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GOODWILL
 9 Months Ended
Mar. 31, 2018
GOODWILL  
GOODWILL

(4) GOODWILL

The Company’s goodwill balance was $1,735.5 million and $1,840.2 million as of as of March 31, 2018 and June 30, 2017, respectively.

The Company’s reporting units are comprised of its strategic product groups (“SPG” or “SPGs”). Effective January 1, 2017, the Company implemented organizational changes that had an impact on the composition of the Company’s SPGs. The change in structure had the impact of consolidating and/or regrouping existing SPGs, disaggregating the legacy Zayo Canada SPG among the existing SPGs and creating a new Allstream and IP Transit SPG (See Note 14 – Segment Reporting). In connection with the organizational change, goodwill was re-allocated to the Company’s SPGs on a relative fair value basis. The Company completed an assessment immediately prior to and after the organizational change at the SPG level and determined that it is more likely than not that the fair value of the Company’s reporting units is greater than their carrying amounts.       

 

As of March 31, 2018, the Company’s SPGs were comprised of the following: Fiber Solutions, Zayo Wavelength Solutions (“Waves”), Zayo IP Transit Solutions (“IP Transit”), Zayo SONET Solutions (“SONET”), Zayo Ethernet Solutions (“Ethernet”), Wide Area Networks (“WANs”, formerly Enterprise Private and Connectivity), Zayo Cloud Solutions (“Cloud”), Zayo Colocation (“zColo"), Allstream and Other (primarily Zayo Professional Services).

The following reflects the changes in the carrying amount of goodwill during the nine months ended March 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Group

    

As of June 30, 2017

    

Adjustments to Fiscal 2017
Acquisitions

    

Fiscal 2018
Acquisitions

    

Foreign Currency
Translation and Other (1)

    

As of March 31, 2018

 

 

(in millions)

Fiber Solutions

 

$

633.9

 

$

110.0

 

$

11.6

 

$

6.0

 

$

761.5

Waves

 

 

247.4

 

 

(56.1)

 

 

20.8

 

 

3.4

 

 

215.5

Sonet

 

 

52.0

 

 

35.6

 

 

 —

 

 

0.1

 

 

87.7

Ethernet

 

 

359.5

 

 

(249.7)

 

 

0.1

 

 

0.3

 

 

110.2

WANs

 

 

89.5

 

 

89.8

 

 

 —

 

 

0.5

 

 

179.8

zColo

 

 

256.3

 

 

2.2

 

 

 —

 

 

2.2

 

 

260.7

Cloud

 

 

69.5

 

 

(4.2)

 

 

 —

 

 

0.1

 

 

65.4

Allstream

 

 

116.5

 

 

(72.2)

 

 

 —

 

 

(5.2)

 

 

39.1

Other

 

 

15.6

 

 

 —

 

 

 —

 

 

 —

 

 

15.6

Total

 

$

1,840.2

 

$

(144.6)

 

$

32.5

 

$

7.4

 

$

1,735.5

 

(1)

Other includes $5.2 million reported as assets held for sale in the Allstream segment. See Note 3—Acquisitions and Dispositions.