Company: SXI
Filing Date: 2025-08-04
Form Type: 10-K
Source: 0001437749-25-024450
Chunk: 650

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-08-04
Form: 10-K
Item: Item 7
Chunk 650
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,539 
 Machinery, equipment and other   280,183   236,375 
 Total   373,437   322,914 
 Less accumulated depreciation   (213,073)  (187,951)
 Property, plant and equipment, net  $160,364  $134,963 

   Depreciation expense totaled $19.2 million, $18.6 million, and $18.2 million, respectively for the years ended  June 30, 2025, 2024 and 2023.

   6. Goodwill
    
   Goodwill and certain indefinite-lived intangible assets are not amortized, but instead are tested for impairment at least annually and more frequently whenever events or changes in circumstances indicate that the fair value of the asset  may be less than its carrying amount. The Company’s annual test for impairment is performed using a  May 31st measurement date.
    
   The Company has identified six reporting units for impairment testing: Electronics, Engineering Technologies, Scientific, Engraving, Federal, and Hydraulics. The Specialty Solutions segment 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