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Goodwill and Intangibles | 9 Months Ended
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Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLES | GOODWILL AND INTANGIBLES The changes in the carrying amount of goodwill for both the Service Center Based Distribution segment and the Fluid Power & Flow Control segment for the fiscal year ended June 30, 2017 and the nine month period ended March 31, 2018 are as follows:
| Service Centers |  | Fluid Power & Flow Control |  | Total
Balance at July 1, 2016 | $ | 198,486 |  |  | $ | 4,214 |  |  | $ | 202,700 |
Goodwill acquired during the period | 3,220 |  |  | 625 |  |  | 3,845 |
Other, primarily currency translation | 34 |  |  | (444 | ) |  | (410 | )
Balance at June 30, 2017 | $ | 201,740 |  |  | $ | 4,395 |  |  | $ | 206,135 |
Goodwill acquired during the period | 2,525 |  |  | 420,953 |  |  | 423,478 |
Other, primarily currency translation | 170 |  |  | — |  |  | 170 |
Balance at March 31, 2018 | $ | 204,435 |  |  | $ | 425,348 |  |  | $ | 629,783 |
During the first quarter of fiscal 2017, the Company recorded an adjustment to the preliminary estimated fair value of intangible assets related to the HUB acquisition. The fair values of the customer relationships and trade names intangible assets were decreased by $2,636 and $584, respectively, with a corresponding total increase to goodwill of $3,220. The changes to the preliminary estimated fair values resulted in a decrease to amortization expense of $156 during the nine months ended March 31, 2017, which is recorded in selling, distribution and administrative expense on the condensed statements of consolidated income. The Company has six (6) reporting units for which an annual goodwill impairment assessment was performed as of January 1, 2018. The Company concluded that all of the reporting units’ fair value exceeded their carrying amounts by at least 30% as of January 1, 2018. The fair values of the reporting units in accordance with the goodwill impairment test were determined using the Income and Market approaches. The Income approach employs the discounted cash flow method reflecting projected cash flows expected to be generated by market participants and then adjusted for time value of money factors. The Market approach utilizes an analysis of comparable publicly traded companies. The techniques used in the Company's impairment tests have incorporated a number of assumptions that the Company believes to be reasonable and to reflect known market conditions at the measurement dates. Assumptions in estimating future cash flows are subject to a degree of judgment. The Company makes all efforts to forecast future cash flows as accurately as possible with the information available at the measurement date. The Company evaluates the appropriateness of its assumptions and overall forecasts by comparing projected results of upcoming years with actual results of preceding years. Key Level 3 based assumptions relate to pricing trends, inventory costs, customer demand, and revenue growth. A number of benchmarks from independent industry and other economic publications were also used. Changes in future results, assumptions, and estimates after the measurement date may lead to an outcome where impairment charges would be required in future periods. Specifically, actual results may vary from the Company’s forecasts and such variations may be material and unfavorable, thereby triggering the need for future impairment tests where the conclusions may differ in reflection of prevailing market conditions. At March 31, 2018 and June 30, 2017, accumulated goodwill impairment losses, subsequent to fiscal year 2002, totaled $64,794 related to the Service Center Based Distribution segment and $36,605 related to the Fluid Power & Flow Control segment. The Company’s identifiable intangible assets resulting from business combinations are amortized over their estimated period of benefit and consist of the following:
March 31, 2018 |  | Amount |  | Accumulated Amortization |  | Net Book Value
Finite-Lived Identifiable Intangibles: |  |  |  |  |  |
Customer relationships |  | $ | 467,938 |  |  | $ | 117,213 |  |  | $ | 350,725 |
Trade names |  | 114,563 |  |  | 22,372 |  |  | 92,191 |
Vendor relationships |  | 11,503 |  |  | 7,223 |  |  | 4,280 |
Non-competition agreements |  | 3,552 |  |  | 2,659 |  |  | 893 |
Total Identifiable Intangibles |  | $ | 597,556 |  |  | $ | 149,467 |  |  | $ | 448,089 |
June 30, 2017 |  | Amount |  | Accumulated Amortization |  | Net Book Value
Finite-Lived Identifiable Intangibles: |  |  |  |  |  |
Customer relationships |  | $ | 235,009 |  |  | $ | 102,414 |  |  | $ | 132,595 |
Trade names |  | 43,873 |  |  | 19,295 |  |  | 24,578 |
Vendor relationships |  | 14,152 |  |  | 9,141 |  |  | 5,011 |
Non-competition agreements |  | 3,788 |  |  | 2,410 |  |  | 1,378 |
Total Identifiable Intangibles |  | $ | 296,822 |  |  | $ | 133,260 |  |  | $ | 163,562 |
Amounts include the impact of foreign currency translation. Fully amortized amounts are written off. During the nine month period ended March 31, 2018, the Company acquired identifiable intangible assets with a preliminary acquisition cost allocation and weighted-average life as follows:
|  | Acquisition Cost Allocation |  | Weighted-Average Life
Customer relationships |  | $ | 234,370 |  |  | 20
Trade names |  | 71,050 |  |  | 10
Total Intangibles Acquired |  | $ | 305,420 |  |  | 17.7
Estimated future amortization expense by fiscal year (based on the Company’s identifiable intangible assets as of March 31, 2018) for the next five years is as follows: $11,900 for the remainder of 2018, $46,600 for 2019, $45,100 for 2020, $42,700 for 2021, $40,300 for 2022 and $37,800 for 2023.

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- 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 Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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