TWIN DISC INC Goodwill & Intangibles Disclosure

E. GOODWILL AND INTANGIBLE ASSETS, NET

 

Goodwill represents the excess of the consideration transferred net of the acquisition-date fair values of the identifiable assets acquired and the liabilities assumed.

 

On February 14, 2025, as discussed in Note B, the Company acquired goodwill in the estimated amount of $2,806 and intangible assets in the estimated amount of $2,847 as part of the acquisition of Kobelt.

 

As of June 30, 2025, changes in the carrying amount of goodwill is summarized as follows:

 

		Net Book Value Rollforward
Balance at June 30, 2024		$	-
Acquisition			2,806
Translation adjustment			86
Balance at June 30, 2025		$	2,892

 

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 Names				Other				Total
Balance at June 30, 2023		$	31,925			$	(19,288	)		$	12,637			$	6,553			$	2,422			$	668			$	2,994			$	12,637
Additions			5,382				(1,894	)			3,488				1,519				987				857				125				3,488
Reduction			(714	)			714				-				-				-				-				-				-
Amortization			-				(3,273	)			(3,273	)			(1,245	)			(1,280	)			-				(748	)			(3,273	)
Translation adjustment			(166	)			-				(166	)			(107	)			(40	)			(5	)			(14	)			(166	)
Balance at June 30, 2024			36,427				(23,741	)			12,686				6,720				2,089				1,520				2,357				12,686
Additions			3,471				-				3,471				1,187				908				628				748				3,471
Amortization			-				(3,959	)			(3,959	)			(1,341	)			(1,312	)			(281	)			(1,025	)			(3,959	)
Translation adjustment			3,505				(2,342	)			1,163				629				149				169				216				1,163
Balance at June 30, 2025		$	43,403			$	(30,042	)		$	13,361			$	7,195			$	1,834			$	2,036			$	2,296			$	13,361

 

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, 2025 and 2024 was $3,959 and $3,273, respectively. Estimated intangible amortization expense for each of the next five fiscal years is as follows:

 

Fiscal Year
2026		$	2,614
2027			2,414
2028			2,297
2029			1,925
2030			635
Thereafter			3,476
Total		$	13,361