Goodwill and Intangible Assets

12 Months Ended

Apr. 28, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Note 6. Goodwill and Intangible Assets

We account for goodwill and intangible assets in accordance with ASC 350, Goodwill and Other Intangible Assets.

Goodwill

The changes in the carrying amount of goodwill related to each reportable segment for the fiscal year ended April 28, 2018 were as follows:



	Live Events		Commercial		Transportation		International		Total
Balance as of April 29, 2017:	$	2,274	$	3,199	$	45	$	2,294	$	7,812
Foreign currency translation	21		145		22		264		452
Balance as of April 28, 2018:	$	2,295	$	3,344	$	67	$	2,558	$	8,264

We perform an analysis of goodwill on an annual basis, and it is tested for impairment more frequently if events or changes in circumstances indicate that an asset might be impaired. We perform our annual analysis during our third quarter of each fiscal year, based on the goodwill amount as of the first business day of our third fiscal quarter. The result of the analysis indicated no goodwill impairment existed for fiscal years 2018, 2017, and 2016.

In conducting our impairment testing, we compare the fair value of each of our business units to the related carrying value of the allocated assets. We utilize the income approach based on discounted projected cash flows to estimate the fair value of each unit. The projected cash flows use many estimates including market conditions, expected market demand and our ability to grow or maintain market share, gross profit, and expected expenditures for capital and operating expenses. Assets shared or not directly attributed to a reportable segment's activities are allocated to the reportable segment based on sales and other measures.

Intangible Assets

The following table summarizes intangible assets, net, as of April 28, 2018 and April 29, 2017:



	April 28, 2018
	Weighted Average Life (in years)	Gross Carrying Amount		Accumulated Amortization		Impairment		Net Carrying Amount
Registered trademarks	20.0	$	709	$	118	$	—	$	591
Software	3.0	2,978		2,109		—		869
Customer relationships	10.0	2,859		637		—		2,222
Other	1.0	100		100		—		—
Total amortized intangible assets	7.8	$	6,646	$	2,964	$	—	$	3,682

	April 29, 2017
	Weighted Average Life (in years)	Gross Carrying Amount		Accumulated Amortization		Impairment		Net Carrying Amount
Registered trademarks	20.0	$	1,604	$	429	$	604	$	571
Software	3.0	2,814		1,055		—		1,759
Customer relationships	9.7	3,209		608		226		2,375
Other	1.0	95		95		—		—
Total amortized intangible assets	9.3	$	7,722	$	2,187	$	830	$	4,705

During fiscal 2017, we chose to transition out of the non-digital market in our International business unit. We identified certain technology and customer lists with carrying values deemed to not be recoverable. Based on this evaluation, we recognized an impairment loss of $830 for non-digital related technology and customer list intangible assets. This was included in cost of sales and selling expense in the consolidated statement of operations. The impairment loss was calculated based on expected future cash flows using level 3 inputs. The level 3 inputs included weighted average estimated future cash flows from non-digital product sales and estimated selling value of non-digital intellectual property. See "Note 5. Sale of Non-Digital Division Assets" for more information.

In the fiscal years 2018, 2017, and 2016, amortization expense including impairment related to intangible assets was $1,330, $2,546, and $295, respectively. Amortization expenses are included primarily in product design and development and selling expense in the consolidated statement of operations.

As of April 28, 2018, amortization expenses for future periods were estimated to be as follows:



Fiscal years ending	Amount
2019	$	1,200
2020	331
2021	328
2022	303
2023	303
Thereafter	1,217
Total expected amortization expense	$	3,682

- 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.

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