Goodwill, Intangibles and Other Long-lived Assets

3 Months Ended

Sep. 28, 2014

Goodwill, Intangibles and Other Long-lived Assets

Goodwill, Intangibles and Other Long-lived Assets

NOTE 7 — Goodwill, Intangibles and Other Long-lived Assets

The following table summarizes the activity in the Company’s goodwill account during the three month periods ended as follows (in thousands):

	Amount
Balance, June 30, 2014	$	16,357
Purchase accounting adjustment	(668		)
Balance, September 28, 2014	$	15,689

The following table summarizes the Company’s intangible assets as follows (in thousands):

	As of September 28, 2014							As of June 30, 2014
Intangible assets:	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Patents and tradenames	$	3,773	$	(349	)	$	3,424	$	3,773	$	(290	)	$	3,483
Customer relationships	24,077		(1,807		)	22,270		24,077		(1,205		)	22,872
Non-compete agreements and other	4,652		(389		)	4,263		4,652		(182		)	4,470
Total	$	32,502	$	(2,545	)	$	29,957	$	32,502	$	(1,677	)	$	30,825

Intangible assets are being amortized using the straight-line method over estimated useful lives ranging from five to fifteen years. Amortization expense totaled $868 thousand and $126 thousand for identifiable intangible assets for the three months ended September 28, 2014 and September 29, 2013, respectively. Estimated future amortization expense for the next five years as of September 28, 2014, is as follows (in thousands):

Fiscal Years	Amount
2015 (1)	$	2,603
2016	3,471
2017	3,471
2018	3,470
2019	3,285
Thereafter	13,657
Total	$	29,957

(1) Represents estimated amortization for the nine month period ended June 30, 2015.

- 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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