XML 27 R14.htm IDEA: XBRL DOCUMENT
v3.23.2

Note 6 - Goodwill and Other Intangible Assets | 12 Months Ended
--- | ---
Jun. 30, 2023
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 6 — 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. The Company has a total of three reporting units that contain goodwill. One reporting unit is within the Lighting Segment and two reporting units are within the Display Solutions Segment. The tradename intangible assets have an indefinite life and are 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. Fiscal 2023: As of March 1, 2023, the Company performed its annual goodwill impairment test on the three reporting units that contain goodwill. The goodwill impairment test of the reporting unit in the Lighting Segment passed with a business enterprise value of $34.4 million or 21% above the carrying value of the reporting unit including goodwill. The goodwill impairment test of one reporting unit with goodwill in the Display Solutions Segment passed with an estimated business enterprise value of $13.6 million or 5,426% above the carrying value of the reporting unit including goodwill. The goodwill impairment test of the second reporting unit with goodwill in the Display Solutions Segment passed with an estimated business enterprise value of $99.4 million or 15% above the carrying value of the reporting unit including goodwill. The Company has two indefinite-lived intangible assets. The Company performed its annual review of indefinite-lived intangible assets as of March 1, 2023, and determined there was no impairment. The impairment test of the first indefinite-lived intangible asset passed with a fair market value of $17.0 million or 399% above its carrying value. The impairment test of the second indefinite-lived intangible asset passed with a fair market value of and $10.5 million or 21% above its carrying value. Fiscal 2022: As of March 1, 2022 the Company performed its annual goodwill impairment test on the three reporting units that contain goodwill. The goodwill impairment test of the reporting unit in the Lighting Segment passed with a business enterprise value of $31.6 million or 18% above the carrying value of the reporting unit including goodwill. The goodwill impairment test of one reporting unit with goodwill in the Display Solutions Segment passed with an estimated business enterprise value of $12.2 million or 1,316% above the carrying value of the reporting unit including goodwill. The goodwill impairment test of the second reporting unit with goodwill in the Display Solutions Segment passed with an estimated business enterprise value of $100.4 million or 12% above the carrying value of the reporting unit including goodwill. The Company has two indefinite-lived intangible assets. The Company also performed its annual review of indefinite-lived intangible assets as of March 1, 2022,and determined there was no impairment. The impairment test of the first indefinite-lived intangible asset passed with a fair market value of $17.0 million or 396% above its carrying value. The impairment test of the second indefinite-lived intangible asset passed with a fair market value of and $10.6 million or 22% above its carrying value. The following table presents information about the Company's goodwill on the dates or for the periods indicated:
(In thousands) |  | Lighting Segment Segment |  |  | Display SolutionsSegment Solutions Segment |  |  | Total |
Balance as of June 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 70,971 |  |  | $ | 62,105 |  |  | $ | 133,076 |
Measurement period adjustment |  |  | - |  |  |  | 1,242 |  |  |  | 1,242 |
Accumulated impairment losses |  |  | (61,763 | ) |  |  | (27,525 | ) |  |  | (89,288 | )
Goodwill, net as of June 30, 2022 |  | $ | 9,208 |  |  | $ | 35,822 |  |  | $ | 45,030 |
Balance as of June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 70,971 |  |  | $ | 63,347 |  |  | $ | 134,318 |
Accumulated impairment losses |  |  | (61,763 | ) |  |  | (27,525 | ) |  |  | (89,288 | )
Goodwill, net as of June 30, 2023 |  | $ | 9,208 |  |  | $ | 35,822 |  |  | $ | 45,030 |
In fiscal 2022, the Company recorded measurement period adjustments to the original purchase price of JSI Store Fixtures which impacted the amount of goodwill originally reported. The gross carrying amount and accumulated amortization by major other intangible asset class is as follows:
(In thousands) |  | June 30, 2023 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Amount |
Amortized Intangible Assets |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 62,083 |  |  | $ | 17,817 |  |  | $ | 44,266 |
Patents |  |  | 268 |  |  |  | 268 |  |  |  | - |
LED technology, software |  |  | 20,966 |  |  |  | 15,783 |  |  |  | 5,183 |
Trade name |  |  | 2,658 |  |  |  | 1,156 |  |  |  | 1,502 |
Non-compete |  |  | 260 |  |  |  | 110 |  |  |  | 150 |
Total Amortized Intangible Assets |  | $ | 86,235 |  |  | $ | 35,134 |  |  | $ | 51,101 |
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 |  |  | $ | 35,134 |  |  | $ | 63,203 |
(In thousands) |  | June 30, 2022 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Amount |
Amortized Intangible Assets |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 62,083 |  |  | $ | 14,400 |  |  | $ | 47,683 |
Patents |  |  | 268 |  |  |  | 268 |  |  |  | - |
LED technology, software |  |  | 20,966 |  |  |  | 14,598 |  |  |  | 6,368 |
Trade name |  |  | 2,658 |  |  |  | 1,049 |  |  |  | 1,609 |
Non-compete |  |  | 260 |  |  |  | 58 |  |  |  | 202 |
Total Amortized Intangible Assets |  | $ | 86,235 |  |  | $ | 30,373 |  |  | $ | 55,862 |
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 |  |  | $ | 30,373 |  |  | $ | 67,964 |
(In thousands) |  | 2023 |  |  | 2022 |
Amortization expense of other intangible assets |  | $ | 4,761 |  |  | $ | 4,809 |
The Company expects to record annual amortization expense as follows:
(In thousands) |  |  |  |
2024 |  | $ | 4,760 |
2025 |  | $ | 4,760 |
2026 |  | $ | 4,760 |
2027 |  | $ | 4,754 |
2028 |  | $ | 4,708 |
After 2028 |  | $ | 27,359 |

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 -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration