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Goodwill and Other Intangible Assets | 9 Months Ended
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Mar. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets |
Note 9. | Goodwill and Other Intangible Assets
Effective July 1, 2018, the Company realigned the composition of its operating segments. The Company moved Laser Systems Group from II-VI Laser Solutions to II-VI Photonics and moved IPI from II-VI Photonics to II-VI Performance Products. All applicable information has been restated to reflect this change. The Company used the relative fair value method to reallocate goodwill to the associated reporting units in connection with the realignment. Changes in the carrying amount of goodwill were as follows ($000):
|  | Nine Months Ended March 31, 2019 |
|  | II-VI Laser |  |  | II-VI |  |  | II-VI Performance |  |  |  |  |
|  | Solutions |  |  | Photonics |  |  | Products |  |  | Total |
Balance-beginning of period |  | $ | 98,737 |  |  | $ | 109,670 |  |  | $ | 62,271 |  |  | $ | 270,678 |
Goodwill acquired |  |  | - |  |  |  | 26,015 |  |  |  | 23,349 |  |  |  | 49,364 |
Foreign currency translation |  |  | (85 | ) |  |  | (22 | ) |  |  | - |  |  |  | (107 | )
Balance-end of period |  | $ | 98,652 |  |  | $ | 135,663 |  |  | $ | 85,620 |  |  | $ | 319,935 |
The gross carrying amount and accumulated amortization of the Company’s intangible assets other than goodwill as of March 31, 2019 and June 30, 2018 were as follows ($000):
|  | March 31, 2019 |  |  | June 30, 2018 |
|  | Gross |  |  |  |  |  |  | Net |  |  | Gross |  |  |  |  |  |  | Net |
|  | Carrying |  |  | Accumulated |  |  | Book |  |  | Carrying |  |  | Accumulated |  |  | Book |
|  | Amount |  |  | Amortization |  |  | Value |  |  | Amount |  |  | Amortization |  |  | Value |
Technology and Patents |  | $ | 91,832 |  |  | $ | (37,688 | ) |  | $ | 54,144 |  |  | $ | 66,812 |  |  | $ | (32,979 | ) |  | $ | 33,833 |
Trademarks |  |  | 15,825 |  |  |  | (1,569 | ) |  |  | 14,256 |  |  |  | 15,882 |  |  |  | (1,471 | ) |  |  | 14,411 |
Customer Lists |  |  | 134,189 |  |  |  | (57,797 | ) |  |  | 76,392 |  |  |  | 127,603 |  |  |  | (50,792 | ) |  |  | 76,811 |
Other |  |  | 1,570 |  |  |  | (1,570 | ) |  |  | - |  |  |  | 1,573 |  |  |  | (1,559 | ) |  |  | 14 |
Total |  | $ | 243,416 |  |  | $ | (98,624 | ) |  | $ | 144,792 |  |  | $ | 211,870 |  |  | $ | (86,801 | ) |  | $ | 125,069 |
As a result of the July 1, 2018 segment realignment, the Company reviewed the recoverability of the carrying value of goodwill at its reporting units. The Company performed a quantitative test to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill and other intangible assets. The Company did not record any impairment of goodwill or long-lived assets, as the quantitative assessment did not indicate deterioration in the fair value of its reporting units. In conjunction with the acquisition of CoAdna, the Company recorded $9.8 million attributed to the value of technology and patents and $6.3 million of customer lists. The intangibles were recorded based on the Company’s preliminary purchase price allocation utilizing either a discounted cash flow or relief from royalty method to derive the fair value. The valuation is expected to be finalized within one year from the date of acquisition. In conjunction with the acquisition of the product line, the Company recorded $6.3 million of acquired technology. The acquired technology was recorded based on the Company’s preliminary purchase price allocation utilizing a relief from royalty method to derive the fair value. The valuation is expected to be finalized within one year of the date of acquisition. In conjunction with the acquisition of Redstone, the Company recorded $9.1 million of acquired technology. The acquired technology was recorded based on the Company’s preliminary purchase price allocation utilizing a relief from royalty method to derive the fair value. The valuation is expected to be finalized within one year of the date of acquisition. Technology and patents are being amortized over a range of 60 to 240 months, with a weighted average remaining life of approximately 86 months. Customer lists are being amortized over a range of approximately 120 to 240 months, with a weighted average remaining life of approximately 131 months. The gross carrying amount of trademarks includes $14.0 million of acquired trade names with indefinite lives that are not amortized but tested annually for impairment or more frequently if a triggering event occurs. Included in the gross carrying amount and accumulated amortization of the Company’s intangible assets is the effect of foreign currency translation on that portion of the intangible assets relating to the Company’s foreign subsidiaries. At March 31, 2019, the estimated amortization expense for the existing intangible assets for each of the five succeeding fiscal years is as follows ($000):
Fiscal Year Ending June 30, |  | Amount |
Remaining 2019 |  | $ | 4,500 |
2020 |  |  | 17,900 |
2021 |  |  | 16,600 |
2022 |  |  | 14,900 |
2023 |  |  | 14,500 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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