Goodwill And Intangible Assets, Net

3 Months Ended

Sep. 30, 2016

Goodwill And Intangible Assets, Net [Abstract]

6. Goodwill and intangible assets, net

Goodwill

Summarized below is the movement in the carrying value of goodwill for the three months ended September 30, 2016:

				Accumulated		Carrying
		Gross value		impairment		value
Balance as of June 30, 2016	$	179,478	$	-	$	179,478
Foreign currency adjustment⁽¹⁾		8,397		-		8,397
Balance as of September 30, 2016	$	187,875	$	-	$	187,875

(1) Represents the effects of the fluctuations between the South African rand, Euro and the Korean won, and the U.S. dollar on the carrying value.

Goodwill has been allocated to the Company's reportable segments as follows:

		South				Financial
		African		International		inclusion and
		transaction		transaction		applied		Carrying
		processing		processing		technologies		value
Balance as of June 30, 2016	$	20,425	$	136,185	$	22,868	$	179,478
Foreign currency adjustment⁽¹⁾		1,357		5,907		1,133		8,397
Balance as of September 30, 2016	$	21,782	$	142,092	$	24,001	$	187,875

(1) Represents the effects of the fluctuations between the South African rand, Euro and the Korean won, and the U.S. dollar on the carrying value.

Intangible assets, net

Carrying value and amortization of intangible assets

Summarized below is the carrying value and accumulated amortization of the intangible assets as of September 30, 2016 and June 30, 2016:


	As of September 30, 2016							As of June 30, 2016
		Gross					Net		Gross					Net
		carrying		Accumulated			carrying		carrying		Accumulated			carrying
		value		amortization			value		value		amortization			value
Finite-lived intangible assets:
Customer relationships	$	97,992	$	(55,956	)	$	42,036	$	94,529	$	(51,557	)	$	42,972
Software and unpatented
technology		32,502		(30,009	)		2,493		31,452		(28,791	)		2,661
FTS patent		2,764		(2,764	)		-		2,592		(2,592	)		-
Exclusive licenses		4,506		(4,506	)		-		4,506		(4,506	)		-
Trademarks		6,986		(3,904	)		3,082		6,685		(3,762	)		2,923
Total finite-lived intangible
assets	$	144,750	$	(97,139	)	$	47,611	$	139,764	$	(91,208	)	$	48,556

Aggregate amortization expense on the finite-lived intangible assets for the three months ended September 30, 2016 and 2015, was approximately $2.9 million and $3.3 million, respectively.

Future estimated annual amortization expense for the next five fiscal years and thereafter, assuming exchange rates that prevailed on September 30, 2016, is presented in the table below. Actual amortization expense in future periods could differ from this estimate as a result of acquisitions, changes in useful lives, exchange rate fluctuations and other relevant factors.

2017	$	12,607
2018		11,692
2019		11,061
2020		10,352
2021		4,453
Thereafter	$	368

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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