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Note 6 - Goodwill | 12 Months Ended
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Jun. 30, 2020
Notes to Financial Statements |
Goodwill Disclosure [Text Block] | 6. Goodwill Goodwill and certain indefinite-lived intangible assets are not amortized, but instead are tested for impairment at least annually and more frequently whenever events or changes in circumstances indicate that the fair value of the asset may be less than its carrying amount. The Company’s annual test for impairment is performed using a May 31st measurement date. The Company has identified its reporting units for impairment testing as its seven operating segments, which are aggregated into five reporting segments as disclosed in Note 17 – Industry Segment Information. As quoted market prices are not available for the Company’s reporting units, the fair value of the reporting units is determined using a discounted cash flow model (income approach). This method uses various assumptions that are specific to each individual reporting unit in order to determine the fair value. In addition, the Company compares the estimated aggregate fair value of its reporting units to its overall market capitalization. While the Company believes that estimates of future cash flows are reasonable, changes in assumptions could significantly affect valuations and result in impairments in the future. The most significant assumption involved in the Company’s determination of fair value is the cash flow projections of each reporting unit. If the estimates of future cash flows for each reporting unit may be insufficient to support the carrying value of the reporting units, the Company will reassess its conclusions related to fair value and the recoverability of goodwill. In connection with the planned divestiture of the Refrigerated Solutions Group, the Company compared the fair value of each reporting unit, Master-Bilt and NorLake, to its carrying value as of March 31, 2020. This resulted in an asset impairment charge in the third quarter of fiscal year 2020 of $7.7 million in discontinued operations, which represented the full amount of goodwill associated with both reporting units. In addition, due to the impact that the COVID-19 pandemic had on projected operating results, cash flow, and market capitalization, the Company completed an interim goodwill impairment assessment for its remaining reporting units in the third quarter of fiscal year 2020. As a result of the assessment in the third quarter, the Company determined that the fair value of its reporting units, with the exception of RSG, substantially exceeded their respective carrying values. Therefore, no additional impairment charges were recorded in connection with the third quarter 2020 assessment. The Company completed its annual impairment testing as of May 31, 2020, and determined that the fair value of each of its reporting units substantially exceeded each unit’s respective carrying value, therefore, no impairment charges were recorded in connection with the testing and assessment during the fourth quarter of 2020. The Company completed its annual impairment testing as of May 31, 2019, and determined that the fair value of each reporting unit substantially exceeded each unit’s respective carrying value, therefore, no impairment charges were recorded in connection with the testing and assessment during 2019. Changes to goodwill associated with continuing operations during the years ended June 30, 2020 and 2019 are as follows (in thousands):
|  | 2020 |  |  | 2019 |
Balance at beginning of year |  | $ | 273,843 |  |  | $ | 204,091 |
Acquisitions |  |  | (1,699 | ) |  |  | 68,392 |
Foreign currency translation |  |  | (923 | ) |  |  | 1,360 |
Balance at end of year |  | $ | 271,221 |  |  | $ | 273,843 |

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- Definition The entire disclosure for goodwill. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2144439 + Details
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