Goodwill and Intangible Assets

3 Months Ended

Sep. 30, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Note 4. Goodwill and Intangible Assets

Goodwill and intangible assets acquired through business combinations consisted of the following (in thousands):

	September 30, 2021
	Useful Life (In years)	Gross Amount		Accumulated Amortization			Net Book Value
Goodwill	Indefinite	$	262,015	$	—		$	262,015
Client relationships	9 to 15		41,000		(16,848	)		24,152
Noncompete agreements	3 to 5		4,107		(2,550	)		1,557
Trademarks and trade names	Indefinite		4,892		—			4,892
Trademarks and trade names	1 to 3		7,613		(3,171	)		4,442
Core technology	3 to 5		47,019		(33,022	)		13,997
Intangible assets, net		$	104,631	$	(55,591	)	$	49,040

	June 30, 2021
	Useful Life (In years)	Gross Amount		Accumulated Amortization			Net Book Value
Goodwill	Indefinite	$	262,270	$	—		$	262,270
Client relationships	9 to 15		41,000		(15,879	)		25,121
Noncompete agreements	3 to 5		4,107		(2,442	)		1,665
Trademarks and trade names	Indefinite		4,892		—			4,892
Trademarks and trade names	1 to 3		7,613		(2,902	)		4,711
Core technology	3 to 5		47,019		(31,059	)		15,960
Intangible assets, net		$	104,631	$	(52,282	)	$	52,349

The fair value of intangible assets was derived based on the income approach. This fair value measurement is based on significant inputs that are not observable in the market. Key assumptions utilized in management’s analysis included the following:

•	Revenues and expense forecasts were based on trends of historical performance and management’s estimate of future performance.

•	Cash flows utilized in the discounted cash flow analysis were estimated using a weighted-average cost of capital.

Changes in the carrying amounts of goodwill were as follows (in thousands):

	Three Months Ended September 30,
	2021			2020
Balance, beginning of period	$	262,270		$	227,992
Foreign currency translation adjustment		(255	)		374
Balance, end of period	$	262,015		$	228,366

Amortization expense related to acquired intangible assets was recognized as follows (in thousands):

	Three Months Ended September 30,
	2021		2020
Cost of revenues	$	1,964	$	1,752
Sales and marketing		1,239		992
General and administrative		106		—
Total amortization expense	$	3,309	$	2,744

As of September 30, 2021, the estimated future amortization expense of acquired intangible assets is as follows (in thousands):

Fiscal Year Ending June 30,	Amount
2022 (remaining 9 months)	$	9,928
2023		9,190
2024		7,707
2025		5,291
2026		3,111
2027 and thereafter		8,921
Total remaining amortization	$	44,148