Annual report pursuant to Section 13 and 15(d)

Note 5 - Goodwill and Other Intangible Assets

Note 5 - Goodwill and Other Intangible Assets
12 Months Ended
Jun. 30, 2015
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]
Goodwill and Other Intangible Assets
At both June 30, 2015 and 2014, we had $25.4 million of goodwill, and $19.7 million of other indefinite-lived intangible assets consisting of Ethan Allen trade names, all of which is in our wholesale segment.
In the fourth quarter of fiscal years 2015, 2014, and 2013, the Company performed qualitative assessments of the
fair value of the wholesale reporting unit and concluded that the fair value of its goodwill exceeded its carrying value. In fiscal year 2011 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 2015, 2014 and 2013.
To calculate fair value of these assets, management relies on estimates and assumptions which by their nature have varying degrees of uncertainty. Management therefore looks for third party transactions 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.