951

As of June 30, 2022 and 2021, the gross goodwill balance and accumulated impairment losses are $155.0 million and $109.9 million, and $246.0 thousand and $246.0 thousand, respectively.

Intangible assets are comprised of indefinite and definite lived assets. The definite lived assets are amortized on a straight-line basis, which reflects the expected pattern in which the economic benefits of the intangible assets are being obtained, over an estimated useful life of three to six years.

The components of finite-lived intangible assets, accumulated amortization, and indefinite-lived assets are as follows:


	June 30, 2022
(in thousands)	Gross Intangible		Accumulated Amortization			Net Intangible		Weighted Average Remaining Amortization Period (in years)
Indefinite-life intangibles
Trade names and trademarks	$	30,203	$	-		$	30,203	N/A
Winery use permits		6,750		-			6,750	N/A
Total Indefinite-life intangibles		36,953		-			36,953

Definite-life intangibles
Customer and Sommelier relationships		30,700		(4,922	)		25,778	4.4
Trade names and trademarks		1,900		(254	)		1,646	3.5
Total definite-life intangibles		32,600		(5,176	)		27,424
Total other intangible assets	$	69,553	$	(5,176	)	$	64,377


	June 30, 2021
(in thousands)	Gross Intangible		Accumulated Amortization			Net Intangible		Weighted Average Remaining Amortization Period (in years)
Indefinite-life intangibles
Trade names and trademarks	$	23,229	$	-		$	23,229	N/A
Winery use permits		6,750		-			6,750	N/A
Total Indefinite-life intangibles		29,979		-			29,979

Definite-life intangibles
Customer and Sommelier relationships		6,300		(200	)		6,100	4.7
Total definite-life intangibles		6,300		(200	)		6,100
Total other intangible assets	$	36,279	$	(200	)	$	36,079

We recognized trademark impairments of zero and $1.1 million for the years ended June 30, 2022 and 2021, respectively, resulting from a decline in projected future cash inflows for specific trademarks. We estimate the fair value of our trademarks using the relief-from-royalty method. Impairment losses are recognized as a component of non-allocable costs in each applicable reporting period.

Amortization expense of definite-lived intangible assets was $5.0 million and $0.1 million for the years ended June 30, 2022 and 2021, respectively.

As of June 30, 2022, the estimated future amortization expense for finite-lived intangible assets is as follows:


(in thousands)
2023	$	6,822
2024		6,811
2025		5,291
2026		4,527
Thereafter		3,973
Total estimated amortization expense	$	27,424