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Note 7 - Goodwill and Other Intangible Assets | 6 Months Ended
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Dec. 31, 2020
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 7 - GOODWILL AND OTHER INTANGIBLE ASSETS The 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 the reporting unit 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 unit 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 the fair value of reporting units are based on the best information available as of the date of the assessment. The fair value measurements of the reporting units are based on significant inputs not observable in the market and thus represent Level 3 measurements as defined by ASC 820 “Fair Value Measurements.” 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, economic factors and 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 has a total of two reporting units that contain goodwill. There is one reporting unit within the Lighting Segment and one reporting unit within the Graphics Segment. 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. The following table presents information about the Company's goodwill on the dates or for the periods indicated:
Goodwill |  |  |  |  |  |  |  |  |  |  |  |
(In thousands) |  | Lighting |  |  | Graphics |  |  |  |  |
|  | Segment |  |  | Segment |  |  | Total |
Balance as of December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 70,971 |  |  | $ | 28,690 |  |  | $ | 99,661 |
Accumulated impairment losses |  |  | (61,763 | ) |  |  | (27,525 | ) |  |  | (89,288 | )
Goodwill, net as of December 31, 2020 |  | $ | 9,208 |  |  | $ | 1,165 |  |  | $ | 10,373 |
Balance as of June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 86,711 |  |  | $ | 28,690 |  |  | $ | 115,401 |
Accumulated impairment losses |  |  | (77,503 | ) |  |  | (27,525 | ) |  |  | (105,028 | )
Goodwill, net as of June 30, 2020 |  | $ | 9,208 |  |  | $ | 1,165 |  |  | $ | 10,373 |
In the second quarter of fiscal 2021, the Company wrote-off the goodwill and impairment loss for a dissolved entity. The net impact to the consolidated financial statements, including the goodwill, net balance, was zero. The following table presents the gross carrying amount and accumulated amortization by each major asset class:
Other Intangible Assets |  | December 31, 2020 |
(In thousands) |  | Gross |  |  |  |  |  |  |  |  |
|  | Carrying |  |  | Accumulated |  |  | Net |
|  | Amount |  |  | Amortization |  |  | Amount |
Amortized Intangible Assets |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 30,163 |  |  | $ | 9,758 |  |  | $ | 20,405 |
Patents |  |  | 268 |  |  |  | 222 |  |  |  | 46 |
LED technology firmware, software |  |  | 16,066 |  |  |  | 13,094 |  |  |  | 2,972 |
Trade name |  |  | 2,658 |  |  |  | 884 |  |  |  | 1,774 |
Total Amortized Intangible Assets |  |  | 49,155 |  |  |  | 23,958 |  |  |  | 25,197 |
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 |  | $ | 52,577 |  |  | $ | 23,958 |  |  | $ | 28,619 |
Other Intangible Assets |  | June 30, 2020 |
(In thousands) |  | Gross |  |  |  |  |  |  |  |  |
|  | Carrying |  |  | Accumulated |  |  | Net |
|  | Amount |  |  | Amortization |  |  | Amount |
Amortized Intangible Assets |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 35,563 |  |  | $ | 14,129 |  |  | $ | 21,434 |
Patents |  |  | 338 |  |  |  | 277 |  |  |  | 61 |
LED technology firmware, software |  |  | 16,066 |  |  |  | 12,852 |  |  |  | 3,214 |
Trade name |  |  | 2,658 |  |  |  | 829 |  |  |  | 1,829 |
Total Amortized Intangible Assets |  |  | 54,625 |  |  |  | 28,087 |  |  |  | 26,538 |
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 |  | $ | 58,047 |  |  | $ | 28,087 |  |  | $ | 29,960 |
In the second quarter of fiscal 2021, the Company wrote-off intangible assets’ gross carrying amount and accumulated amortization for a dissolved entity. The net impact to the consolidated financial statements, including the total other intangible assets, was zero.
|  | Three Months Ended |  |  | Six Months Ended |
|  | December 31 |  |  | December 31 |
(In thousands) |  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Amortization Expense of Other Intangible Assets |  | $ | 670 |  |  | $ | 671 |  |  | $ | 1,341 |  |  | $ | 1,346 |
The Company expects to record annual amortization expense as follows:
(In thousands) |  |  |  |
2021 |  | $ | 2,682 |
2022 |  | $ | 2,461 |
2023 |  | $ | 2,412 |
2024 |  | $ | 2,412 |
2025 |  | $ | 2,412 |
After 2025 |  | $ | 14,159 |

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