XML 57 R11.htm IDEA: XBRL DOCUMENT v2.4.0.8
Goodwill
3 Months Ended
Sep. 30, 2014
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill

(4) GOODWILL

The Company’s goodwill balance was $874.3 and $845.3 as of September 30, 2014 and June 30, 2014, respectively. Additions to goodwill during the three months ended September 30, 2014 relate to the acquisitions of AtlantaNAP and Neo (see Note 2 - Acquisitions).

The Company’s reporting units are comprised of its strategic product groups (“SPGs”): Zayo Dark Fiber (“Dark Fiber”), Zayo Wavelength Services (“Waves”), Zayo SONET Services (“SONET”), Zayo Ethernet Services (“Ethernet”), Zayo IP Services (“IP”), Zayo Mobile Infrastructure Group (“MIG”), Zayo Colocation (“zColo"), and Other (includes Zayo Professional Services ("ZPS") and Zayo France). The following rollforward reflects the allocation of goodwill acquired in the Company’s Fiscal 2014 and 2015 acquisitions to the Company’s reporting units (in millions):

 

 

 

Dark Fiber

 

 

Waves

 

 

SONET

 

 

Ethernet

 

 

IP

 

 

MIG

 

 

zColo

 

 

Other

 

 

Total

 

As of June 30, 2014

 

$

269.9

 

 

$

270.0

 

 

$

50.3

 

 

$

96.7

 

 

$

80.4

 

 

$

43.7

 

 

$

19.6

 

 

$

14.7

 

 

$

845.3

 

Additions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AtlantaNAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13.6

 

 

 

 

 

 

13.6

 

Neo

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23.2

 

 

 

23.2

 

Foreign currency translation and other

 

 

(4.4

)

 

 

(3.4

)

 

 

 

 

 

(0.1

)

 

 

(0.1

)

 

 

 

 

 

0.2

 

 

 

 

 

 

(7.8

)

As of September 30, 2014

 

$

265.5

 

 

$

266.6

 

 

$

50.3

 

 

$

96.6

 

 

$

80.3

 

 

$

43.7

 

 

$

33.4

 

 

$

37.9

 

 

$

874.3

 

 

During the three months ended September 30, 2014, goodwill decreased by $6.7 due to foreign currency movements impacting goodwill allocated to the U.K. and France operations. In addition, the Company recorded purchase accounting adjustments to acquisitions closed during the past twelve months, which resulted in a net decrease to goodwill of $1.1 during the first quarter of Fiscal 2015. The Company did not recast the previously reported consolidated balance sheet as of June 30, 2014 and statement of operations for the year ended June 30, 2014 due to the immaterial effect of these adjustments.

In addition, the Company has recast goodwill reported in the consolidated balance sheet as of June 30, 2014 in connection with the Company’s final valuation of property, plant and equipment and intangible assets and associated deferred taxes impact for the Access and Fiberlink acquisitions, which resulted in a net decrease to goodwill of $15.8 (see Note 2 - Acquisitions).

Previously reported provisional allocations of goodwill to the Waves and Dark Fiber reporting units have been adjusted as of June 30, 2014 in relation to the Geo acquisition, with a corresponding increase in goodwill allocated to the Waves SPG of $27.5 and an offsetting decrease in goodwill allocated to the Dark Fiber reporting unit.