Goodwill and Intangible Assets

12 Months Ended

Jun. 30, 2021

Note 8:Goodwill and Intangible Assets

Goodwill represents the excess of cost over the fair value of net assets acquired. Pursuant to ASC 350, “Intangibles — Goodwill and Other,” we review the recoverability of goodwill annually as of April 1 or whenever significant events or changes occur which might impair the recovery of recorded amounts. For purposes of the annual goodwill impairment assessment, the Company has identified three reporting units. There were no indicators of impairment identified and no goodwill impairments recorded during the years ended June 30, 2021 and 2020.

The following summarizes the changes in goodwill for the fiscal years ended June 30:


in thousands	2021		2020
Balance as of beginning of period	$	116,139	$	117,268
Adjustments^(a)		—		(1,129)
Goodwill acquired during the period		8,078		-
Balance as of end of period	$	124,217	$	116,139

(a)

The adjustment in fiscal year 2020 related to the final net working capital settlement for acquisitions that occurred during the fiscal year ended June 30, 2019.

Intangible assets consisted of the following as of June 30:


in thousands	2021		2020
Definite-lived intangible assets	$	6,600	$	6,600
Indefinite-lived intangible assets		2,000		—
Total intangible assets		8,600		6,600
Accumulated amortization		(2,082)		(1,423)
Balance as of end of period	$	6,518	$	5,177

Intangible assets with a finite useful life continue to be amortized over their useful lives. The Company recorded amortization expense of $0.7 million and $0.6 million for the years ended June 30, 2021 and 2020, respectively.

The total expected future annual amortization expense for the next 5 years ended June 30, is as follows:


in thousands	Amortization Expense
2022	$	660
2023		660
2024		660
2025		660
2026		660

We review the recoverability of other intangible assets in conjunction with long-lived assets whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. There were no intangible asset impairments recorded during the years ended June 30, 2021 and 2020.