XML 27 R11.htm IDEA: XBRL DOCUMENT
v3.21.2

Note D - Intangible Assets | 12 Months Ended
--- | ---
Jun. 30, 2021
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | D. INTANGIBLE ASSETS 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, 2019 |  | $ | 39,587 |  |  | $ | (14,434 | ) |  | $ | 25,153 |  |  | $ | 14,843 |  |  | $ | 7,025 |  |  | $ | 2,733 |  |  | $ | 552 |
Addition |  |  | 92 |  |  |  | - |  |  |  | 92 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 92 |
Amortization |  |  | - |  |  |  | (4,532 | ) |  |  | (4,532 | ) |  |  | (3,003 | ) |  |  | (1,139 | ) |  |  | (232 | ) |  |  | (158 | )
Impairment |  |  | - |  |  |  | (1,306 | ) |  |  | (1,306 | ) |  |  | - |  |  |  | - |  |  |  | (1,080 | ) |  |  | (226 | )
Translation adjustment |  |  | (434 | ) |  |  | - |  |  |  | (434 | ) |  |  | (286 | ) |  |  | (102 | ) |  |  | (33 | ) |  |  | (13 | )
Balance at June 30, 2020 |  |  | 39,245 |  |  |  | (20,272 | ) |  |  | 18,973 |  |  |  | 11,554 |  |  |  | 5,784 |  |  |  | 1,388 |  |  |  | 247 |
Addition |  |  | 833 |  |  |  | - |  |  |  | 833 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 833 |
Amortization |  |  | - |  |  |  | (3,390 | ) |  |  | (3,390 | ) |  |  | (1,880 | ) |  |  | (1,226 | ) |  |  | (184 | ) |  |  | (100 | )
Translation adjustment |  |  | 1,064 |  |  |  | - |  |  |  | 1,064 |  |  |  | 647 |  |  |  | 325 |  |  |  | 78 |  |  |  | 14 |
Balance at June 30, 2021 |  | $ | 41,142 |  |  | $ | (23,662 | ) |  | $ | 17,480 |  |  | $ | 10,321 |  |  | $ | 4,883 |  |  | $ | 1,282 |  |  | $ | 994 |
Other intangibles consist mainly of computer software. 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 7 years. Intangible amortization expense for the years ended June 30, 2021 and 2020 was $3,390 and $4,532, respectively. Estimated intangible amortization expense for each of the next five fiscal years is as follows:
Fiscal Year |  |  |  |
2022 |  | $ | 3,316 |
2023 |  |  | 3,144 |
2024 |  |  | 2,988 |
2025 |  |  | 2,817 |
2026 |  |  | 1,427 |
Thereafter |  |  | 3,788 |
Goodwill and Other Intangibles Impairment Charge in Fiscal 2020 Prior to the third quarter of fiscal 2020, the Company carried goodwill in the amount $25,380. As a result of the economic disruptions and unprecedented market volatilities and uncertainties driven by the COVID-19 outbreak, the Company experienced significant supply chain disruptions and a slowdown in the demand for its products. The Company believed that the negative economic impacts of the COVID-19 outbreak was a triggering event in the third quarter of fiscal 2020 that required it to perform an interim goodwill impairment test as of the quarter ended March 27, 2020. The Company completed its assessment for goodwill impairment as of March 27, 2020 with the assistance of a third party expert, using updated inputs, such as updated cash flow projections and an appropriate risk-based, company specific weighted average discount rate of 13.0%. The assessment resulted in the full impairment of goodwill, which pertained to the European Propulsion and European Industrial reporting units, in the amount of $25,380. As a result of the full impairment of goodwill, the balance of goodwill at June 30, 2021 and June 30, 2020 was zero. There will no longer be a need for future goodwill impairment tests unless the Company acquires new goodwill in the future through a business combination. As a consequence of these macroeconomic developments, market insights and expectations, and the occurrence of a triggering event in the quarter, the Company also performed an assessment of its intangibles and other long-lived assets. The Company performed an undiscounted operating cash flow analysis as of March 27, 2020, as well as the review of other assets in service and their remaining useful lives. It was determined that an impairment charge pertaining to certain tradenames, licenses and other assets was required, in the amount of $2,223. The total non-cash impairment charge of $27,603 in fiscal year 2020, as described above, was a non-cash charge and is reported on the goodwill and other asset impairment charge line in the consolidated statement of operations within the manufacturing segment. The tax impact of this charge was to increase the income tax expense (benefit) by $1,199. 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 Propulsion |  |  | European Industrial |
Balance at June 30, 2019 |  | $ | 39,776 |  |  | $ | (13,822 | ) |  | $ | 25,954 |  |  | $ | 23,371 |  |  | $ | 2,583 |
Impairment |  |  | - |  |  |  | (25,380 | ) |  |  | (25,380 | ) |  |  | (22,822 | ) |  |  | (2,558 | )
Translation adjustment |  |  | (574 | ) |  |  | - |  |  |  | (574 | ) |  |  | (549 | ) |  |  | (25 | )
Balance at June 30, 2020 |  |  | 39,202 |  |  |  | (39,202 | ) |  |  | - |  |  |  | - |  |  |  | - |
Translation adjustment |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Balance at June 30, 2021 |  | $ | 39,202 |  |  | $ | (39,202 | ) |  | $ | - |  |  | $ | - |  |  | $ | - |

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 -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration