Goodwill and Other Identifiable Intangible Assets

12 Months Ended

Jun. 30, 2025

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 Intelisys & Advisory. 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, 2025, 2024 and 2023, no impairment charges related to goodwill were recorded. The fair value of the Specialty Technology Solutions and Intelisys & Advisory reporting units exceeded its carrying value by 2% and 100%, respectively, as of the annual goodwill impairment testing date.

Changes in the carrying amount of goodwill for the years ended June 30, 2025 and 2024, by reportable segment, are set forth in the table below.


	Specialty Technology Solutions		Intelisys & Advisory		Total
	(in thousands)
Balance at June 30, 2023	$	156,486	$	60,220	$	216,706

Disposals	(8,585)		—		(8,585)
Unrealized loss on foreign currency translation	(1,793)		(27)		(1,820)
Balance at June 30, 2024	$	146,108	$	60,193	$	206,301
Additions	13,447		10,693		24,140

Unrealized gain on foreign currency translation	224		155		379
Balance at June 30, 2025	$	159,779	$	71,041	$	230,820

The following table shows the Company’s identifiable intangible assets as of June 30, 2025 and 2024, respectively.


	June 30, 2025						June 30, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
	(in thousands)
Amortized intangible assets:
Customer relationships	$	145,528	$	92,943	$	52,585	$	107,875	$	79,235	$	28,640
Trade names	14,036		11,442		2,594		13,036		10,021		3,015


Supplier partner program	4,085		3,341		744		4,085		2,911		1,174
Encryption key library	19,900		19,694		206		19,900		17,205		2,695
Developed technology	10,512		3,732		6,780		4,612		2,501		2,111
Total intangibles	$	194,061	$	131,152	$	62,909	$	149,508	$	111,873	$	37,635

The weighted-average amortization period for all intangible assets was approximately 9 years for the fiscal year ended June 30, 2025 and approximately 10 years for the fiscal years ended 2024 and 2023. Amortization expense for continuing operations for the years ended June 30, 2025, 2024 and 2023 was $19.2 million, $15.7 million and $16.7 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. 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,
2026	$	15,718
2027	9,379
2028	8,022
2029	7,493
2030	4,704
Thereafter	17,593
Total	$	62,909