Goodwill and Other Intangible Assets

6 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Fiscal 2020 Impairment Charge

In the December quarter of fiscal 2020, the Company experienced deteriorating market conditions, primarily in general engineering and transportation applications in India and China, in addition to overall global weakness in the manufacturing sector. In view of these declining conditions and the significant detrimental effect on cash flows and actual and projected revenue and earnings compared with the prior annual impairment test, we determined that an impairment triggering event had occurred and performed an interim quantitative impairment test of our goodwill, indefinite-lived trademark intangible asset and other long-lived assets of our former Widia reporting unit. We evaluated the recoverability of goodwill for the reporting unit by comparing its carrying value with the fair values determined using a combination of a discounted cash flow analysis and market multiples based upon historical and projected financial information. As a result of this test, we recorded a non-cash pre-tax impairment charge during the three months ended December 31, 2019 of $14.6 million in the former Widia segment, which is now part of the Metal Cutting segment as of July 1, 2020, of which $13.1 million was for goodwill and $1.5 million was for an indefinite-lived trademark intangible asset. These impairment charges are recorded in restructuring and asset impairment charges in our condensed consolidated statements of income.

Divestiture Impact on Other Intangible Assets

During the three months ended December 31, 2019, we completed the sale of certain assets of the non-core specialty alloys and metals business within the Infrastructure segment, see Note 3. As a result of this transaction, other intangibles decreased by $12.5 million in our Infrastructure segment. This decrease was recorded in the loss on divestiture account in our condensed consolidated statements of income.

A summary of the carrying amount of goodwill attributable to each segment, as well as the changes in such carrying amounts, is as follows:


(in thousands)	Metal Cutting		Infrastructure		Total
Gross goodwill	$	448,241	$	633,211	$	1,081,452
Accumulated impairment losses	(177,661)		(633,211)		(810,872)
Balance as of June 30, 2020	$	270,580	$	—	$	270,580

Activity for the six months ended December 31, 2020:
Change in gross goodwill due to translation	10,867		—		10,867



Gross goodwill	459,108		633,211		1,092,319
Accumulated impairment losses	(177,661)		(633,211)		(810,872)
Balance as of December 31, 2020	$	281,447	$	—	$	281,447

The components of our other intangible assets were as follows:


	Estimated Useful Life (in years)	December 31, 2020				June 30, 2020
(in thousands)		Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization

Technology-based and other	4 to 20	$	33,881	$	(24,235)		$	32,713	$	(22,612)
Customer-related	10 to 21	183,624		(94,174)			181,408		(88,112)
Unpatented technology	10 to 30	31,906		(19,305)			31,586		(17,890)
Trademarks	5 to 20	13,332		(9,583)			13,087		(8,772)
Trademarks	Indefinite	12,215		—			11,160		—
Total		$	274,958	$	(147,297)		$	269,954	$	(137,386)