Company: SXI
Filing Date: 2025-08-04
Form Type: 10-K
Source: 0001437749-25-024450
Chunk: 431

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-08-04
Form: 10-K
Item: Item 3
Chunk 431
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 Work in process   34,298   16,202 
 Finished goods   38,394   26,368 
 Total  $129,994  $87,106 

   Distribution costs associated with the sale of inventory are recorded as a component of selling, general and administrative expenses and were $11.5 million, $10.8 million, and $12.2 million in 2025, 2024 and 2023 respectively.

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   5. Property, plant and equipment 
    
   Property, plant and equipment consist of the following (in thousands):

     June 30   2025    2024  
 Land, buildings and leasehold improvements  $93,254  $86,539 
 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 impair