Goodwill and Other Intangible Assets

12 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

We performed our annual goodwill impairment test during the fourth quarter of fiscal years 2020, 2019 and 2018. Based on these reviews, we concluded that there was no goodwill impairment.

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. At June 30, 2020, the carrying value of goodwill for all of our reporting units was $205.7 million.

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


	As of June 30, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Weighted Average Remaining Life
	(in thousands)							(in years)
Amortized intangible assets:
Customer related	$	219,305	$	(157,008)	$	62,297	7.5
Core technology	135,720		(97,431)		38,289		7.2
Other intangible assets	22,099		(19,927)		2,172		4.8
Capitalized software development costs	26,222		(14,047)		12,175		2.9
Software ⁽¹⁾	84,493		(45,315)		39,178		3.8
Total	$	487,839	$	(333,728)	$	154,111
Unamortized intangible assets:
Goodwill					205,713
Total intangible assets					$	359,824


	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 fiscal year 2021 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 June 30, 2020, is as follows:


	Acquired Intangible Assets		Capitalized Software Development Costs		Software
	(in thousands)
2021	$	19,492	$	4,415	$	10,587
2022	17,389		4,415		8,525
2023	16,012		1,571		6,597
2024	14,241		858		4,985
2025	11,843		294		2,229
2026 and thereafter	23,781		—		1,011

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, 2018 ⁽¹⁾	$	90,270	$	35,880	$	65,680	$	8,194	$	200,024
Goodwill acquired during the period	—		3,571		4,391		—		7,962
Impact of foreign currency translation	37		—		(1,922)		—		(1,885)
Balance at June 30, 2019 ⁽¹⁾	$	90,307	$	39,451	$	68,149	$	8,194	$	206,101
Goodwill acquired during the period ⁽²⁾	—		65		—		—		65
Goodwill reclassified as a result of segment reorganization	26,261		—		(26,261)		—		—
Impact of foreign currency translation	925		—		(1,378)		—		(453)
Balance at June 30, 2020 ⁽¹⁾	$	117,493	$	39,516	$	40,510	$	8,194	$	205,713

——————

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

(2) Reflects the reallocation of amounts to Goodwill in the final purchase price allocation of BankSight.