Goodwill and Intangible Assets

12 Months Ended

Apr. 29, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying amount of goodwill related to each reportable segment for the fiscal year ended April 29, 2023 were as follows:


	Live Events		Commercial		Transportation		International		Total
Balance as of April 30, 2022:	$	2,296	$	3,349	$	68	$	2,214	$	7,927
Foreign currency translation	(15)		(151)		(27)		81		(112)
Goodwill impairment	(2,281)		—		—		(2,295)		(4,576)
Balance as of April 29, 2023:	$	—	$	3,198	$	41	$	—	$	3,239

We perform an analysis of goodwill on an annual basis and test for impairment more frequently if events or changes in circumstances indicate that an asset might be impaired. Our annual analysis is performed during our third quarter of each fiscal year based on the goodwill amount as of the first business day of our third fiscal quarter.

We performed our annual impairment test on October 30, 2022 and concluded that the carrying value of the Live Events and International reporting units exceeded their respective fair values and consequently recorded an impairment charge as noted in the above table. We determined the fair value of the reporting units based on an income approach, using the present value of future discounted cash flows. Significant estimates used to determine fair value include the weighted average cost of capital and financial forecasts. The recognized impairment was primarily a result of our weighted average cost of capital being notably higher, which was driven by strains on our liquidity caused by disrupted supply chains and geopolitical conditions. As a result, the present value of our future cash flows was lower, which caused the $4,576 impairment charge. Based on our annual impairment test, we concluded that the fair value of the Commercial and Transportation reporting units exceeded their respective carrying values and concluded no goodwill impairment existed for those reporting units. The annual impairment test for fiscal years 2022 and 2021 concluded no goodwill impairment existed.

Intangible Assets

The following table summarizes intangible assets, net, as of April 29, 2023 and April 30, 2022:


	April 29, 2023
	Weighted Average Life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Registered trademarks	20.0	$	650	$	270	$	380

Customer relationships	10.3	2,563		1,807		756

Total	12.2	$	3,213	$	2,077	$	1,136


	April 30, 2022
	Weighted Average Life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Registered trademarks	20.0	$	639	$	233	$	406

Customer relationships	10.0	2,853		1,787		1,066

Total	11.8	$	3,492	$	2,020	$	1,472

In the fiscal years 2023, 2022, and 2021, amortization expense was $290, $504, and $1,502, respectively. Amortization expenses are included primarily in product design and development and selling expense in the consolidated statements of operations. Intangible assets are written off when fully amortized.

As of April 29, 2023, amortization expenses for future periods were estimated to be as follows:


Fiscal years ending	Amount
2024	$	285
2025	285
2026	254
2027	37
2028	37
Thereafter	238
Total expected amortization expense	$	1,136