Goodwill and Intangible Assets

6 Months Ended

Dec. 27, 2015

NOTE 5 – Goodwill and Intangible Assets

Goodwill

The Company performs a goodwill impairment analysis at least annually (in the fourth quarter of each year), unless indicators of impairment exist in interim periods. The Company performed a quantitative and qualitative assessment to determine if it was more likely than not that the fair value of each of our reporting units with goodwill exceeded its carrying value. In making this assessment, the Company evaluated overall business and overall economic conditions since the date of its acquisitions, as well as expectations of projected revenues and cash flows, assumptions impacting the weighted average cost of capital, and overall industry and market conditions.

The Company concluded that the fair value of each reporting unit was in excess of its carrying value and goodwill was not impaired as of December 27, 2015.

Intangible Assets

The following table summarizes the Company's intangible assets (in thousands):


	As of December 27, 2015						As of June 30, 2015
	Gross						Gross
	Carrying		Accumulated		Net Carrying		Carrying		Accumulated		Net Carrying
Intangible assets:	Amount		Amortization		Amount		Amount		Amortization		Amount
Patents and tradenames	$	3,773	$	(646)	$	3,127	$	3,773	$	(527)	$	3,246
Customer relationships		24,077		(4,817)		19,260		24,077		(3,613)		20,464
Non-compete agreements and other		3,642		(1,275)		2,367		3,642		(911)		2,731
Total	$	31,492	$	(6,738)	$	24,754	$	31,492	$	(5,051)	$	26,441

Intangible assets are being amortized using the straight-line method over estimated useful lives ranging from five to fifteen years. Amortization expense totaled $0.8 million and $0.9 million for identifiable intangible assets for the three months ended December 27, 2015 and December 28, 2014, respectively, and $1.7 million for the six months ended December 27, 2015 and December 28, 2014. Patents and tradenames, customer relationships, and non-compete agreements and other are amortized over their weighted average useful lives of approximately 13.5 years, 10.8 years, and 5.0 years, respectively. Estimated future amortization expense for the next five years as of December 27, 2015, is as follows (in thousands):


Fiscal Years	Amount
Remainder of 2016	$	1,688
2017		3,375
2018		3,375
2019		3,191
2020		2,643
Thereafter		10,482
Total	$	24,754

There were no impairments of long-lived assets during the three and six months ended December 27, 2015 and December 28, 2014.