Goodwill and Intangible Assets

9 Months Ended

Mar. 31, 2015

3. Goodwill and Intangible Assets

The changes in the carrying value of goodwill for the nine month period ended March 31, 2015 are as follows (in thousands):

	Security			Healthcare			Optoelectronics and Manufacturing			Consolidated
Balance as of June 30, 2014	$	29,507		$	37,237		$	25,863		$	92,607
Goodwill acquired or adjusted during the period	957			6,210			37			7,204
Foreign currency translation adjustment	(818		)	(1,352		)	(929		)	(3,099		)
Balance as of March 31, 2015	$	29,646		$	42,095		$	24,971		$	96,712

Intangible assets consisted of the following (in thousands):

		June 30, 2014						March 31, 2015
	Weighted Average Lives	Gross Carrying Value		Accumulated Amortization		Intangibles Net		Gross Carrying Value		Accumulated Amortization		Intangibles Net
Amortizable assets:
Software development costs	9 years	$	21,165	$	6,716	$	14,449	$	23,891	$	7,269	$	16,622
Patents	17 years	6,566		765		5,801		7,456		916		6,540
Developed and core technology	11 years	20,597		13,709		6,888		23,343		14,497		8,846
Customer relationships/ backlog	7 years	11,419		7,011		4,408		10,076		4,664		5,412
Total amortizable assets		59,747		28,201		31,546		64,766		27,346		37,420
Non-amortizable assets - Trademarks		12,069		—		12,069		12,776		—		12,776
Total intangible assets		$	71,816	$	28,201	$	43,615	$	77,542	$	27,346	$	50,196

Amortization expense related to intangible assets was $1.0 million and $0.8 million for the three months ended March 31, 2014 and 2015, respectively. For the nine months ended March 31, 2014 and 2015, amortization expense was $3.5 million and $2.7 million, respectively. At March 31, 2015, the estimated future amortization expense was as follows (in thousands):

Fiscal Years
2015 (remaining 3 months)	$	944
2016	4,290
2017	4,642
2018	4,824
2019	3,838
2020	3,394
2021 and thereafter, including assets that have not yet begun to be amortized	15,488
Total	$	37,420

Software development costs for software products incurred before establishing technological feasibility are charged to operations. Software development costs incurred after establishing technological feasibility are capitalized on a product by product basis until the product is available for general release to customers at which time amortization begins. Annual amortization, charged to cost of goods sold, is the amount computed using the ratio that current revenues for a product bear to the total current and anticipated future revenues for that product. In the event that future revenues are not estimable, such costs are amortized on a straight line basis over the remaining estimated economic life of the product. Amortizable assets that have not yet begun to be amortized are included in thereafter in the table above. For the three months ended March 31, 2014 and 2015, the Company capitalized software development costs in the amount of $0.5 million and $0.9 million, respectively. During each of the nine months ended March 31, 2014 and 2015, the Company capitalized software development costs in the amount of $2.2 million.

- 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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