XML 30 R16.htm IDEA: XBRL DOCUMENT
v3.21.2

Note 8 - Goodwill and Other Intangible Assets | 3 Months Ended
--- | ---
Sep. 30, 2021
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 8 - 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 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. Prior to the acquisition of JSI, the Company had two reporting units that contain goodwill. One reporting unit is within the Lighting Segment and one reporting unit is within the Display Solutions Segment. The tradename intangible asset has an indefinite life and is also tested separately on an annual basis. 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:
(In thousands) |  |  |  |  |  | Display |  |  |  |  |
|  | Lighting |  |  | Solutions |  |  |  |  |
|  | Segment |  |  | Segment |  |  | Total |
Balance as of September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 70,971 |  |  | $ | 62,105 |  |  | $ | 133,076 |
Accumulated impairment losses |  |  | (61,763 | ) |  |  | (27,525 | ) |  |  | (89,288 | )
Goodwill, net as of September 30, 2021 |  | $ | 9,208 |  |  | $ | 34,580 |  |  | $ | 43,788 |
Balance as of June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 70,971 |  |  | $ | 28,690 |  |  | $ | 99,661 |
Goodwill acquired |  |  | - |  |  |  | 33,415 |  |  |  | 33,415 |
Accumulated impairment losses |  |  | (61,763 | ) |  |  | (27,525 | ) |  |  | (89,288 | )
Goodwill, net as of June 30, 2021 |  | $ | 9,208 |  |  | $ | 34,580 |  |  | $ | 43,788 |
The gross carrying amount and accumulated amortization by each major intangible asset class is as follows:
|  | September 30, 2021 |
(In thousands) |  | Gross |  |  |  |  |  |  |  |  |
|  | Carrying |  |  | Accumulated |  |  | Net |
|  | Amount |  |  | Amortization |  |  | Amount |
Amortized Intangible Assets |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 62,083 |  |  | $ | 11,839 |  |  | $ | 50,244 |
Patents |  |  | 268 |  |  |  | 245 |  |  |  | 23 |
LED technology firmware, software |  |  | 20,966 |  |  |  | 13,711 |  |  |  | 7,255 |
Trade name |  |  | 2,658 |  |  |  | 966 |  |  |  | 1,692 |
Non-compete |  |  | 260 |  |  |  | 19 |  |  |  | 241 |
Total Amortized Intangible Assets |  |  | 86,235 |  |  |  | 26,780 |  |  |  | 59,455 |
Indefinite-lived Intangible Assets |  |  |  |  |  |  |  |  |  |  |  |
Trademarks and trade names |  |  | 12,102 |  |  |  | - |  |  |  | 12,102 |
Total indefinite-lived Intangible Assets |  |  | 12,102 |  |  |  | - |  |  |  | 12,102 |
Total Other Intangible Assets |  | $ | 98,337 |  |  | $ | 26,780 |  |  | $ | 71,557 |
|  | June 30, 2021 |
(In thousands) |  | Gross |  |  |  |  |  |  |  |  |
|  | Carrying |  |  | Accumulated |  |  | Net |
|  | Amount |  |  | Amortization |  |  | Amount |
Amortized Intangible Assets |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 62,083 |  |  | $ | 10,967 |  |  | $ | 51,116 |
Patents |  |  | 268 |  |  |  | 237 |  |  |  | 31 |
LED technology firmware, software |  |  | 20,966 |  |  |  | 13,415 |  |  |  | 7,551 |
Trade name |  |  | 2,658 |  |  |  | 939 |  |  |  | 1,719 |
Non-compete |  |  | 260 |  |  |  | 6 |  |  |  | 254 |
Total Amortized Intangible Assets |  |  | 86,235 |  |  |  | 25,564 |  |  |  | 60,671 |
Indefinite-lived Intangible Assets |  |  |  |  |  |  |  |  |  |  |  |
Trademarks and trade names |  |  | 12,102 |  |  |  | - |  |  |  | 12,102 |
Total indefinite-lived Intangible Assets |  |  | 12,102 |  |  |  | - |  |  |  | 12,102 |
Total Other Intangible Assets |  | $ | 98,337 |  |  | $ | 25,564 |  |  | $ | 72,773 |
|  | Three Months Ended |
|  | September 30 |
(In thousands) |  | 2021 |  |  | 2020 |
Amortization Expense of Other Intangible Assets |  | $ | 1,215 |  |  | $ | 671 |
The Company expects to record annual amortization expense as follows:
(In thousands) |  |  |  |
2022 |  | $ | 4,808 |
2023 |  | $ | 4,760 |
2024 |  | $ | 4,760 |
2025 |  | $ | 4,760 |
2026 |  | $ | 4,754 |
After 2026 |  | $ | 36,829 |

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 goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -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: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration