Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

v3.21.2
Goodwill and Intangible Assets
12 Months Ended
Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

11. Goodwill and Intangible Assets

The changes in the carrying amount of goodwill are as follows (in thousands):

Balance at June 30, 2019

54,501

Goodwill from fiscal 2020 acquisitions (as described in Note 3)

2,094

Other

83

Balance at June 30, 2020

$

56,678

Goodwill from YES Acquisition (as described in Note 3)

7,230

Working capital adjustments (1)

(27

)

Balance at June 30, 2021

63,881

(1) Relates to working capital adjustments from business acquisitions consummated by the Company during fiscal 2020

EVI Industries, Inc. and Subsidiaries

 

Notes to Consolidated Financial Statements

 

Customer-related intangibles, tradenames and other intangible assets as of June 30, 2021 and 2020 consisted of the following (dollars in thousands):

June 30,

Estimated

Useful Lives

(in years)

2021

2020

 

Customer-related intangibles

8-10

$

18,237

$

16,037

Tradenames

Indefinite

11,155

9,555

Covenants not to compete

5

566

566

License agreements

10

529

529

Trademarks and patents

10-15

176

176

30,663

26,863

Accumulated amortization

(6,986

)

(5,109

)

$

23,677

$

21,754

Amortization expense was approximately $1.9 million in fiscal 2021 and $1.7 million in fiscal 2020, and is included in selling, general and administrative expenses in the consolidated statements of operations. Weighted average remaining estimated useful lives for customer-related intangibles, covenants not to compete, license agreements, and trademarks and patents were 7.0 years, 0.6 years, 0 years and 0 years, respectively.

Based on the carrying amount of intangible assets as of June 30, 2021, and assuming no future impairment of the underlying assets, the estimated future amortization at the end of each fiscal year in the five-year period ending June 30, 2026 and thereafter is as follows (in thousands):

Fiscal years ending June 30,

 

 

2022

$

1,884

2023

1,841

2024

1,841

2025

1,837

2026

1,836

Thereafter

3,283

Total

$

12,522