Acquisition And Disposal Of Controlling Interest In DNI (Tables)

9 Months Ended

Mar. 31, 2019

Business Acquisition [Line Items]

Impact Of Deconsolidation Of DNI And Calculation Of Net Loss Recognized On Deconsolidation

								Equity method
								investment as of
								March 31, 2019
								(Refer also Note 8)
								8%
								retained
								interest						Attributed
								sold in			30%			to non-
					17%			May			retained			controlling
		Total			sold			2019			interest			interest
Fair value of consideration received	$	27,626		$	27,626		$	-		$	-		$	-
Fair value of retained interest of 30% in DNI(1)		74,195			-			14,849			59,346			-
Carrying value of non-controlling interest		88,934			-			-			-			88,934
Subtotal		190,755			27,626			14,849			59,346			88,934
Less: carrying value of DNI, comprising		195,895			34,311			14,540			58,110			88,934
Cash and cash equivalents		2,114			354			158			633			969
Accounts receivable, net		24,577			4,116			1,841			7,358			11,262
Finance loans receivable, net		1,030			173			77			308			472
Inventory		893			149			66			268			410
Property, plant and equipment, net		1,265			212			95			379			579
Equity-accounted investments (Note 8)		242			41			19			72			110
Goodwill (Note 9)		113,003			18,924			8,466			33,834			51,779
Intangible assets, net		80,769			13,526			6,051			24,183			37,009
Deferred income taxes		28			5			2			8			13
Other long-term assets		26,553			4,447			1,989			7,950			12,167
Accounts payable		(5,186	)		(868	)		(389	)		(1,553	)		(2,376	)
Other payables(2)		(16,484	)		(2,760	)		(1,235	)		(4,936	)		(7,553	)
Income taxes payable		(2,482	)		(416	)		(186	)		(743	)		(1,137	)
Deferred income taxes		(22,083	)		(3,698	)		(1,654	)		(6,612	)		(10,119	)
Long-term debt (Note 11)		(10,150	)		(1,700	)		(760	)		(3,039	)		(4,651	)
Released from accumulated other comprehensive
income – foreign currency translation reserve (Note 13)		1,806			1,806			-			-			-
Loss recognized on disposal, before tax, comprising		(5,140	)		(6,685	)		309			1,236			-
Related to sale of 17% of DNI		(6,685	)		(6,685	)		-			-
Related to fair value adjustment of retained interest
in 38% of DNI		1,545			-			309			1,236
Taxes related to gain recognized on disposal(3)		-			505			(3,836	)		3,331
Loss recognized on disposal, after tax	$	(5,140	)	$	(7,190	)	$	4,145		$	(2,095	)

(1) The fair value of the retained interest in 38% of DNI of $74.2 million ($14.9 million plus $59.3 million has been calculated using the implied fair value of DNI pursuant to the RMB Disposal and has been calculated as ZAR 215.0 million divided by 7. 605235% multiplied by 38%, translated to dollars at the March 31, 2019, rate of exchange. The fair value of the retained interest in DNI is included in equity-accounted investment on the unaudited condensed consolidated balance sheet as of March 31, 2019.

(2) Other payables include a short-term loan of ZAR 60.5 million ($4.2 million, translated at exchange rates applicable as of March 31, 2019) due to the Company and included in accounts receivable, net on the Company's unaudited condensed consolidated balance sheet as of March 31, 2019. The loan is repayable in full on or before June 30, 2019. Interest on the loan is charged at the South African prime rate.

(3) Amounts presented are net of a valuation allowance provided. The disposal of DNI results in a capital loss for tax purposes of approximately $1.5 million and the Company has provided a valuation allowance of $1.5 million against this capital loss because it does not have any capital gains to offset against this amount. On an individual basis, the transaction to dispose of 17% of DNI resulted in a capital gain of $0.5 million and the re-measurement of the retained 38% interest has resulted in a capital loss of $2.0 million ($5.3 million (8% transaction) less $3.3 million (30% transaction)). The valuation allowance of $1.5 million has been provided against the $5.3 million, for a net amount presented in the table above of $3.8 million ($5.3 million less $1.5 million).

Impact Of Deconsolidation Of DNI On Statement Of Operations And Statement Of Cash Flows

	DNI
		Three months ended					Nine months ended
		March 31,					March 31,
		2019			2018		2019			2018
Unaudited condensed consolidated statement of operations
Discontinued:
Revenue	$	17,842		$	-	$	56,337		$	-
Cost of goods sold, IT processing, servicing and support		7,502			-		27,667			-
Selling, general and administration		1,935			-		4,295			-
Depreciation and amortization		2,427			-		8,026			-
Impairment loss		5,305			-		5,305			-
Operating income		673			-		11,044			-
Interest income		208			-		707			-
Interest expense		396			-		812			-
Net income before tax		(4,655	)		-		5,799			-
Income tax expense		146			-		3,124			-
Net income before earnings from equity-accounted investments		(4,801	)		-		2,675			-
Earnings from equity-accounted investments(1)(2)	$	73		$	3,291	$	15		$	5,202
Unaudited condensed consolidated statement of cash flows
Discontinued:
Total net cash (used in) provided by operating activities(3)	($	393	)	$	-	$	6,635		$	1,765
Total net cash (used in) provided by investing activities	($	319	)	$	-	($	516	)	$	-

     (1) Earnings from equity-accounted investments for the three and nine months ended March 31, 2019, represents earnings attributed to equity-accounted investment owned by DNI and included in the Company's results as a result of the consolidation of DNI.

     (2) Earnings from equity-accounted investments for the three and nine months ended March 31, 2018, represents DNI earnings (net of amortization of acquired intangibles and related deferred tax) attributed to the Company as a result of the Company using the equity method to account for its investment in DNI during the period.

     (3) Total net cash (used in) provided by operating activities for the three and nine months ended March 31, 2018, represent dividends received from DNI during these periods.

DNI [Member]

Business Acquisition [Line Items]

Schedule Of Purchase Price Allocation Translated At Applicable Foreign Exchange Rate

		DNI – discontinued operation
		as of June 30, 2018
		Initial						Amended
		DNI PPA			Amendment			DNI PPA
Current assets of discontinued operation:	$	22,482		$	-		$	22,482
Cash and cash equivalents		2,979			-			2,979
Accounts receivable (Note 4)		16,235			-			16,235
Finance loans receivable (Note 4)		742			-			742
Inventory (Note 5)		2,526			-			2,526
Long-term assets of discontinued operation:		241,729			(1,951	)		239,778
Property, plant and equipment		1,317			-			1,317
Equity-accounted investment (Note 8)		339			-			339
Goodwill (Note 9)		114,161			5,017			119,178
Intangible assets (Note 9)		104,003			(6,968	)		97,035
Deferred tax assets		561			-			561
Other long-term assets (Note 8)		21,348			-			21,348
Current liabilities of discontinued operation:		(20,914	)		-			(20,914	)
Accounts payables		(13,949	)		-			(13,949	)
Other payables		(6,349	)		-			(6,349	)
Current portion of long-term borrowings (Note 11)		(616	)		-			(616	)
Long-term liabilities of discontinued operation:		(37,412	)		1,951			(35,461	)
Other long-term liabilities		(8,291	)		-			(8,291	)
Deferred tax liabilities		(29,121	)		1,951			(27,170	)
Fair value of assets and liabilities on acquisition	$	205,885		$	-		$	205,885

DNI [Member] | Customer Relationships [Member]

Business Acquisition [Line Items]

Impact Of Reversal On Condensed Consolidated Statement Of Operations

		Three and
		nine months
		ended
		March 31,
		2019
Reversal of intangible asset amortization - decrease depreciation and amortization	$	506
Deferred tax impact related to reversal of intangible asset amortization - decrease income tax benefit		142
Increase in non-controlling interest	$	164