Goodwill and Other Intangible Assets

9 Months Ended

Mar. 31, 2020

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 March 31, 2020, the carrying value of goodwill for all of our reporting units was $205.2 million.

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



	As of March 31, 2020
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value		Weighted Average Remaining Life
	(in thousands)							(in years)
Amortized intangible assets:
Customer related	$	218,650	$	(153,476	)	$	65,174	7.7
Core technology	133,038		(95,444		)	37,594		7.0
Other intangible assets	22,025		(19,656		)	2,369		4.6
Capitalized software development costs	25,410		(12,960		)	12,450		2.3
Software ⁽¹⁾	80,609		(42,865		)	37,744		3.8
Total	$	479,732	$	(324,401	)	$	155,331
Unamortized intangible assets:
Goodwill						205,206
Total intangible assets						$	360,537



	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

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⁽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 March 31, 2020, is as follows:



	Acquired Intangible Assets		Capitalized Software Development Costs		Software
	(in thousands)
Remaining 2020	$	5,078	$	1,021	$	3,059
2021	18,937		4,083		9,312
2022	16,848		4,083		7,432
2023	15,473		1,239		5,533
2024	13,707		537		4,018
2025 and thereafter	35,094		50		2,291

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 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⁾	—		65		—			—		65
Impact of foreign currency translation	296		—		(1,256		)	—		(960		)
Balance at March 31, 2020 ⁽¹⁾	$	90,603	$	39,516	$	66,893		$	8,194	$	205,206

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


⁽²⁾	The measurement period adjustment 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. Given the particular challenge of COVID-19, we performed additional review procedures over our goodwill and intangible assets as of March 31, 2020 and concluded that there were not indicators that suggested that it was more likely than not that these assets were impaired as of that date. Any material adverse change to our business results would increase the risk of impairment to our goodwill and other intangible assets and any such impairment charge would likely be material.