Goodwill and Intangible Assets, Net

12 Months Ended

Jun. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS, NET

Changes in Goodwill for the fiscal years ended June 30, 2017 and 2016 are as follows:



	Investor Communication Solutions			Global Technology and Operations			Total
	(in millions)
Goodwill, gross, at July 1, 2015	$	681.4		$	289.1		$	970.5
Additions	11.1			26.3			37.5
Fair value adjustments	(2.3		)	—			(2.3		)
Foreign currency translation and other	(0.4		)	(5.9		)	(6.3		)
Accumulated impairment losses	—			—			—
Goodwill, net, at June 30, 2016	$	689.7		$	309.6		$	999.3

Goodwill, gross, at June 30, 2016	$	689.7		$	309.6		$	999.3
Additions	135.7			39.8			175.5
Fair value adjustments	—			(0.5		)	(0.5		)
Foreign currency translation and other	(4.4		)	(10.5		)	(14.9		)
Accumulated impairment losses	—			—			—
Goodwill, net, at June 30, 2017	$	821.0		$	338.4		$	1,159.3

Additions for the fiscal year ended June 30, 2017 include $135.7 million, $17.2 million and $22.6 million for the acquisitions of NACC, M&O and MAL, respectively. Additions for the fiscal year ended June 30, 2016 include $11.1 million and $23.3 million for the acquisitions of QED and 4sight Financial, respectively.

Fair value adjustments for fiscal year 2017 primarily represent reductions in goodwill of $1.8 million for 4Sight related to the settlement of post-closing working capital adjustments, partially offset by a $1.2 million increase in the fair value of the contingent consideration liability for 4Sight that resulted from the finalization of the purchase price allocation in fiscal year 2017. Fair value adjustments for fiscal year 2016 represent reductions in goodwill of $0.9 million for WTRIS and $1.4 million for FSCI related to the settlement of post-closing working capital adjustments (see Note 6, “Acquisitions”).

During fiscal years 2017, 2016 and 2015, the Company performed the required impairment tests of Goodwill and determined that there was no impairment. The Company also performs a sensitivity analysis under Step 1 of the goodwill impairment test assuming hypothetical reductions in the fair values of the reporting units. A 10% change in our estimates of projected future operating cash flows, discount rates, or terminal value growth rates, which are the most significant estimates used in our calculations of the fair values of the reporting units, would not result in an impairment of our goodwill.

Intangible assets at cost and accumulated amortization at June 30, 2017 and 2016 are as follows:



	June 30,
	2017							2016
	Original Cost		Accumulated Amortization			Intangible Assets, net		Original Cost		Accumulated Amortization			Intangible Assets, net
	(in millions)
Software licenses	$	124.6	$	(91.1	)	$	33.6	$	110.1	$	(76.7	)	$	33.5
Acquired software technology	106.9		(65.1		)	41.9		91.0		(52.1		)	38.9
Customer contracts and lists	435.3		(128.3		)	307.0		213.9		(86.3		)	127.6
Acquired intellectual property	95.0		(15.0		)	80.0		—		—			—
Other intangibles	38.1		(14.2		)	24.0		23.0		(12.7		)	10.3
	$	800.0	$	(313.6	)	$	486.4	$	438.0	$	(227.8	)	$	210.3

In fiscal years 2017 and 2016, intangible assets and accumulated amortization were reduced by $0.6 million and $1.1 million, respectively, for asset retirements related to fully amortized intangibles.

Other intangibles consist of capitalized internal use software and the following intangible assets acquired in business acquisitions: intellectual property, purchased rights, covenants, patents, and trademarks. All of the intangible assets have finite lives and, as such, are subject to amortization.

The weighted-average remaining useful life of the intangible assets is as follows:



		Weighted-Average Remaining Useful Life (Years)
Software licenses		3.2
Acquired software technology		4.1
Customer contracts and lists		7.9
Acquired intellectual property		4.2
Other intangibles		4.7
Total weighted-average remaining useful life		6.5

Amortization of intangibles for the years ended June 30, 2017, 2016 and 2015 was as follows:



	Years ended June 30,
	2017		2016		2015
	(in millions)
Amortization expense for intangible assets	$	87.7	$	45.8	$	36.6

Estimated remaining amortization expenses of the Company’s existing intangible assets for the next five fiscal years and thereafter are as follows:



Years Ending June 30,	(in millions)
2018	$	93.4
2019	82.3
2020	76.3
2021	69.2
2022	48.7
Thereafter	116.5

- 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.

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