XML 31 R16.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Goodwill and Other Identifiable Intangible Assets | 12 Months Ended
--- | ---
Jun. 30, 2022
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, Specialty Technology Solutions and Modern Communications & Cloud. 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. During fiscal years ended June 30, 2022 and 2021, no impairment charges related to goodwill were recorded. For the fiscal year ended June 30, 2020, the Company's projected growth and operating margins were impacted by the worldwide economic hardships created by COVID-19 and as such recognized a goodwill impairment charge of $119.0 million, which is recorded to the impairment charges line item in the Consolidated Income Statements. Changes in the carrying amount of goodwill for the years ended June 30, 2022 and 2021, by reportable segment, are set forth in the table below.
| Specialty Technology Solutions |  | Modern Communications & Cloud |  | Total
| (in thousands)
Balance at June 30, 2020 | $ | 16,370 |  |  | $ | 197,918 |  |  | $ | 214,288 |
Unrealized gain on foreign currency translation | — |  |  | 4,589 |  |  | 4,589 |
Balance at June 30, 2021 | $ | 16,370 |  |  | $ | 202,507 |  |  | $ | 218,877 |
Unrealized loss on foreign currency translation | — |  |  | (4,442) |  |  | (4,442) |
Balance at June 30, 2022 | $ | 16,370 |  |  | $ | 198,065 |  |  | $ | 214,435 |
The following table shows the Company’s identifiable intangible assets as of June 30, 2022 and 2021, respectively.
| June 30, 2022 |  | June 30, 2021
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value
| (in thousands)
Amortized intangible assets: |  |  |  |  |  |  |  |  |  |  |
Customer relationships | $ | 137,366 |  |  | $ | 79,147 |  |  | $ | 58,219 |  |  | $ | 139,262 |  |  | $ | 68,716 |  |  | $ | 70,546 |
Trade names | 19,480 |  |  | 12,469 |  |  | 7,011 |  |  | 19,750 |  |  | 10,102 |  |  | 9,648 |
Non-compete agreements | 2,410 |  |  | 2,396 |  |  | 14 |  |  | 2,410 |  |  | 2,271 |  |  | 139 |
Supplier partner program | 4,085 |  |  | 2,051 |  |  | 2,034 |  |  | 4,085 |  |  | 1,621 |  |  | 2,464 |
Encryption key library | 19,900 |  |  | 12,230 |  |  | 7,670 |  |  | 19,900 |  |  | 9,743 |  |  | 10,157 |
Developed technology | 13,865 |  |  | 4,386 |  |  | 9,479 |  |  | 15,165 |  |  | 3,259 |  |  | 11,906 |
Total intangibles | $ | 197,106 |  |  | $ | 112,679 |  |  | $ | 84,427 |  |  | $ | 200,572 |  |  | $ | 95,712 |  |  | $ | 104,860 |
During fiscal year 2020, the Company recorded $1.4 million in impairment charges in customer relationships, trade names and non-compete agreements related to the acquisition of Canpango. This charge is included in the impairment charges line item in the Consolidated Income Statements. No impairment charges were recognized in fiscal years ended June 30, 2022 and 2021. The weighted-average amortization period for all intangible assets was approximately 10 years for the fiscal years ended June 30, 2022, 2021 and 2020. Amortization expense for continuing operations for the years ended June 30, 2022, 2021 and 2020 was $17.9 million, $19.5 million and $20.0 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, |
2023 | $ | 16,746 |
2024 | 16,642 |
2025 | 16,642 |
2026 | 12,775 |
2027 | 6,602 |
Thereafter | 15,020 |
Total | $ | 84,427 |

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 goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration