Goodwill And Acquired Intangible Assets

9 Months Ended

Mar. 31, 2012

Goodwill And Acquired Intangible Assets [Abstract]

D. Goodwill and Acquired Intangible Assets

The following table sets forth the changes in the carrying amount of goodwill for the nine months ended March 31, 2012:


	Amounts
Balance at June 30, 2011	$	79,558
Goodwill allocated to KOR		33,449
Goodwill allocated to PDI		19,318

Total Goodwill arising from the KOR acquisition		52,767

Balance at March 31, 2012	$	132,325

In the nine months ended March 31, 2012, there were no triggering events, as defined by FASB ASC Topic 350, Intangibles—Goodwill and Other ("FASB ASC 350"), which required an interim goodwill impairment test. The Company performs its annual goodwill impairment test in the fourth quarter of each fiscal year.

The Company determines its reporting units in accordance with FASB ASC 350, by assessing whether discrete financial information is available and if management regularly reviews the operating results of that component. Following this assessment, the Company determined that its reporting units are the same as its operating segments, ACS and MFS. As of June 30, 2011, ACS was the only reporting unit that had a goodwill balance, and as such, the annual impairment analysis was performed for this reporting unit only. As of March 31, 2012, both ACS and MFS had goodwill balances, as such; the annual impairment analysis will be performed for each reporting unit in the fourth quarter of fiscal year 2012.

Acquired intangible assets consisted of the following:


	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life
March 31, 2012
Customer relationships	$	26,770	$	(8,668	)	$	18,102	6.9 years
Licensing agreements and patents		4,095		(2,206	)		1,889	5.4 years
Completed technologies		5,570		(738	)		4,832	5.3 years
Trademarks		990		(47	)		943	6.0 years
Backlog		800		(488	)		312	2.0 years
Non-compete agreements		500		(347	)		153	5.0 years

	$	38,725	$	(12,494	)	$	26,231

June 30, 2011
Customer relationships	$	18,300	$	(7,530	)	$	10,770	6.7 years
Licensing agreements, trademarks and patents		4,045		(1,622	)		2,423	5.5 years
Completed technologies		2,900		(227	)		2,673	6.0 years
Backlog		800		(188	)		612	2.0 years
Non-compete agreements		500		(276	)		224	5.0 years

	$	26,545	$	(9,843	)	$	16,702

Estimated future amortization expense for acquired intangible assets remaining at March 31, 2012 is as follows:


	Year Ending June 30,
2012	$	1,147
2013		4,826
2014		4,811
2015		4,670
2016		4,185
Thereafter		6,592

Total future amortization expense	$	26,231

The following tables summarize the acquired intangible assets arising as a result of the KOR acquisition. These assets are included in the Company's gross and net carrying amounts as of March 31, 2012.

Preliminary estimated fair value of acquired intangible assets at March 31, 2012 for the KOR acquisition is as follows:


	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life
Customer relationships	$	8,470	$	(297	)	$	8,173		7.2 years
Completed technologies		2,670		(148	)		2,522		4.5 years
Trademark		990		(47	)		943		6.0 years

Total	$	12,130	$	(492	)	$	11,638		6.5 years

- 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.

+ References+ Details