Note 6 - Goodwill and Other Intangible Assets
|
12 Months Ended |
---|---|
Jun. 30, 2012
|
|
Goodwill and Intangible Assets Disclosure [Text Block] |
At
both June 30, 2012 and 2011, we had $25.4 million of
goodwill, and $19.7 million of other indefinite-lived
intangible assets consisting of Ethan Allen trade names
in our wholesale segment. Our retail segment had $48.4
million of goodwill which was fully impaired in fiscal
2009.
In
the fourth quarter of fiscal 2012, the Company performed a
qualitative assessment of the fair value of the
wholesale reporting unit and concluded that the fair value
of its goodwill exceeded its carrying value. In fiscal
years 2011 and 2010 the Company performed a quantitative
assessment and determined the fair value of its wholesale
reporting unit exceeded its carrying value by a substantial
margin. The fair value of the trade name exceeded its
carrying value by a substantial margin in fiscal years
2012, 2011 and 2010. To calculate fair value of
these assets, management relies on estimates and
assumptions which by their nature have varying degrees of
uncertainty. Wherever possible, management therefore looks
for third party transactions as described above to provide
the best possible support for the assumptions incorporated.
Management considers several factors to be significant when
estimating fair value including expected financial outlook
of the business, changes in the Company’s stock
price, the impact of changing market conditions on
financial performance and expected future cash flows, and
other factors. Deterioration in any of these factors may
result in a lower fair value assessment, which could lead
to impairment of the long-lived assets and goodwill of the
Company.
|