Goodwill and Intangible Assets, Net

12 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS, NET

Changes in Goodwill for the fiscal years ended June 30, 2020 and 2019 are as follows:


	Investor Communication Solutions		Global Technology and Operations		Total
	(in millions)
Goodwill, gross, at July 1, 2018	$	884.4	$	370.5	$	1,254.9
Transfers (a)	(2.8)		2.8		—
Additions	27.3		220.4		247.7
Fair value adjustments (b)	7.4		—		7.4
Foreign currency translation and other	(3.2)		(6.8)		(10.0)
Accumulated impairment losses	—		—		—
Goodwill, net, at June 30, 2019	$	913.1	$	586.9	$	1,500.0

Goodwill, gross, at June 30, 2019	$	913.1	$	586.9	$	1,500.0
Additions	131.6		69.9		201.5
Foreign currency translation and other	(5.1)		(13.0)		(18.1)
Fair value adjustments (b)	(0.2)		(8.8)		(9.0)
Accumulated impairment losses	—		—		—
Goodwill, net, at June 30, 2020	$	1,039.5	$	635.0	$	1,674.5

(a) In connection with an organizational change made in the first quarter of fiscal year 2020, in order to further align and enhance our portfolio of services, the results for the Company's wealth management Advisor Solutions services that were previously reported in our Investor Communication Solutions reportable segment are now reported within the Global Technology and Operations reportable segment. As a result, $2.8 million of goodwill was reclassified from the ICS segment to the GTO segment based on a relative fair value analysis.

(b) Fair value adjustments includes adjustments to goodwill as part of finalization of the purchase price allocations.

Additions for the fiscal year ended June 30, 2020 include $17.6 million, $84.4 million, $44.2 million and $39.1 million for the acquisitions of Shadow Financial, Fi360, ClearStructure and FundsLibrary, respectively. Additions for the fiscal year ended June 30, 2019 include $31.1 million, $181.6 million and $27.1 million for the acquisitions of Rockall, RPM and TD Ameritrade, respectively.

During fiscal years 2020, 2019 and 2018, 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, 2020 and 2019 are as follows:


	June 30,
	2020										2019
	Original Cost		Accumulated Amortization		Intangible Assets, net		Original Cost		Accumulated Amortization		Intangible Assets, net
	(in millions)
Software licenses	$	137.9	$	(115.7)	$	22.2	$	125.8	$	(101.7)	$	24.1
Acquired software technology	196.8		(109.7)		87.1		164.7		(85.5)		79.3
Customer contracts and lists	644.5		(274.2)		370.3		549.6		(207.4)		342.1
Acquired intellectual property	136.6		(90.9)		45.7		135.0		(63.8)		71.2
Other intangibles	92.3		(34.0)		58.3		63.6		(24.1)		39.5
	$	1,208.1	$	(624.4)	$	583.8	$	1,038.7	$	(482.5)	$	556.2

In fiscal year 2020 there were no asset retirements related to fully amortized intangibles. In fiscal year 2019, intangible assets and accumulated amortization were reduced by $0.2 million 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, 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)
Acquired software technology						2.8
Software licenses						2.2
Customer contracts and lists						5.5
Acquired intellectual property						1.9
Other intangibles						4.2
Total weighted-average remaining useful life						4.5

Amortization of intangibles for the years ended June 30, 2020, 2019 and 2018 was as follows:


	Years ended June 30,
	2020		2019		2018
	(in millions)
Amortization expense for intangible assets	$	146.1	$	106.8	$	100.2

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)
2021	$	150.5
2022	125.2
2023	103.3
2024	84.9
2025	65.0
Thereafter	54.8