NOTE 7 – GOODWILL AND INTANGIBLE ASSETS

Goodwill

Changes in the carrying amount of goodwill by reporting segment is as follows:

(In thousands)

United States

 

 

Canada

 

 

Total

 

Balance as of June 30, 2024

$

73,304

 

 

$

19,739

 

 

$

93,043

 

Acquisitions

 

24,490

 

 

 

 

 

 

24,490

 

Foreign currency translation

 

 

 

 

104

 

 

 

104

 

 

 

 

 

 

 

 

 

 

Balance as of June 30, 2025

$

97,794

 

 

$

19,843

 

 

$

117,637

 

Intangible Assets

Intangible assets consist of the following:

 

June 30, 2025

 

(In thousands)

Weighted
Average
Amortization
Period

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

Customer related

9.2 years

 

$

150,339

 

 

$

(104,648

)

 

$

45,691

 

Trade names and trademarks

5.6 years

 

 

15,409

 

 

 

(13,269

)

 

 

2,140

 

Developed technology

1.4 years

 

 

4,091

 

 

 

(2,932

)

 

 

1,159

 

Licenses

1.7 years

 

 

764

 

 

 

(631

)

 

 

133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

170,603

 

 

$

(121,480

)

 

$

49,123

 

 

 

 

June 30, 2024

 

(In thousands)

Weighted
Average
Amortization
Period

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

Customer related

8.5 years

 

$

125,552

 

 

$

(95,383

)

 

$

30,169

 

Trade names and trademarks

6.6 years

 

 

15,382

 

 

 

(12,857

)

 

 

2,525

 

Developed technology

2.4 years

 

 

4,091

 

 

 

(2,114

)

 

 

1,977

 

Licenses

2.7 years

 

 

760

 

 

 

(551

)

 

 

209

 

Covenants not to compete

0.6 years

 

 

1,433

 

 

 

(1,370

)

 

 

63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

147,218

 

 

$

(112,275

)

 

$

34,943

 

Amortization expense was $10,618 and $10,461 for the fiscal years ended June 30, 2025 and 2024, respectively.

Future amortization expense for each of the next five fiscal years ending June 30 are as follows:

(In thousands)

 

 

 

 

2026

 

 

$

6,952

 

2027

 

 

 

6,352

 

2028

 

 

 

5,607

 

2029

 

 

 

5,023

 

2030

 

 

 

4,826

 

Historical Timeline

Fiscal YearFiled
2025Sep 15, 2025Showing above
2024Sep 12, 2024
2023Sep 13, 2023
2022Feb 27, 2023
2021Sep 20, 2021
2020Sep 28, 2020
2019Sep 12, 2019
2018Sep 13, 2018
2017Sep 12, 2017
2016Sep 13, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.