| Goodwill and Intangible Assets |
9. GOODWILL AND INTANGIBLE ASSETS Goodwill is an intangible asset that arises when a company acquires an existing business or assets (net of assumed liabilities) which comprise a business. In general, the amount of goodwill recorded in an acquisition is calculated as the purchase price of the business minus the fair market value of the tangible assets and the identifiable intangible assets, net of the assumed liabilities. Goodwill and intangibles can also be established by push-down accounting. Carrying Value The carrying value of goodwill and other purchased intangibles are described below (dollar amounts in thousands):
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June 30, 2026 |
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June 30, 2025 |
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Estimated Useful Lives
(Years) |
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Remaining Weighted-Average Amortization Period
(Years) |
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Gross Carrying Amount |
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Accumulated
Amortization |
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Accumulated
Impairment |
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Net Book Value |
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Gross Carrying Amount |
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Accumulated
Amortization |
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Accumulated
Impairment |
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Net Book Value |
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Identifiable intangible assets: |
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Existing customer relationships |
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4 - 15 |
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4.0 |
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$ |
138,674 |
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$ |
(87,421 |
) |
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$ |
— |
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$ |
51,253 |
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$ |
116,568 |
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$ |
(66,215 |
) |
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$ |
— |
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$ |
50,353 |
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Developed technology |
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4 |
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2.5 |
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24,136 |
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(16,481 |
) |
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— |
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7,655 |
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21,836 |
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(13,362 |
) |
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— |
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8,474 |
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Proprietary knowhow |
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15 |
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14.8 |
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2,200 |
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(88 |
) |
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— |
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2,112 |
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— |
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— |
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— |
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— |
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Non-compete and other |
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3 - 5 |
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1.3 |
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2,310 |
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(2,310 |
) |
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— |
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— |
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2,310 |
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(2,306 |
) |
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— |
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4 |
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Employment agreement |
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1 - 3 |
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0.0 |
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295 |
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(295 |
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— |
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— |
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295 |
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(295 |
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— |
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— |
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Intangibles subject to amortization |
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167,615 |
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(106,595 |
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— |
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61,020 |
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141,009 |
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(82,178 |
) |
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— |
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58,831 |
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Trade names and trademarks |
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Indefinite |
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Indefinite |
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76,459 |
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— |
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(1,290 |
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75,169 |
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69,658 |
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— |
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(1,290 |
) |
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68,368 |
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Domain name |
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Indefinite |
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Indefinite |
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8,629 |
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— |
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— |
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8,629 |
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8,615 |
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— |
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— |
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8,615 |
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In-process research and development |
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Indefinite |
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Indefinite |
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1,500 |
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— |
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— |
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1,500 |
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1,500 |
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— |
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— |
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1,500 |
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Identifiable intangible assets |
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$ |
254,203 |
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$ |
(106,595 |
) |
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$ |
(1,290 |
) |
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$ |
146,318 |
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$ |
220,782 |
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$ |
(82,178 |
) |
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$ |
(1,290 |
) |
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$ |
137,314 |
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Goodwill |
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Indefinite |
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Indefinite |
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$ |
252,167 |
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$ |
— |
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$ |
(1,364 |
) |
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$ |
250,803 |
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$ |
230,014 |
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$ |
— |
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$ |
(1,364 |
) |
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$ |
228,650 |
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The Company's intangible assets are subject to amortization except for trade names, trademarks, domain names and IPR&D, which have indefinite lives. Amortization expense related to the Company's intangible assets was $24.4 million, $18.3 million, and $8.6 million for the years ended June 30, 2026, 2025, and 2024, respectively. For the presented periods, amortization expense allocable to cost of sales was not significant. The changes in the carrying amounts of goodwill were as follows (in thousands):
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Balance as of June 30, 2024 |
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$ |
199,937 |
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Goodwill acquired - SGI - Wholesale Sales & Ancillary Services |
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6,919 |
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Goodwill acquired - SGI - Direct-to-Consumer |
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6,919 |
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Goodwill acquired - Pinehurst - Wholesale Sales & Ancillary Services |
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1,377 |
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Goodwill acquired - Pinehurst - Direct-to-Consumer |
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1,377 |
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Goodwill acquired - AMS - Direct-to-Consumer |
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12,122 |
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Balance as of June 30, 2025 |
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228,650 |
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Goodwill acquired - Monex - Direct-to-Consumer |
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16,235 |
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Goodwill acquired - SMI - Wholesale Sales & Ancillary Services |
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5,959 |
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Other |
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(41 |
) |
Balance as of June 30, 2026 |
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$ |
250,803 |
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Impairment We recorded a non-recurring impairment charge of $2.7 million (goodwill and indefinite-lived intangible assets) in fiscal 2018 related to Goldline. Other than the impairment charge related to Goldline, we have not recorded any impairment of goodwill or indefinite-lived intangible assets. Estimated Amortization Estimated annual amortization expense related to definite-lived intangible assets for the succeeding five years and thereafter is as follows (in thousands):
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Fiscal Year Ending June 30, |
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Amount |
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2027 |
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$ |
22,032 |
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2028 |
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16,928 |
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2029 |
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9,369 |
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2030 |
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5,554 |
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2031 |
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2,366 |
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Thereafter |
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4,771 |
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$ |
61,020 |
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