XML 84 R13.htm IDEA: XBRL DOCUMENT
v3.2.0.727

Goodwill and Other Identifiable Intangible Assets | 12 Months Ended
--- | ---
Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets In accordance with ASC 350, Intangibles - Goodwill and Other Intangible Assets, the Company performs its annual goodwill impairment test during the fourth quarter of each fiscal year, or whenever indicators of impairment are present. This testing includes the determination of each reporting unit's fair value using a discounted cash flows model compared to each reporting unit's carrying value. Historically, the reporting units utilized for goodwill impairment tests were primarily based on geography, one level below the Barcode & Security and Communications & Services operating segments. During fiscal year 2015, the Company reorganized its reporting units to align directly with its operating segments. During fiscal years 2015 and 2014, no impairment charges related to goodwill were recorded. In accordance with ASC 350, the Company performed its annual goodwill impairment test on both the historical reporting units based on geography and the new reporting units based on operating segments for fiscal year 2015. Under the historical reporting units, the estimated fair value of the Company's Latin American goodwill reporting unit exceeded its carrying values by a smaller margin than the Company's other goodwill reporting units, excluding reporting units acquired during fiscal year 2015. The estimated fair value of the Latin America goodwill reporting unit exceeded the carrying value by 26.5% and 10.2% for fiscal years 2015 and 2014, respectively. The increase in sensitivity to this goodwill reporting unit is driven largely by the general macroeconomic environment and lower expectations for future results in the unit. Key assumptions used in determining fair value include projected growth and operating margin, working capital requirements and discount rates. During fiscal year 2013, the Company completed its annual impairment test as of June 30, 2013 and determined that a goodwill impairment charge was necessary for its Brazilian POS & Barcode and European Communications reporting units. Prior to the test, no interim impairment indicators were identified. The Company's impairment testing included the determination of the reporting unit's fair value using market multiples and discounted cash flows modeling based on forecasts which were discounted using a weighted-average cost of capital (a level 3 input). The impairment charges were a result of reduced earnings and cash flow forecast primarily due to the general macroeconomic environment and lower expectations of future results. During the fourth quarter of fiscal 2013, the Company recorded a non-cash charge for goodwill impairment of $5.4 million and $15.1 million in Europe Communications and Brazil POS & Barcode, respectively, which are included on the Consolidated Income Statements. Changes in the carrying amount of goodwill for the years ended June 30, 2015 and 2014, by reportable segment, are as follows:
| Barcode & Security Segment |  | Communications & Services Segment |  | Total
| (in thousands)
Balance as of June 30, 2013 | $ | 16,329 |  |  | $ | 15,466 |  |  | $ | 31,795 |
Unrealized gain (loss) on foreign currency translation | 547 |  |  | — |  |  | 547 |
Balance as of June 30, 2014 | $ | 16,876 |  |  | $ | 15,466 |  |  | $ | 32,342 |
Additions | — |  |  | 40,802 |  |  | 40,802 |
Unrealized gain (loss) on foreign currency translation | (1,341 | ) |  | (5,294 | ) |  | (6,635 | )
Balance as of June 30, 2015 | $ | 15,535 |  |  | $ | 50,974 |  |  | $ | 66,509 |
The following table shows the Company’s identifiable intangible assets as of June 30, 2015 and 2014, respectively.
| June 30, 2015 |  | June 30, 2014
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value
| (in thousands)
Amortized intangible assets: |  |  |  |  |  |  |  |  |  |  |
Customer relationships | $ | 59,448 |  |  | $ | 20,573 |  |  | $ | 38,875 |  |  | $ | 33,417 |  |  | $ | 17,981 |  |  | $ | 15,436 |
Trade names | 7,857 |  |  | 1,278 |  |  | 6,579 |  |  | — |  |  | — |  |  | — |
Non-compete agreements | 1,113 |  |  | 539 |  |  | 574 |  |  | 636 |  |  | 408 |  |  | 228 |
Distributor agreements | 345 |  |  | 101 |  |  | 244 |  |  | 424 |  |  | 93 |  |  | 331 |
Total intangibles | $ | 68,763 |  |  | $ | 22,491 |  |  | $ | 46,272 |  |  | $ | 34,477 |  |  | $ | 18,482 |  |  | $ | 15,995 |
During fiscal year 2015, the Company acquired new customer relationships, trade names and non-compete agreements related to the acquisitions of Imago ScanSource and Network1. During the fourth quarter of fiscal 2014, the Company impaired certain customer relationships related to our German communications entity and wrote off the gross carrying amount and corresponding accumulated amortization. The weighted-average amortization period for all intangible assets was approximately 10 years, 11 years, 10 years for the year ended June 30, 2015, 2014 and 2013, respectively. Amortization expense for the years ended June 30, 2015, 2014 and 2013 was $6.6 million, $3.9 million and $4.9 million, respectively. Estimated future amortization expense is as follows:
| Amortization Expense
| (in thousands)
Year Ended June 30, |
2016 | $ | 8,385 |
2017 | 7,982 |
2018 | 5,702 |
2019 | 4,711 |
2020 | 4,255 |
Thereafter | 15,237 |
Total | $ | 46,272 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration