Goodwill and long-lived assets

12 Months Ended

Jul. 01, 2017

7. Goodwill and intangible assets

The following table presents the change in goodwill balances by reportable segment for fiscal year 2017. All of the accumulated impairment was recognized in fiscal 2009.


	Electronic		Premier
	Components		Farnell		Total
	(Thousands)
Gross goodwill	$	1,666,962	$	—	$	1,666,962
Accumulated impairment		(1,045,110)		—		(1,045,110)
Carrying value at July 2, 2016		621,852		—		621,852
Acquisitions		12,818		475,862		488,680
Foreign currency translation		378		37,437		37,815
Carrying value at July 1, 2017	$	635,048	$	513,299	$	1,148,347
Gross goodwill	$	1,680,158	$	513,299	$	2,193,457
Accumulated impairment		(1,045,110)		—		(1,045,110)
Carrying value at July 1, 2017	$	635,048	$	513,299	$	1,148,347

Based upon the Company’s annual impairment tests performed in the fourth quarters of fiscal 2017, 2016 and 2015, there was no impairment of goodwill in the respective fiscal years. The goodwill impairment testing requirements and related assumptions used are described further in Note 1.

The following table presents the Company’s acquired identifiable intangible assets:


	July 1, 2017						July 2, 2016
	Acquired		Accumulated		Net Book		Acquired		Accumulated		Net Book
	Amount		Amortization		Value		Amount		Amortization		Value
	(Thousands)
Customer related	$	277,865	$	(79,578)	$	198,287	$	47,980	$	(34,515)	$	13,465
Trade name		46,915		(6,720)		40,195		3,746		(2,718)		1,028
Technology and other		50,369		(11,560)		38,809		12,356		(4,278)		8,078
	$	375,149	$	(97,858)	$	277,291	$	64,082	$	(41,511)	$	22,571

Intangible asset amortization expense was $54.0 million, $9.2 million and $15.8 million for fiscal 2017, 2016 and 2015, respectively. Intangible assets have a weighted average remaining useful life of approximately 4 years as of July 1, 2017. The following table presents the estimated future amortization expense for the next five fiscal years and thereafter (in thousands):


Fiscal Year
2018		77,884
2019		75,887
2020		74,164
2021		35,118
2022		10,834
Thereafter		3,404
Total	$	277,291

- 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.

+ References + Details