XML 28 R13.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Note 6 - Goodwill and Other Intangible Assets | 12 Months Ended
--- | ---
Jun. 30, 2017
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 6 — GOODWILL AND OTHER INTANGIBLE ASSETS Carrying values of goodwill and other intangible assets with indefinite lives are reviewed at least annually for possible impairment. The Company may first assess qualitative factors in order to determine if goodwill and indefinite-lived intangible assets are impaired. If through the qualitative assessment it is determined that it is more likely than not that goodwill and indefinite-lived assets are not impaired, no further testing is required. If it is determined more likely than not that goodwill and indefinite-lived assets are impaired, or if the Company elects not to first assess qualitative factors, the Company’s impairment testing continues with the estimation of the fair value of reporting units and indefinite-lived intangible assets using a combination of a market approach and an income (discounted cash flow) approach, at the reporting unit level. The estimation of the fair value of reporting units and intangible assets requires significant management judgment with respect to revenue and expense growth rates, changes in working capital and the selection and use of an appropriate discount rate. The estimates of fair value of reporting units are based on the best information available as of the date of the assessment. The use of different assumptions would increase or decrease estimated discounted future operating cash flows and could increase or decrease an impairment charge. Company management uses its judgment in assessing whether assets may have become impaired between annual impairment tests. Indicators such as adverse business conditions, a sustained significant drop in the Company’s stock price, economic factors , technological change , or competitive activities may signal that an asset has become impaired. The Company identified its reporting units in conjunction with its annual goodwill impairment testing. The Company relies upon a number of factors, judgments and estimates when conducting its impairment testing including, but not limited to, the Company’s stock price, operating results, forecasts, anticipated future cash flows and marketplace data . There are inherent uncertainties related to these factors and judgments in applying them to the analysis of goodwill impairment. As of March 1, 2017, the Company performed its annual goodwill impairment test on the three reporting units that contain goodwill (excluding Atlas Lighting Products). The goodwill impairment test on one reporting unit in the Lighting Segment passed with a business enterprise value that was $60.0 million or 80% above the carrying value of this reporting unit including goodwill. The goodwill impairment test of the one reporting unit with goodwill in the Graphics Segment passed with an estimated business enterprise value that was $4.2 million or 424% above the carrying value of the reporting unit including goodwill. The goodwill impairment test of the reporting unit in the Technology Segment that contains goodwill passed with an estimated business enterprise value that was $23.2 million or 95% above the carrying value of this reporting unit including goodwill . The Company has performed an assessment of goodwill from the date of the annual test through the balance sheet date for possible triggering events and has concluded that there were no triggering events that would indicate the assets are impaired. There were no changes to the qualitative factors from the date of the Atlas acquisition that would indicate the goodwill is impaired. As of March 1, 2016, the Company performed its annual goodwill impairment test on the three reporting units that contain goodwill. The goodwill impairment test in the Lighting Segment passed with a business enterprise value that was $89.0 million or 112% above the carrying value of this reporting unit including goodwill. The goodwill impairment test of the one reporting unit with goodwill in the Graphics Segment passed with an estimated business enterprise value that was $1.7 million or 183% above the carrying value of the reporting unit including goodwill. The goodwill impairment test of the reporting unit in the Technology Segment that contains goodwill passed with an estimated business enterprise value that was $15.4 million or 59% above the carrying value of this reporting unit including goodwill. The Company acquired all of the capital stock of Atlas Lighting Products, Inc., on February 21, 2017 ( see Note 16 ). The total purchase price exceeded the estimated fair value of net assets by approximately $48.0million, which was allocated to goodwill. The Company completed its valuation of the goodwill and intangible assets in March 2017 and purchase price allocations have been made at February 21, 2017. While identified intangible assets related to the Atlas acquisition are being amortized effective February 21, 2017 over appropriate lives, goodwill will not be amortized on the Company’s financial statements. Goodwill and intangible assets related to Atlas Lighting Products are included in the assets of the Lighting Segment. Refer to Note 16 for additional information on the intangible assets of Atlas Lighting Products. The following table presents information about the Company's goodwill on the dates or for the periods indicated:
Goodwill |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(In thousands) |  | Lighting |  |  | Graphics |  |  | Technology |  |  |  |  |
|  | Segment |  |  | Segment |  |  | Segment |  |  | Total |
Balance as of June 30, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 34,913 |  |  | $ | 28,690 |  |  | $ | 11,621 |  |  | $ | 75,224 |
Accumulated impairment losses |  |  | (34,778 | ) |  |  | (27,525 | ) |  |  | (2,413 | ) |  |  | (64,716 | )
Goodwill, net as of June 30, 2016 |  | $ | 135 |  |  | $ | 1,165 |  |  | $ | 9,208 |  |  | $ | 10,508 |
Goodwill acquired |  | $ | 48,030 |  |  | $ | -- |  |  | $ | -- |  |  | $ | 48,030 |
Balance as of June 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 82,943 |  |  |  | 28,690 |  |  |  | 11,621 |  |  |  | 123,254 |
Accumulated impairment losses |  |  | (34,778 | ) |  |  | (27,525 | ) |  |  | (2,413 | ) |  |  | (64,716 | )
Goodwill, net as of June 30, 2017 |  | $ | 48,165 |  |  | $ | 1,165 |  |  | $ | 9,208 |  |  | $ | 58,538 |
The Company performed its annual review of indefinite-lived intangible assets as of March 1, 2017 and determined there was no impairment. The indefinite-lived intangible impairment test passed with a fair market value that was $15.2 million or 445% above its carrying value. The Company has performed an assessment of its intangible assets from the date of the annual test through the balance sheet date for possible triggering events and has concluded that there were no triggering events that would indicate the assets are impaired. In March 2017, a customer relationship intangible asset with a net book value of $ 479,000 related to the LED video screen product line in the Graphics Segment was determined to be fully impaired. The Company deemed that distribution channels and corresponding projected future cash flows that support the customer list intangible asset are not adequate to support the asset. As of March 1, 2016, the Company performed its annual review of indefinite-lived intangible assets and determined there was no impairment. The indefinite-lived intangible asset impairment test passed with a fair market value that was $ 8.4 million or 245% above its carrying value. In the first quarter of fiscal 2015, the Company sold LSI Saco Technologies Inc. A customer relationship intangible asset with a gross carrying amount of $1,306,000 and accumulated amortization of $428,000 was sold as a result of the sale of LSI Saco Technologies (See Note 17 ). The gross carrying amount and accumulated amortization by major other intangible asset class is as follows:
|  | June 30, 2017 |
Other Intangible Assets |  | Gross |  |  |  |  |  |  |  |  |
(In thousands) |  | Carrying |  |  | Accumulated |  |  | Net |
|  | Amount |  |  | Amortization |  |  | Amount |
Amortized Intangible Assets |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 35,563 |  |  | $ | 7,956 |  |  | $ | 27,607 |
Patents |  |  | 338 |  |  |  | 186 |  |  |  | 152 |
LED technology firmware, software |  |  | 16,066 |  |  |  | 11,237 |  |  |  | 4,829 |
Trade name |  |  | 2,658 |  |  |  | 499 |  |  |  | 2,159 |
Non-compete agreements |  |  | 710 |  |  |  | 710 |  |  |  | - |
Total Amortized Intangible Assets |  |  | 55,335 |  |  |  | 20,588 |  |  |  | 34,747 |
Indefinite-lived Intangible Assets |  |  |  |  |  |  |  |  |  |  |  |
Trademarks and trade names |  |  | 3,422 |  |  |  | -- |  |  |  | 3,422 |
Total Indefinite-lived Intangible Assets |  |  | 3,422 |  |  |  | -- |  |  |  | 3,422 |
Total Other Intangible Assets |  | $ | 58,757 |  |  | $ | 20,588 |  |  | $ | 38,169 |
|  | June 30, 2016 |
Other Intangible Assets |  | Gross |  |  |  |  |  |  |  |  |
|  | Carrying |  |  | Accumulated |  |  | Net |
(In thousands) |  | Amount |  |  | Amortization |  |  | Amount |
Amortized Intangible Assets |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 9,316 |  |  | $ | 7,581 |  |  | $ | 1,735 |
Patents |  |  | 338 |  |  |  | 154 |  |  |  | 184 |
LED technology firmware, software |  |  | 11,228 |  |  |  | 10,989 |  |  |  | 239 |
Trade name |  |  | 460 |  |  |  | 460 |  |  |  | -- |
Non-compete agreements |  |  | 710 |  |  |  | 704 |  |  |  | 6 |
Total Amortized Intangible Assets |  |  | 22,052 |  |  |  | 19,888 |  |  |  | 2,164 |
Indefinite-lived Intangible Assets |  |  |  |  |  |  |  |  |  |  |  |
Trademarks and trade names |  |  | 3,422 |  |  |  | -- |  |  |  | 3,422 |
Total Indefinite-lived Intangible Assets |  |  | 3,422 |  |  |  | -- |  |  |  | 3,422 |
Total Other Intangible Assets |  | $ | 25,474 |  |  | $ | 19,888 |  |  | $ | 5,586 |
|  | Amortization Expense of Other Intangible Assets |
(In thousands) |  | 2017 |  |  | 2016 |  |  | 2015 |
Amortization Expense |  | $ | 1,257 |  |  | $ | 506 |  |  | $ | 527 |
The Company expects to record annual amortization expense as follows:
(In thousands) |  |  |  |
2018 |  | $ | 2,760 |
2019 |  | $ | 2,760 |
2020 |  | $ | 2,687 |
2021 |  | $ | 2,682 |
2022 |  | $ | 2,461 |
After 2022 |  | $ | 21,397 |

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
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 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration