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Goodwill and Other Identifiable Intangible Assets | 12 Months Ended
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Jun. 30, 2020
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. The reporting units utilized for goodwill impairment tests align directly with our operating segments, Worldwide Barcode, Networking & Security and Worldwide Communications & Services. The 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. Key assumptions used in determining fair value include projected growth and operating margin, working capital requirements and discount rates. The Company's projected growth and operating margins have been impacted by the worldwide economic hardships created by COVID-19 and as such recognized a goodwill impairment charge of $119.0 million for our Worldwide, Barcode, Networking and Security reporting unit for the fiscal year ended June 30, 2020 which is recorded to the impairment charges line item in the Consolidated Income Statements. The fair value of our Worldwide Communications & Services reporting unit exceeds its carrying value of assets by approximately 12%. During fiscal years ended June 30, 2019 and 2018, no impairment charges related to goodwill were recorded. Changes in the carrying amount of goodwill for the years ended June 30, 2020 and 2019, by reportable segment, are set forth in the table below. Additions to goodwill for fiscal years 2020 and 2019 are due to the recent acquisitions.
| Worldwide Barcode, Networking & Security Segment |  | Worldwide Communications & Services Segment |  | Total
| (in thousands) |  |  |  |
Balance at June 30, 2018 | $ | 135,954 |  |  | $ | 152,769 |  |  | $ | 288,723 |
Additions | — |  |  | 21,854 |  |  | 21,854 |
Unrealized loss on foreign currency translation | 11 |  |  | 127 |  |  | 138 |
Balance at June 30, 2019 | $ | 135,965 |  |  | $ | 174,750 |  |  | $ | 310,715 |
Additions | — |  |  | 30,445 |  |  | 30,445 |
Goodwill impairment charges | (119,037) |  |  | — |  |  | (119,037) |
Unrealized loss on foreign currency translation | (558) |  |  | (7,277) |  |  | (7,835) |
Balance at June 30, 2020 | $ | 16,370 |  |  | $ | 197,918 |  |  | $ | 214,288 |
The following table shows the Company’s identifiable intangible assets as of June 30, 2020 and 2019, respectively.
| June 30, 2020 |  |  |  |  |  | June 30, 2019 |  |  |  |
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value
| (in thousands) |  |  |  |  |  |  |  |  |  |
Amortized intangible assets: |  |  |  |  |  |  |  |  |  |  |
Customer relationships | $ | 137,146 |  |  | $ | 56,107 |  |  | $ | 81,039 |  |  | $ | 131,263 |  |  | $ | 45,707 |  |  | $ | 85,556 |
Trade names | 19,509 |  |  | 7,617 |  |  | 11,892 |  |  | 21,546 |  |  | 9,451 |  |  | 12,095 |
Non-compete agreements | 2,410 |  |  | 1,711 |  |  | 699 |  |  | 2,586 |  |  | 1,209 |  |  | 1,377 |
Supplier partner program | 4,085 |  |  | 1,191 |  |  | 2,894 |  |  | 3,583 |  |  | 815 |  |  | 2,768 |
Encryption key library | 19,900 |  |  | 7,255 |  |  | 12,645 |  |  | 19,900 |  |  | 4,768 |  |  | 15,132 |
Developed technology | 14,004 |  |  | 1,626 |  |  | 12,378 |  |  | 4,512 |  |  | 226 |  |  | 4,286 |
Total intangibles | $ | 197,054 |  |  | $ | 75,507 |  |  | $ | 121,547 |  |  | $ | 183,390 |  |  | $ | 62,176 |  |  | $ | 121,214 |
During fiscal year 2020, the Company acquired customer relationships, trade names and developed technology related to the acquisition of intY. During fiscal year 2019, the Company acquired customer relationships, trade names and developed technology related to the acquisition of RPM. In addition, during fiscal year 2019, the Company acquired customer relationships, trade names and non-compete agreements related to the acquisition of Canpango, which were subsequently impaired in fiscal year 2020, totaling $1.4 million in impairment charges. This charge is included in the impairment charges line item in the Consolidated Income Statements. The Company also disposed of fully amortized trade names and non-compete agreements from prior acquisitions. No impairment charges were recognized in fiscal years ended June 30, 2019 and 2018. The weighted-average amortization period for all intangible assets was approximately 10 years for the year ended June 30, 2020, compared to 9 years for the year ended June 30, 2019 and 10 years for the year ended June 30, 2018. Amortization expense for continuing operations for the years ended June 30, 2020, 2019 and 2018 was $20.0 million, $17.9 million and $18.7 million, respectively, all of which relates to selling, general and administrative costs, not the cost of selling goods, and has been presented as such in the accompanying Consolidated Income Statements. Estimated future amortization expense is as follows:
| Amortization Expense
| (in thousands)
Year Ended June 30, |
2021 | $ | 19,313 |
2022 | 17,677 |
2023 | 16,737 |
2024 | 16,633 |
2025 | 16,633 |
Thereafter | 34,554 |
Total | $ | 121,547 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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