Company: SXI
Filing Date: 2025-08-04
Form Type: 10-K
Source: 0001437749-25-024450
Chunk: 322

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-08-04
Form: 10-K
Item: Item 8
Chunk 322
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 includes Federal and Hydraulics.
    
   As quoted market prices are not available for the Company’s reporting units, the fair value of the reporting units is determined using a discounted cash flow model (income approach).  This method uses various assumptions that are specific to each individual reporting unit in order to determine the fair value. In addition, the Company compares the estimated aggregate fair value of its reporting units to its overall market capitalization.
    
   While the Company believes that estimates of future cash flows are reasonable, changes in assumptions could significantly affect valuations and result in impairments in the future.  The most significant assumption involved in the Company’s determination of fair value is the cash flow projections of each reporting unit.  If the estimates of future cash flows for each reporting unit  may be insufficient to support the carrying value of the reporting units, the Company will reassess its conclusions related to fair value and the recoverability of goodwill. 
    
   The Company completed its annual impairment testing as of  May 31, in each of the last three fiscal years and determined that the fair value of each of its reporting units substantially exceeded each unit’s respective carrying value, therefore, no impairment charges were recorded in connection with the testing and assessment. 
    
   Changes to goodwill by segment associated with continuing operations during the fiscal year is as follows (in thousands):

       June 30, 2024    Acquisitions    Impairments    Translation Adjustment    June 30, 2025  
 Electronics  $149,910  $305,793  $-  $3,348  $459,051 
 Engineering Technologies   36,255   16,761   -   762   53,778 
 Scientific   15,454   -   -   -   15,454 
 Engraving   76,605   -   -   2,391   78,996 
 Specialty Solutions   3,059   -   -   -   3,059 
 Total  $281,283  $322,554  $-  $6,501  $610,338 

   7. Intangible Assets
    
   Intangible assets consist of the following (in thousands):

           Tradenames              
   Customer    (Indefinite-    Developed          
   Relationships    lived