v3.19.2
Goodwill and Intangible Assets, Net
 12 Months Ended
Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net
GOODWILL AND INTANGIBLE ASSETS, NET
Changes in Goodwill for the fiscal years ended June 30, 2019 and 2018 are as follows:
 
 
Investor
Communication
Solutions
 
Global
Technology and
Operations
 
Total
 
 
(in millions)
Goodwill, gross, at July 1, 2017
 
$
821.0

 
$
338.4

 
$
1,159.3

Transfers (a)
 
(38.7
)
 
38.7

 
—

Additions
 
88.2

 
—

 
88.2

Fair value adjustments (b)
 
—

 
—

 
—

Foreign currency translation and other
 
13.9

 
(6.5
)
 
7.4

Accumulated impairment losses
 
—

 
—

 
—

Goodwill, net, at June 30, 2018
 
$
884.4

 
$
370.5

 
$
1,254.9

 
 
 
 
 
 
 
Goodwill, gross, at June 30, 2018
 
$
884.4

 
$
370.5

 
$
1,254.9

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
 
$
915.9

 
$
584.2

 
$
1,500.0


(a) In connection with an organizational change made in the second quarter of fiscal year 2018, in order to further align and enhance our portfolio of services, certain discrete 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, $38.7 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 the finalization of purchase price allocation related to the ActivePath acquisition.
Additions for the fiscal year ended June 30, 2019 include $28.9 million, $191.5 million and $27.3 million for the acquisitions of Rockall, RPM and TD Ameritrade, respectively. Additions for the fiscal year ended June 30, 2018 include $18.5 million, $28.7 million and $29.2 million for the acquisitions of Summit, ActivePath and FundAssist, respectively.
During fiscal years 2019, 2018 and 2017, 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, 2019 and 2018 are as follows:
 
 
June 30,
 
 
2019
 
2018
 
 
Original
Cost
 
Accumulated
Amortization
 
Intangible
Assets, net
 
Original
Cost
 
Accumulated
Amortization
 
Intangible
Assets, net
 
 
(in millions)
Software licenses
 
$
125.8

 
$
(101.7
)
 
$
24.1

 
$
117.5

 
$
(87.5
)
 
$
30.0

Acquired software technology
 
164.7

 
(85.5
)
 
79.3

 
117.8

 
(73.0
)
 
44.8

Customer contracts and lists
 
549.6

 
(207.4
)
 
342.1

 
453.8

 
(162.1
)
 
291.7

Acquired intellectual property
 
135.0

 
(63.8
)
 
71.2

 
135.0

 
(36.9
)
 
98.1

Other intangibles
 
63.6

 
(24.1
)
 
39.5

 
47.7

 
(18.2
)
 
29.5

 
 
$
1,038.7

 
$
(482.5
)
 
$
556.2

 
$
871.8

 
$
(377.7
)
 
$
494.1


In fiscal years 2019 and 2018, intangible assets and accumulated amortization were reduced by $0.2 million and $36.7 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, 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
 
4.0
Software licenses
 
2.4
Customer contracts and lists
 
6.3
Acquired intellectual property
 
2.8
Other intangibles
 
4.3
     Total weighted-average remaining useful life
 
5.2

Amortization of intangibles for the years ended June 30, 2019, 2018 and 2017 was as follows:
 
 
Years ended June 30,
 
 
2019
 
2018
 
2017
 
 
(in millions)
Amortization expense for intangible assets
 
$
106.8

 
$
100.2

 
$
87.7


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)
2020
 
$
128.2

2021
 
118.5

2022
 
95.1

2023
 
76.0

2024
 
61.2

Thereafter
 
77.2