Goodwill and Other Identifiable Intangible Assets

12 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

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, 2024, 2023 and 2022, no impairment charges related to goodwill were recorded. The fair value of the Specialty Technology Solutions and Modern Communications & Cloud reporting units exceeded its carrying value by 11% and 33%, respectively, as of the annual goodwill impairment testing date.

Changes in the carrying amount of goodwill for the years ended June 30, 2024 and 2023, by reportable segment, are set forth in the table below.


	Specialty Technology Solutions		Modern Communications & Cloud		Total
	(in thousands)
Balance at June 30, 2022	$	16,370	$	198,065	$	214,435


Unrealized loss on foreign currency translation	—		2,271		2,271
Balance at June 30, 2023	$	16,370	$	200,336	$	216,706


Unrealized gain on foreign currency translation	—		(10,405)		(10,405)
Balance at June 30, 2024	$	16,370	$	189,931	$	206,301

The following table shows the Company’s identifiable intangible assets as of June 30, 2024 and 2023, respectively.


	June 30, 2024						June 30, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
	(in thousands)
Amortized intangible assets:
Customer relationships	$	107,875	$	79,235	$	28,640	$	138,574	$	90,650	$	47,924
Trade names	13,036		10,021		3,015		19,562		14,109		5,453
Non-compete agreements	—		—		—		2,410		2,410		—

Supplier partner program	4,085		2,911		1,174		4,085		2,481		1,604
Encryption key library	19,900		17,205		2,695		19,900		14,718		5,182
Developed technology	4,612		2,501		2,111		14,262		5,930		8,332
Total intangibles	$	149,508	$	111,873	$	37,635	$	198,793	$	130,298	$	68,495

The weighted-average amortization period for all intangible assets was approximately 10 years for the fiscal years ended June 30, 2024, 2023 and 2022. Amortization expense for continuing operations for the years ended June 30, 2024, 2023 and 2022 was $15.7 million, $16.7 million and $17.9 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. Certain fully amortized intangible assets have been removed during the current fiscal year.

Estimated future amortization expense is as follows:


	Amortization Expense
	(in thousands)
Year Ended June 30,
2025	$	14,915
2026	11,071
2027	4,902
2028	3,531
2029	3,002
Thereafter	214
Total	$	37,635