Goodwill

12 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

The carrying amount of goodwill by reportable segment as of June 30, 2024 and 2023 was as follows:


	Vista		PrintBrothers		The Print Group		All Other Businesses		Total
Balance as of June 30, 2022	$	291,498	$	130,828	$	143,969	$	200,305	$	766,600
Acquisitions (1)	—		4,724		—		—		4,724

Impairment (2)	—		—		—		(5,609)		(5,609)
Adjustments	—		—		—		225		225
Effect of currency translation adjustments (3)	4,233		5,540		5,828		—		15,601
Balance as of June 30, 2023	295,731		141,092		149,797		194,921		781,541
Acquisitions (1)	—		2,701		—		—		2,701


Adjustments (4)	—		7,319		—		—		7,319
Effect of currency translation adjustments (3)	(446)		(1,868)		(2,109)		—		(4,423)
Balance as of June 30, 2024	$	295,285	$	149,244	$	147,688	$	194,921	$	787,138

________________________

(1) In fiscal years 2024 and 2023, we acquired two immaterial businesses that are included in our PrintBrothers reportable segment, which resulted in the recognition of goodwill of $$2,701 and $4,724, respectively.

(2) During fiscal year 2023, we recorded an impairment charge of $5,609, related to one of our small reporting units acquired in fiscal year 2021 that is part of our All Other Businesses reportable segment.

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

(4) During fiscal year 2024, we identified an immaterial error in the initial purchase accounting related to the noncontrolling interest of a previously acquired business. This was corrected in the current period resulting in an increase to goodwill and noncontrolling interest of $7,319. This adjustment was immaterial to the prior- and current-period financial statements. Refer to Note 14 for additional information.

Annual Impairment Review

Fiscal year 2024

Our goodwill accounting policy establishes an annual goodwill impairment test date of May 31. We identified eight reporting units with goodwill individually. We considered the timing of our most recent fair value assessments, associated headroom, actual operating results as compared to the forecasts used to assess fair value, the current long-term forecasts for each reporting unit, and the general economic environment of each reporting unit. After performing this qualitative assessment, we determined that there was no indication the carrying values for six of these reporting units exceeded their respective fair values.

For each of the two remaining reporting units, we performed a quantitative goodwill impairment test that compared the estimated fair value to carrying value. We used the income approach, specifically the discounted cash flow method, to derive the fair value. 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. As required, prior to performing the quantitative goodwill impairment test for the two reporting units mentioned above, we first evaluated the recoverability of long-lived assets and concluded that no impairment of long-lived assets existed.

The quantitative tests were performed for Exaprint, which is part of The Print Group reportable segment, and BuildASign, which is included in the All Other Businesses reportable segment. For both reporting units, we concluded that sufficient headroom between the estimated fair value and carrying value existed and that no goodwill impairment was identified. There were no events that caused us to update our annual impairment test.

Fiscal year 2023

For our annual goodwill impairment test date of May 31, 2023, we determined that there was no indication the carrying values for nine of our ten reporting units exceeded their respective fair values. For the one remaining reporting unit, which is included in our All Other Businesses reportable segment, we concluded that an impairment existed, driven in part by recent declines in revenue growth rates and lower near-term cash flow forecasts. We recognized an impairment charge of $5,609, using a WACC of 17.0%, resulting in a post-impairment goodwill balance of $8,824 at June 30, 2023.

Acquired Intangible Assets


	June 30, 2024						June 30, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trade name	$	141,364	$	(82,482)	$	58,882	$	147,096	$	(77,501)	$	69,595
Developed technology	94,038		(89,787)		4,251		97,316		(87,872)		9,444
Customer relationships	187,343		(183,718)		3,625		199,932		(183,879)		16,053
Customer network and other	24,215		(15,940)		8,275		24,368		(14,470)		9,898
Print network	23,573		(22,046)		1,527		23,909		(19,703)		4,206
Total intangible assets	$	470,533	$	(393,973)	$	76,560	$	492,621	$	(383,425)	$	109,196

Acquired intangible assets amortization expense for the years ended June 30, 2024, 2023, and 2022 was $31,443, $46,854, and $54,497 respectively. Estimated intangible assets amortization expense for each of the five succeeding fiscal years and thereafter is as follows:


2025	$	19,017
2026	12,294
2027	10,807
2028	8,685
2029	6,800
Thereafter	18,957
	$	76,560