Impairment Charges

9 Months Ended

Mar. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Impairment Charges

NOTE 4. IMPAIRMENT CHARGES

The Company recorded impairment charges of $22.5 million and $32.2 million for the three and nine months ended March 31, 2012, respectively.

On March 13, 2012, Broadridge and its former wholly owned subsidiary, Ridge Clearing and Outsourcing Solutions, Inc., entered into a Restructuring Support Agreement with Penson Worldwide Inc. (“PWI”) and certain of its subsidiaries, which provided for proposed transactions related to the restructuring of Penson’s outstanding indebtedness, including a five-year subordinated note from PWI (the “Seller Note”). As part of PWI’s debt restructuring, Broadridge agreed to cancel the Seller Note in exchange for additional shares of PWI’s common stock, and the Company recorded a $21.4 million charge for the three and nine months ended March 31, 2012, which included $0.8 million of accrued interest on the Seller Note.

The impairment charge included a $10.8 million charge related to the impairment of the Company’s investment in the common stock of PWI. Based on the Company’s review at December 31, 2011 and again at March 31, 2012, factoring in the level of decline in the fair value of the PWI common stock, management determined at December 31, 2011, and again at March 31, 2012, that the market value of the PWI common stock would not equal or exceed the cost basis of our investment within a reasonable period of time. After consideration of the severity and duration of this decline in fair value as well as the reasons for the decline in value, the Company believed that the impairment was “other-than-temporary” and recorded charges of $1.1 million and $10.8 million for the three and nine months ended March 31, 2012.

There were no impairment charges recorded during the three and nine months ended March 31, 2013.