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Goodwill and Other Intangible Assets | 6 Months Ended
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Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | 8. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The following table provides the changes in the carrying value of goodwill by reportable segment:
|  | North America |  |  | International |  |  | Total |
Balance as of June 30, 2024(1) |  | $ | 689,468 |  |  | $ | 239,836 |  |  | $ | 929,304 |
Divestiture(2) |  |  | (7,280 | ) |  |  | — |  |  |  | (7,280 | )
Translation |  |  | (1,914 | ) |  |  | (3,219 | ) |  |  | (5,133 | )
Impairment charge |  |  | (91,267 | ) |  |  | — |  |  |  | (91,267 | )
Balance as of December 31, 2024 |  | $ | 589,007 |  |  | $ | 236,617 |  |  | $ | 825,624 |
(1) The total carrying value of goodwill is reflected net of $134,277 of accumulated impairment charges, of which $7,700 is related to the North America reportable segment and $126,577 is related to the International reportable segment. (2) During the six months ended December 31, 2024, the Company completed the divestiture of ParmCrisps®, a component of the North America reportable segment. Goodwill of $7,280 was assigned to the divested component on a relative fair value basis. As of December 31, 2024, the Company performed an assessment of factors to determine whether it was more likely than not that the fair value of each reporting unit within both of the North America and International reportable segments was less than its respective carrying amount, including goodwill. As a result of the continued decline in the Company’s market capitalization and the recognition of significant intangible asset impairment charges within the reporting units in its North America reportable segment during the three months ended December 31, 2024, the Company completed an interim quantitative impairment test for goodwill for both its U.S. and Canada reporting units within the North America reportable segment as of December 31, 2024. For the United Kingdom, Western Europe, and Ella’s Kitchen UK reporting units, the Company performed a qualitative evaluation to assess factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount, including goodwill. The Company concluded that the qualitatively tested reporting units estimated fair values exceeded their carrying amounts. During the three months ended December 31, 2024, the Company conducted interim quantitative impairment tests of goodwill for both the U.S. and Canada reporting units. The fair values were estimated using a blended approach of the Discounted Cash Flow (“DCF”) method income approach and the Guideline Public Company Methodology (“GPCM”) market approach. As of December 31, 2024, the U.S. reporting unit’s carrying amount exceeded its estimated fair value of $800,000, resulting in the recognition of a non-cash impairment charge of $91,267 to reduce the carrying value of the U.S. reporting unit goodwill from $633,774 to $542,507. The goodwill related to the U.S. reporting unit remains at risk of potential impairment if the fair value of this reporting unit, and its associated assets, decrease in value due to the amount and timing of expected future cash flows, decreased customer demand for products, an inability to execute management’s business strategies, or general market conditions, such as economic downturns, and changes in interest rates, including discount rates. Future cash flow estimates are, by their nature, subjective, and actual results may differ materially from the Company’s estimates. If the Company’s ongoing cash flow projections are not met or if market factors utilized in the impairment test deteriorate, including an unfavorable change in the terminal growth rate or the weighted-average cost of capital, the Company may have to record additional impairment charges in future periods. The Canada reporting unit’s estimated fair value significantly exceeded its carrying amount as of December 31, 2024, indicating no risk of potential impairment. As of December 31, 2024, goodwill associated with the Canada reporting unit had a carrying value of $46,501. Other Intangible Assets The following table includes the gross carrying amount and accumulated amortization, where applicable, for intangible assets, excluding goodwill:
|  | December 31, 2024 |  |  | June 30, 2024 |
Non-amortized intangible assets: |  |  |  |  |  |
Trademarks and tradenames(1) |  | $ | 190,677 |  |  | $ | 195,237 |
Amortized intangible assets: |  |  |  |  |  |
Other intangibles(2) |  |  | 149,524 |  |  |  | 167,886 |
Less: Accumulated amortization |  |  | (116,549 | ) |  |  | (118,324 | )
Net amortized intangible assets |  |  | 32,975 |  |  |  | 49,562 |
Net other intangible assets |  | $ | 223,652 |  |  | $ | 244,799 |
(1) The gross carrying value of trademarks and tradenames is reflected net of $254,887 and $251,551 of a ccumulated impairment charges as of December 31, 2024 and June 30, 2024, respectively. (2) The reduction in carrying value of other intangible assets as of December 31, 2024 reflected accumulated non-cash impairment charges of $29,366 and $17,032 recognized as of December 31, 2024 and June 30, 2024, respectively. During the three months ended December 31, 2024, the Company recorded a non-cash impairment charge of $15,733 within its North America reportable segment related to its personal care intangible assets (primarily Avalon Organics® JASON®, and Live Clean® trademarks and tradenames) in connection with the Company’s announcement to explore strategic alternatives associated with its personal care business. The Company determined that not all criteria were met to be able to classify the personal care business as held for sale as of December 31, 2024, since the Company had not sought approval from its Board of Directors to explore strategic alternatives for such business prior to that date. However, since a plan was initiated shortly after the balance sheet date, the Company determined that the associated long-lived assets should be tested for recoverability as of December 31, 2024. To determine the amount of the impairment, the Company compared the carrying amount of the personal care intangible assets to their estimated fair value. The assets are part of the North America reportable segment and have a remaining aggregate carrying amount of nil as of December 31, 2024. Amortized intangible assets, which are deemed to have a finite life, primarily consist of customer relationships, trademarks and tradenames and are amortized over their estimated useful lives of 7 to 25 years. The weighted average remaining amortization period of amortized intangible assets is 8.1 years. Amortization expense included in the consolidated statements of operations is as follows:
|  | Three Months Ended December 31, |  |  | Six Months Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Amortization of acquired intangibles |  | $ | 1,753 |  |  | $ | 1,509 |  |  | $ | 3,933 |  |  | $ | 3,464 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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