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Note 6 - Goodwill and Intangible Assets, Net

6 Months Ended

Dec. 29, 2024

Goodwill and Intangible Assets Disclosure [Text Block]

Note 6 – Goodwill and other intangibles, net

The following table presents goodwill by segment and the related change in the net carrying amount:

					*Gourmet*
	*Consumer*				*Foods &*
	*Floral &*				*Gift*
	*Gifts*		*BloomNet*		*Baskets*		*Total*
	(in thousands)
Balance at June 30, 2024	$	153,577	$	2,960	$	-	$	156,537
Acquisition of Scharffen Berger		-		-		111		111
Balance at December 29, 2024	$	153,577	$	2,960	$	111	$	156,648

The Company’s other intangible assets, net consist of the following:

		*December 29, 2024*						*June 30, 2024*
		*Gross*						*Gross*
	*Amortization*	*Carrying*		*Accumulated*				*Carrying*		*Accumulated*
	*Period*	*Amount*		*Amortization*		*Net*		*Amount*		*Amortization*		*Net*
	(in years)	(in thousands)
Intangible assets with determinable lives
Investment in licenses	14 - 16	$	7,420	$	6,727	$	693	$	7,420	$	6,674	$	746
Customer lists	3 - 10		29,647		26,986		2,661		29,647		25,932		3,715
Other	5 - 14		2,946		2,694		252		2,946		2,664		282
Total intangible assets with determinable lives			40,013		36,407		3,606		40,013		35,270		4,743
Trademarks with indefinite lives			111,473		-		111,473		111,473		-		111,473
Total identifiable intangible assets		$	151,486	$	36,407	$	115,079	$	151,486	$	35,270	$	116,216

Future estimated amortization expense is as follows: remainder of fiscal 2025 - $0.9 million, fiscal 2026 - $1.4 million, fiscal 2027 - $0.6 million, fiscal 2028 - $0.3 million, fiscal 2029 - $0.2 million and thereafter - $0.1 million.

The Company performs its annual assessment of goodwill and indefinite-lived intangibles impairment during its fiscal fourth quarter, or more frequently if events occur or circumstances change such that it is more likely than not that an impairment may exist.

During the quarter ended December 31, 2023, as a result of a decline in the actual and projected revenue for the Company’s PersonalizationMall tradename (indefinite-lived intangible asset), as well as a higher discount rate resulting from the higher interest rate environment, the Company determined that an impairment assessment was required. The Company’s impairment test for the indefinite-lived intangible asset encompassed calculating a fair value of the indefinite-lived intangible asset and comparing that result to its carrying value. To determine fair value of the indefinite-lived intangible asset, the Company used an income approach, the relief-from-royalty method. This method assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to obtain the rights to use the comparable asset. Indefinite-lived intangible assets’ fair values require significant judgments in determining both the assets’ estimated cash flows as well as the appropriate discount and royalty rates applied to those cash flows to determine fair value. Based on the impairment assessment performed for the quarter ending December 31, 2023, the Company recorded a non-cash impairment charge of $19.8 million to reduce the recorded carrying value of the PersonalizationMall tradename to its estimated fair value. This impairment charge was recorded in the Company’s Consumer Floral & Gifts reporting unit. The Company concluded that goodwill and other indefinite-lived intangible assets, excluding its PersonalizationMall tradename, did not require an impairment assessment.