Goodwill and Other Intangible Assets

3 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and acquired intangible assets are initially recorded at fair value and tested periodically for impairment. We perform an impairment test of goodwill during the fourth quarter of each fiscal year or sooner, if indicators of potential impairment arise.

At September 30, 2019, the carrying value of goodwill for all of our reporting units was $204.4 million.

The following tables set forth the information for intangible assets subject to amortization and for intangible assets not subject to amortization.



	As of September 30, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value		Weighted Average Remaining Life
	(in thousands)							(in years)
Amortized intangible assets:
Customer related	$	216,921	$	(146,367	)	$	70,554	8.1
Core technology	130,977		(91,160		)	39,817		7.3
Other intangible assets	21,827		(19,084		)	2,743		4.9
Capitalized software development costs	24,065		(10,971		)	13,094		2.8
Software ⁽¹⁾	71,954		(37,413		)	34,541		4.0
Total	$	465,744	$	(304,995	)	$	160,749
Unamortized intangible assets:
Goodwill						204,396
Total intangible assets						$	365,145



	As of June 30, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value		Weighted Average Remaining Life
	(in thousands)							(in years)
Amortized intangible assets:
Customer related	$	219,893	$	(145,144	)	$	74,749	8.5
Core technology	130,226		(90,017		)	40,209		7.4
Other intangible assets	25,712		(19,030		)	6,682		5.0
Capitalized software development costs	23,213		(10,006		)	13,207		3.0
Software ⁽¹⁾	72,018		(38,516		)	33,502		4.2
Total	$	471,062	$	(302,713	)	$	168,349
Unamortized intangible assets:
Goodwill						206,101
Total intangible assets						$	374,450

——————


⁽¹⁾	Software includes purchased software and software developed for internal use.

Estimated amortization expense for the remainder of fiscal year 2020 and subsequent fiscal years for acquired intangible assets, capitalized software development costs and software, in each case that have been placed in service as of September 30, 2019, is as follows:



	Acquired Intangible Assets		Capitalized Software Development Costs		Software
	(in thousands)
Remaining 2020	$	14,862	$	2,915	$	8,111
2021	18,493		3,887		7,568
2022	16,588		3,887		5,755
2023	15,179		1,033		3,875
2024	13,521		376		2,413
2025 and thereafter	34,471		—		1,548

Each period, for capitalized software development costs, we evaluate whether amortization expense using a ratio of revenue in the period to total expected revenue over the product’s expected useful life would result in greater amortization than as calculated under a straight-line methodology and, if that were to occur, amortization in that period would be accelerated accordingly.

The following table represents a rollforward of our goodwill balances, by reportable segment:



	Cloud Solutions			Banking Solutions		Payments and Transactional Documents			Other		Total
	(in thousands)
Balance at June 30, 2019 ⁽¹⁾	$	90,307		$	39,451	$	68,149		$	8,194	$	206,101
Measurement period adjustment ⁽²⁾	—			1,136		—			—		1,136
Impact of foreign currency translation	(1,296		)	—		(1,545		)	—		(2,841		)
Balance at September 30, 2019 ⁽¹⁾	$	89,011		$	40,587	$	66,604		$	8,194	$	204,396

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⁽¹⁾	Other goodwill balance is net of $7.5 million accumulated impairment losses, recorded previously.


⁽²⁾	The measurement period adjustment during the three months ended September 30, 2019 relates to our BankSight acquisition. See Note 5 Business and Asset Acquisitions.

There can be no assurance that there will not be impairment charges in future periods as a result of future impairment reviews. To the extent that future impairment charges occur, it would likely have a material impact on our financial results.