Quarterly report pursuant to Section 13 or 15(d)

Note 3 - Goodwill, Customer Relationships and Other Intangible Assets

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Note 3 - Goodwill, Customer Relationships and Other Intangible Assets
6 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]
Note
3
– Goodwill
, Customer Relationships
and Other Intangible Assets
 
Goodwill:
Goodwill represents the excess of the purchase price over the fair value of net identifiable assets acquired in business combinations. For the purpose of presenting and measuring for the impairment of goodwill, the Company has
two
reporting units:
one
that produces and markets infant and toddler bedding, blankets and accessories and another that produces and markets infant and toddler bibs, bath, developmental toys, feeding, baby care and disposable products. The goodwill of the reporting units of the Company as of
September 30, 2018
and
April 1, 2018
amounted to
$30.0
million, which is reflected in the accompanying condensed consolidated balance sheets net of accumulated impairment charges of
$22.9
million, for a net reported balance of
$7.1
million.
 
The Company measures for impairment the goodwill within its reporting units annually as of the
first
day of the Company’s fiscal year. An additional interim measurement for impairment is performed during the year whenever an event or change in circumstances occurs that suggests that the fair value of either of the reporting units of the Company has more likely than
not
(defined as having a likelihood of greater than
50%
) fallen below its carrying value. The annual or interim measurement for impairment is performed by
first
assessing qualitative factors to determine whether it is more likely than
not
that the fair value of a reporting unit is less than its carrying amount. If such qualitative factors so indicate, then the measurement for impairment is continued by calculating an estimate of the fair value of each reporting unit and comparing the estimated fair value to the carrying value of the reporting unit. If the carrying value exceeds the estimated fair value of the reporting unit, then an impairment charge is calculated as the difference between the carrying value of the reporting unit and its estimated fair value,
not
to exceed the goodwill of the reporting unit. On
April 2, 2018,
the Company performed the annual measurement for impairment of the goodwill of its reporting units and concluded that the estimated fair value of each of the Company’s reporting units exceeded their carrying values, and thus the goodwill of the Company’s reporting units was
not
impaired as of that date.
 
Other Intangible Assets:
Other intangible assets as of
September 30, 2018
and
April 1, 2018
consisted primarily of the fair value of identifiable assets acquired in business combinations other than tangible assets and goodwill. The gross amount and accumulated amortization of the Company’s other intangible assets as of
September 30, 2018
and
April 1, 2018,
the amortization expense for the
three
and
six
-month periods ended
September 30, 2018
and
October 1, 2017
and the classification of such amortization expense within the accompanying unaudited condensed consolidated statements of income are as follows (in thousands):
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization Expense
 
   
Gross Amount
   
Accumulated Amortization
   
Three-Month Periods Ended
   
Six-Month Periods Ended
 
   
September 30,
   
April 1,
   
September 30,
   
April 1,
   
September 30,
   
October 1,
   
September 30,
   
October 1,
 
   
2018
   
2018
   
2018
   
2018
   
2018
   
2017
   
2018
   
2017
 
Tradename and trademarks
  $
3,667
    $
3,667
    $
1,379
    $
1,270
    $
61
    $
54
    $
109
    $
88
 
Developed technology
   
1,100
     
1,100
     
128
     
73
     
28
     
18
     
55
     
18
 
Non-compete covenants
   
458
     
458
     
161
     
122
     
19
     
13
     
39
     
15
 
Patents
   
1,601
     
1,601
     
727
     
673
     
27
     
27
     
54
     
54
 
Customer relationships
   
7,374
     
7,374
     
4,947
     
4,790
     
79
     
128
     
157
     
254
 
Total other intangible assets
  $
14,200
    $
14,200
    $
7,342
    $
6,928
    $
214
    $
240
    $
414
    $
429
 
                                                                 
Classification within the accompanying unaudited condensed consolidated statements of income:
     
 
     
 
     
 
     
 
 
Cost of products sold
   
 
     
 
     
 
     
 
    $
1
    $
1
    $
3
    $
3
 
Marketing and administrative expenses
     
 
     
 
     
 
     
213
     
239
     
411
     
426
 
Total amortization expense
     
 
     
 
     
 
    $
214
    $
240
    $
414
    $
429