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Note I - Goodwill and Other Intangibles | 6 Months Ended
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Dec. 27, 2019
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] |
I . | Goodwill and Other Intangibles
Goodwill represents the amount of the consideration transferred in excess of the net of the acquisition-date fair values of the identifiable assets acquired and the liabilities assumed. 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. 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. During the first half of fiscal 2020, the Company determined that there were no triggering events to warrant an interim goodwill impairment test. As of December 27, 2019, goodwill in the amounts of $23,013 and $2,548 is carried in the European Propulsion and European Industrial reporting units, respectively. As of December 27, 2019, changes in the carrying amount of goodwill is summarized as follows:
|  | Net Book Value Rollforward |  |  | By Reporting Unit |
|  | Gross Carrying Amount |  |  | Accumulated Amortization / Impairment |  |  | Net Book Value |  |  | European Propulsion |  |  | European Industrial |
Balance at June 30, 2019 |  | $ | 39,776 |  |  | $ | (13,822 | ) |  | $ | 25,954 |  |  | $ | 23,371 |  |  | $ | 2,583 |
Translation adjustment |  |  | (393 | ) |  |  | - |  |  |  | (393 | ) |  |  | (358 | ) |  |  | (35 | )
Balance at December 27, 2019 |  | $ | 39,383 |  |  | $ | (13,822 | ) |  | $ | 25,561 |  |  | $ | 23,013 |  |  | $ | 2,548 |
As of December 27, 2019, 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, 2019 |  | $ | 39,587 |  |  | $ | (14,434 | ) |  | $ | 25,153 |  |  | $ | 14,843 |  |  | $ | 7,025 |  |  | $ | 2,733 |  |  | $ | 552 |
Additions |  |  | 53 |  |  |  | - |  |  |  | 53 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 53 |
Amortization |  |  | - |  |  |  | (2,272 | ) |  |  | (2,272 | ) |  |  | (1,500 | ) |  |  | (569 | ) |  |  | (126 | ) |  |  | (77 | )
Translation adjustment |  |  | (509 | ) |  |  | - |  |  |  | (509 | ) |  |  | (334 | ) |  |  | (127 | ) |  |  | (44 | ) |  |  | (4 | )
Balance at December 27, 2019 |  | $ | 39,131 |  |  | $ | (16,706 | ) |  | $ | 22,425 |  |  | $ | 13,009 |  |  | $ | 6,329 |  |  | $ | 2,563 |  |  | $ | 524 |
Other intangibles consist of certain proprietary technology, computer software, patents and licensing agreements. Amortization is recorded on the basis of straight-line or accelerated, as appropriate, over the estimated useful lives of the assets. The weighted average remaining useful life of the intangible assets included in the table above is approximately 9 years. Intangible amortization expense was $1,143 and $583 for the quarters ended December 27, 2019, and December 28, 2018, respectively. Intangible amortization expense was $2,272 and $1,249 for the two quarters ended December 27, 2019, and December 28, 2018, respectively. Estimated intangible amortization expense for the remainder of fiscal 2020 and each of the next five fiscal years is as follows:
Fiscal Year |  |  |  |
2020 |  | $ | 2,297 |
2021 |  |  | 3,305 |
2022 |  |  | 3,120 |
2023 |  |  | 2,960 |
2024 |  |  | 2,748 |
2025 |  |  | 2,562 |
The gross carrying amount of the Company’s intangible assets that have indefinite lives and are not subject to amortization as of December 27, 2019 and June 30, 2019 was $200 and $200, respectively. These assets are comprised of acquired trade names.

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