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Recent Accounting Pronouncements and Supplemental Information
 6 Months Ended
Dec. 31, 2021
Recent Accounting Pronouncements and Supplemental Information [Abstract]  
Recent Accounting Pronouncements and Supplemental Information Recent Accounting Pronouncements and Supplemental Information
Recently Issued Accounting Pronouncements Not Yet Adopted:
In October 2021, the Financial Accounting Standards Board issued guidance on accounting for contract assets and contract liabilities, related to revenue contracts with customers, during a business combination by the acquiring business entity. The acquirer is to measure the contract asset and contract liability as of the acquisition date as if the acquirer had originated the contracts. This is a departure from the current practice under U.S. GAAP of recognizing contract assets and contract liabilities at fair value as of the acquisition date. The guidance will be effective for the Company in our first quarter of fiscal year 2024, though early adoption is permitted. Management is unable to predict whether the adoption of this guidance will have a material impact on the Company’s financial statements.
Goodwill and Other Intangible Assets:
Goodwill represents the difference between the purchase price and the related underlying tangible and intangible net asset fair values resulting from business acquisitions. Goodwill is assigned to and the fair value is tested at the reporting unit level. Annually, or if conditions indicate an earlier assessment is necessary, we may assess qualitative factors to determine if it is more likely than not that the fair value is less than its carrying amount. We also have the option to bypass the qualitative assessment and proceed directly to performing the quantitative goodwill impairment test which compares the carrying value of the reporting unit to the reporting unit’s fair value to identify impairment. Under the quantitative assessment, if the fair value of the reporting unit is less than the carrying value, goodwill is written down to its fair value. The fair value is established primarily using a discounted cash flow analysis and secondarily a market approach utilizing current industry information. The calculation of the fair value of the reporting unit considers current market conditions existing at the assessment date and reporting unit specific scenarios weighted on probability of outcome.
Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for our business, and determination of our weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results, market conditions, and other factors. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for each reporting unit. While we have historically performed goodwill impairment testing annually during the second fiscal quarter, changes in circumstances may require an interim assessment of the carrying amounts of the Company’s reporting units relative to their fair values.
In connection with our annual goodwill impairment test and the preparation of our financial statements, we assessed goodwill at the reporting unit level for impairment during our second quarter of fiscal year 2022 and based on our analysis our Poppin reporting unit had a carrying amount that exceeded its fair value. A forecast revision to delay future sales and earnings growth of
the Poppin reporting unit drove the decline in the fair value of the reporting unit, which was primarily attributable to changes in demand due to the ongoing COVID-19 pandemic and supply chain constraints. As a result, we recorded a goodwill impairment loss of $34.1 million during the second quarter of fiscal year 2022, as further discussed in Note 13. Fair Value of Notes to Condensed Consolidated Financial Statement.
The changes in the carrying amount of goodwill are summarized as follows:
(Amounts in Thousands)Gross GoodwillAccumulated ImpairmentNet Carrying Amount
June 30, 2020$12,893 $(1,733)$11,160 
Additions70,802 — 70,802 
June 30, 202183,695 (1,733)81,962 
Impairment— (34,118)(34,118)
December 31, 2021$83,695 $(35,851)$47,844 
See Note 3 - Acquisition of Notes to Condensed Consolidated Financial Statements for more information on this acquisition.
Other Intangible Assets reported on the Condensed Consolidated Balance Sheets consist of capitalized software, customer relationships, trade names, acquired technology, patents and trademarks, and non-compete agreements. Intangible assets are assessed for impairment when events or circumstances indicate that the carrying value may not be recoverable over the remaining lives of the assets. As a result of the downward revision in the forecasted operations of Poppin, management identified that a triggering event had occurred, indicating that certain long lived assets may not recoverable. The intangible assets of the Poppin reporting unit were assessed for impairment during the second quarter of fiscal year 2022, and no impairment was identified. A summary of intangible assets subject to amortization is as follows:
 December 31, 2021June 30, 2021
(Amounts in Thousands)CostAccumulated
Amortization		Net ValueCostAccumulated
Amortization		Net Value
Capitalized Software$44,629 $34,617 $10,012 $43,200 $34,058 $9,142 
Customer Relationships19,050 5,323 13,727 19,050 3,936 15,114 
Trade Names36,570 4,983 31,587 36,570 3,154 33,416 
Acquired Technology7,000 1,061 5,939 7,000 559 6,441 
Patents and Trademarks354 32 322 354 16 338 
Non-Compete Agreements100 83 17 100 73 27 
Other Intangible Assets$107,703 $46,099 $61,604 $106,274 $41,796 $64,478 
Amortization expense related to intangible assets was, in thousands, $2,415 and $4,854 during the quarter and year-to-date period ended December 31, 2021, and was, in thousands, $1,049 and $1,702 during the quarter and year-to-date period ended December 31, 2020. Amortization expense in future periods is expected to be, in thousands, $4,755 for the remainder of fiscal year 2022, and $8,878, $8,272, $8,038, and $7,687 in the four years ending June 30, 2026, and $23,974 thereafter. The estimated useful life of capitalized software ranges from 2 years to 13 years. The estimated useful life of acquired technology is 7 years. The amortization period for customer relationship intangible assets ranges from 10 years to 20 years. The estimated useful life of trade names is 10 years. The estimated useful life of non-compete agreements is 5 years. The estimated useful life of patents is 14 years and the estimated useful life of trademarks is 15 years.
Capitalized software is stated at cost less accumulated amortization and is amortized using the straight-line method. During the software application development stage, capitalized costs include external consulting costs, cost of software licenses, and internal payroll and payroll-related costs for employees who are directly associated with a software project. Upgrades and enhancements are capitalized if they result in added functionality which enable the software to perform tasks it was previously incapable of performing. Software maintenance, training, data conversion, and business process re-engineering costs are expensed in the period in which they are incurred. 
Trade names, non-compete agreements, acquired technology, patents and trademarks are amortized on a straight-line basis over their estimated useful lives. Customer relationships are amortized based on estimated attrition rates of customers. We have no intangible assets with indefinite useful lives which are not subject to amortization.
Non-operating Income (Expense), net:
Non-operating income and expense include the impact of such items as fair value adjustments on Supplemental Employee Retirement Plan (“SERP”) investments, amortization of actuarial income, foreign currency rate movements, bank charges, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain or loss on SERP investments is offset by a change in the SERP liability that is recognized in selling and administrative expenses.
Components of the Non-operating income (expense), net line, were:
 Three Months EndedSix Months Ended
 December 31December 31
(Amounts in Thousands)2021202020212020
Gain on Supplemental Employee Retirement Plan Investments$680 $1,381 $587 $2,139 
Other29 (1)(64)(16)
 Non-operating income, net$709 $1,380 $523 $2,123