Goodwill and Intangible Assets, Net

GOODWILL AND INTANGIBLE ASSETS, NET

Changes in Goodwill for the fiscal years ended June 30, 2015 and 2014 are as follows:



	Investor Communication Solutions			Global Technology and Operations			Total
	($ in millions)
Goodwill, gross, at July 1, 2013 (1)	$	513.0		$	265.4		$	778.4
Additions	70.1			—			70.1
Foreign currency translation and other	—			7.6			7.6
Accumulated impairment losses	—			—			—
Goodwill, net, at June 30, 2014	$	583.1		$	273.0		$	856.1
Goodwill, gross, at June 30, 2014	$	583.1		$	273.0		$	856.1
Additions	98.5			25.5			124.0
Foreign currency translation and other	(0.2		)	(9.4		)	(9.6		)
Accumulated impairment losses	—			—			—
Goodwill, net, at June 30, 2015	$	681.4		$	289.1		$	970.5

(1) Includes $10.6 million of Goodwill transferred from Global Technology and Operations to Investor Communication Solutions during the fiscal year ended June 30, 2015 related to the organizational change discussed further in Note 17, “Financial Data by Segment”.

Additions for the fiscal year ended June 30, 2015 include $25.5 million, $20.6 million, $39.1 million, and $38.8 million for the acquisitions of TwoFour Systems, Direxxis, the trade processing business of WTRIS, and FSCI, respectively. Additions for the fiscal year ended June 30, 2014 include $41.1 million and $29.0 million for the Emerald and Bonaire acquisitions, respectively (see Note 5, “Acquisitions”).

During fiscal years 2015, 2014 and 2013, the Company performed the required impairment tests of Goodwill under ASC No. 350 and determined that there was no impairment.

Intangible assets at cost and accumulated amortization at June 30, 2015 and 2014 are as follows:



	June 30,
	2015							2014
	Original Cost		Accumulated Amortization			Intangible Assets, net		Original Cost		Accumulated Amortization			Intangible Assets, net
	($ in millions)
Software licenses	$	89.7	$	(63.3	)	$	26.4	$	79.7	$	(58.6	)	$	21.1
Acquired software technology	74.4		(42.9		)	31.5		60.1		(35.6		)	24.5
Customer contracts and lists	196.8		(65.9		)	130.9		127.6		(51.8		)	75.8
Other intangibles	18.5		(11.6		)	6.9		19.8		(11.2		)	8.6
	$	379.4	$	(183.7	)	$	195.7	$	287.2	$	(157.2	)	$	130.0

In fiscal years 2015 and 2014, intangible assets and accumulated amortization were each reduced by $7.0 million and $4.7 million, respectively of asset retirements related to fully amortized intangibles.

Other intangibles consist primarily of purchased rights, covenants, patents, and trademarks (acquired directly or through acquisitions). 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 8.7 years (6.3 years for software licenses and 6.7 years for acquired software technology, 9.9 years for customer contracts and lists and 5.0 years for other intangibles). Amortization of intangibles totaled $36.6 million, $33.9 million, and $34.2 million for fiscal years 2015, 2014, and 2013, respectively. 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)
2016	$	42.6
2017	35.5
2018	29.2
2019	21.6
2020	19.1
Thereafter	47.7

- 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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