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Note F - Goodwill and Other Intangibles | 12 Months Ended
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Jun. 30, 2019
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | F . GOODWILL AND OTHER INTANGIBLES Goodwill The Company reviews goodwill for impairment on a reporting unit basis annually as of the first day of the Company’s fourth fiscal quarter, and whenever events or changes in circumstances (“triggering events”) indicate that the carrying value of goodwill may not be recoverable. In fiscal 2018 and prior years, the annual testing date was the last day of the fiscal year. In fiscal 2019, the Company changed its annual testing date to the first day of the Company’s fourth fiscal quarter in order to provide the Company more time and better information to perform the analyses. The Company does not believe that this change constitutes a material change to the method in applying an accounting principle. The fair value of reporting units is primarily driven by projected growth rates and operating results under the income approach using a discounted cash flow model, which applies an appropriate market-participant discount rate, and consideration of other market approach data from guideline public companies. If declining actual operating results or future operating results become indicative that the fair value of the Company’s reporting units has declined below their carrying values, an interim goodwill impairment test may need to be performed and may result in a non-cash goodwill impairment charge. If the Company’s market capitalization falls below the Company’s carrying value for a sustained period of time or if such a decline becomes indicative that the fair value of the Company’s reporting units has declined to below their carrying values, an interim goodwill impairment test may need to be performed and may result in a non-cash goodwill impairment charge. On July 2, 2018, as discussed in Note B, Acquisition of Veth Propulsion Holding B.V., the Company acquired goodwill in the amount of $23,999 and intangible assets in the amount of $26,500 consisting of customer relationships, technology and know-how, and trade names as part of the acquisition of Veth Propulsion. As of June 30, 2019, these amounts are final. The Company, in coordination with an independent valuation firm, completed its fair value measurements and has recorded all purchase accounting entries in its financial statements for the year ended June 30, 2019. Veth Propulsion is reported as part of the Company's manufacturing segment and European Propulsion reporting unit. During the 2019 fiscal year, the Company determined that there were no triggering events to warrant an interim goodwill impairment test. The Company conducted its annual assessment for goodwill impairment on March 30, 2019, the first day of its fourth fiscal quarter, its measurement date, using current assumptions, including updated forecasted cash flows and reporting unit specific discount rates of 13.0% and 14.0% for its European Propulsion and European Industrial reporting units, respectively, and concluded that goodwill is not impaired. As of June 30, 2019, goodwill in the amounts of $23,371 and $2,583 is carried in the European Propulsion and European Industrial reporting units, respectively. The fair values exceeded their carrying value by 118% and 41% for the European Propulsion and European Industrial reporting units, respectively, and therefore no impairment charge was required for these reporting units. The changes in the carrying amount of goodwill are summarized as follows:
|  | Net Book Value Rollforward |  |  | Net Book Value By Reporting Unit |
|  | Gross Carrying Amount |  |  | Accumulated Impairment |  |  | Net Book Value |  |  | European Industrial |  |  | European Propulsion |
Balance at June 30, 2017 |  | $ | 16,407 |  |  | $ | (13,822 | ) |  | $ | 2,585 |  |  | $ | 2,585 |  |  | $ | - |
Translation adjustment |  |  | 107 |  |  |  | - |  |  |  | 107 |  |  |  | 107 |  |  |  | - |
Balance at June 30, 2018 |  |  | 16,514 |  |  |  | (13,822 | ) |  |  | 2,692 |  |  |  | 2,692 |  |  |  | - |
Acquisition |  |  | 23,999 |  |  |  | - |  |  |  | 23,999 |  |  |  | - |  |  |  | 23,999 |
Translation adjustment |  |  | (737 | ) |  |  | - |  |  |  | (737 | ) |  |  | (109 | ) |  |  | (628 | )
Balance at June 30, 2019 |  | $ | 39,776 |  |  | $ | (13,822 | ) |  | $ | 25,954 |  |  | $ | 2,583 |  |  | $ | 23,371 |
Other Intangibles At June 30, the following acquired intangible assets have definite useful lives and are subject to amortization:
|  | Net Book Value Rollforward |  |  | Net Book Value By Asset Type |  |  |  |  |
|  | Gross Carrying Amount |  |  | Accumulated Amortization / Impairment |  |  | Net Book Value |  |  | Customer Relationships |  |  | Technology Know-how |  |  | Trade Name |  |  | Other |
Balance at June 30, 2017 |  | $ | 13,436 |  |  | $ | (11,632 | ) |  | $ | 1,804 |  |  | $ | - |  |  | $ | - |  |  | $ | 1,319 |  |  | $ | 485 |
Addition |  |  | 19 |  |  |  | - |  |  |  | 19 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 19 |
Amortization |  |  | - |  |  |  | (149 | ) |  |  | (149 | ) |  |  | - |  |  |  | - |  |  |  | (84 | ) |  |  | (65 | )
Translation adjustment |  |  | 30 |  |  |  | - |  |  |  | 30 |  |  |  | - |  |  |  | - |  |  |  | 53 |  |  |  | (23 | )
Balance at June 30, 2018 |  |  | 13,485 |  |  |  | (11,781 | ) |  |  | 1,704 |  |  |  | - |  |  |  | - |  |  |  | 1,288 |  |  |  | 416 |
Addition |  |  | 236 |  |  |  | - |  |  |  | 236 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 236 |
Acquistion |  |  | 26,500 |  |  |  | - |  |  |  | 26,500 |  |  |  | 16,300 |  |  |  | 8,400 |  |  |  | 1,800 |  |  |  | - |
Amortization |  |  | - |  |  |  | (2,653 | ) |  |  | (2,653 | ) |  |  | (1,123 | ) |  |  | (1,172 | ) |  |  | (261 | ) |  |  | (97 | )
Translation adjustment |  |  | (634 | ) |  |  | - |  |  |  | (634 | ) |  |  | (334 | ) |  |  | (203 | ) |  |  | (94 | ) |  |  | (3 | )
Balance at June 30, 2019 |  | $ | 39,587 |  |  | $ | (14,434 | ) |  | $ | 25,153 |  |  | $ | 14,843 |  |  | $ | 7,025 |  |  | $ | 2,733 |  |  | $ | 552 |
Other intangibles consist of certain proprietary technology, computer software, patents and licensing agreements. The weighted average remaining useful life of the intangible assets included in the table above is approximately 9 years. Intangible amortization expense for the years ended June 30, 2019 and 2018 was $2,653 and $149, respectively. Estimated intangible amortization expense for each of the next five fiscal years is as follows:
Fiscal Year |  |  |  |
2020 |  | $ | 2,904 |
2021 |  |  | 2,890 |
2022 |  |  | 2,874 |
2023 |  |  | 2,888 |
2024 |  |  | 2,789 |
Thereafter |  |  | 10,808 |
The gross carrying amount of the Company’s intangible assets that have indefinite lives and are not subject to amortization as of June 30, 2019 and 2018 are $200 and $202, respectively. These assets are comprised of acquired tradenames.

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