Goodwill and Acquired Intangibles

12 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

The carrying amount of goodwill by reportable segment as of June 30, 2022 and June 30, 2021 was as follows:


	Vista		PrintBrothers		The Print Group		All Other Businesses		Total
Balance as of June 30, 2020	$	150,846	$	129,764	$	155,197	$	186,097	$	621,904
Acquisitions (1)	70,792		—		—		14,208		85,000
Effect of currency translation adjustments (2)	3,509		7,543		9,023		—		20,075
Balance as of June 30, 2021	225,147		137,307		164,220		200,305		726,979
Acquisitions (1)	73,168		10,484		—		—		83,652


Adjustments	(821)		—		—		—		(821)
Effect of currency translation adjustments (2)	(5,996)		(16,963)		(20,251)		—		(43,210)
Balance as of June 30, 2022	$	291,498	$	130,828	$	143,969	$	200,305	$	766,600

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(1) On October 1, 2021, we acquired Depositphotos Inc., which is included in our Vista reportable segment. In the third quarter of fiscal 2022, we recognized goodwill related to an immaterial acquisition within our PrintBrothers reportable segment. In fiscal year 2021, we acquired 99designs, which is included in our Vista reportable segment, and a small business included within our All Other Businesses reportable segment. Refer to Note 7 for additional details.

(2) Related to goodwill held by subsidiaries whose functional currency is not the U.S. dollar.

Annual Impairment Review

Our goodwill accounting policy establishes an annual goodwill impairment test date of May 31. For our fiscal year 2022 annual impairment assessment, we bypassed the qualitative test and performed a quantitative test for all nine reporting units with goodwill.

To perform our quantitative goodwill test, we used the income approach, specifically the discounted cash flow method, to derive the fair value of each reporting unit. This approach calculates fair value by estimating the after-tax cash flows attributable to a reporting unit and then discounting the after-tax cash flows to a present value using a risk-adjusted discount rate. We selected this method as being the most meaningful in preparing our goodwill assessment as we believe the income approach most appropriately measures our income-producing assets. We considered using the market approach but concluded it was not appropriate in valuing these particular reporting units given the lack of relevant market comparisons available. The cash flow projections in the fair value analysis are considered Level 3 inputs, and consist of management's estimates of revenue growth rates and operating margins, taking into consideration historical results, as well as industry and market conditions. The discount rate used in the fair value analysis is based on a weighted average cost of capital (“WACC”), which represents the average rate a business must pay its providers of debt and equity, plus a risk premium. The respective WACC percentages used for each reporting unit within our goodwill impairment test were derived from a group of comparable companies for each respective reporting unit and adjusted for the risk premium associated with each reporting unit. Based on the results of this test, the fair values of each of our reporting units exceeded their carrying values and no goodwill impairment was recognized.

Acquired Intangible Assets


	June 30, 2022						June 30, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trade name	$	144,916	$	(65,203)	$	79,713	$	152,347	$	(59,432)	$	92,915
Developed technology	96,120		(75,585)		20,535		99,905		(71,255)		28,650
Customer relationships	195,766		(160,247)		35,519		199,294		(152,410)		46,884
Customer network and other	23,946		(11,580)		12,366		22,301		(14,431)		7,870
Print network	22,982		(16,385)		6,597		26,182		(15,757)		10,425
Total intangible assets	$	483,730	$	(329,000)	$	154,730	$	500,029	$	(313,285)	$	186,744

Acquired intangible assets amortization expense for the years ended June 30 2022, 2021, and 2020 was $54,497, $53,818, and $51,786 respectively. Estimated intangible assets amortization expense for each of the five succeeding fiscal years and thereafter is as follows:


2023	$	47,332
2024	31,785
2025	18,405
2026	12,235
2027	10,744
Thereafter	34,229
	$	154,730