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Goodwill and Intangible Assets | 9 Months Ended
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Mar. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets |
(6) | GOODWILL AND INTANGIBLE ASSETS
Goodwill The Company has recorded goodwill of $327.1 from the acquisitions of Counsyl that was completed on July 31, 2018, Assurex that was completed on August 31, 2016, Sividon Diagnostics GmbH (“Sividon”) that was completed on May 31, 2016, Crescendo Bioscience, Inc. that was completed on February 28, 2014 and Rules-Based Medicine, Inc. that was completed on May 31, 2011. Of this goodwill, $270.3 relates to the Company’s diagnostic segment and $56.8 relates to the other segment. The Company previously had recorded goodwill associated with the Clinic that was completed on February 27, 2015. The following summarizes changes to the goodwill balance for the nine months ended March 31, 2020:
|  | Carrying amount |
Ending balance June 30, 2019 |  | $ | 417.2 |
Goodwill deconsolidated on sale of the Clinic |  |  | (7.3 | )
Goodwill impairment charge |  |  | (82.0 | )
Translation adjustments |  |  | (0.8 | )
Ending balance March 31, 2020 |  | $ | 327.1 |
As a result of the effect of COVID-19 on expected future cash flows and a corresponding decline in market capitalization and enterprise value, the Company performed an interim quantitative impairment review of goodwill for the Assurex, Crescendo Bioscience and Myriad International reporting units as of March 31, 2020. The Company estimated the fair values of each reporting unit using both the market approach, applying a multiple of earnings based on observable multiples for guideline publicly traded companies, and the income approach, discounting future cash flows based on management’s expectations of the current and future operating environment for each reporting unit. The Company corroborated the reasonableness of the estimated reporting unit fair values by reconciling to its enterprise value and market capitalization. Based on this analysis, the Company recognized a goodwill impairment charge of $80.7 related to the goodwill from the Crescendo reporting unit in the third quarter of fiscal year 2020. The Crescendo reporting unit is part of the Company’s diagnostic segment. The calculation of the impairment charge includes substantial fact-based determinations and estimates including weighted average cost of capital, future revenue, profitability, cash flows and fair values of assets and liabilities. The goodwill impairment charge is reflected in g oodwill and intangible asset impairment charges in the Condensed Consolidated Statements of Operations. The Company recognized a $1.3 impairment charge for goodwill allocated to the Clinic asset group during the second quarter of fiscal year 2020 that is included in goodwill and intangible asset impairment expense for the nine months ended March 31, 2020. The Clinic asset group is part of the Company’s other segment. See Note 18 for further discussions regarding the deconsolidation of goodwill upon the closing of the sale of the Clinic. Intangible Assets Intangible assets primarily consist of amortizable assets of purchased licenses and technologies, customer relationships, and trade names as well as non-amortizable intangible assets of in-process technologies and research and development. The following summarizes the amounts reported as intangible assets:
|  | Gross |  |  |  |  |  |  |  |  |
|  | Carrying |  |  | Accumulated |  |  |  |  |
|  | Amount |  |  | Amortization |  |  | Net |
At March 31, 2020: |  |  |  |  |  |  |  |  |  |  |  |
Purchased licenses and technologies |  | $ | 814.9 |  |  | $ | (201.8 | ) |  | $ | 613.0 |
Customer relationships |  |  | 4.7 |  |  |  | (4.1 | ) |  |  | 0.5 |
Trademarks |  |  | 3.0 |  |  |  | (1.4 | ) |  |  | 1.7 |
Total amortized intangible assets |  |  | 822.5 |  |  |  | (207.3 | ) |  |  | 615.2 |
In-process research and development |  |  | 4.8 |  |  |  | — |  |  |  | 4.8 |
Total unamortized intangible assets |  |  | 4.8 |  |  |  | — |  |  |  | 4.8 |
Total intangible assets |  | $ | 827.3 |  |  | $ | (207.3 | ) |  | $ | 620.0 |
|  | Gross |  |  |  |  |  |  |  |  |
|  | Carrying |  |  | Accumulated |  |  |  |  |
|  | Amount |  |  | Amortization |  |  | Net |
At June 30, 2019: |  |  |  |  |  |  |  |  |  |  |  |
Purchased licenses and technologies |  | $ | 815.7 |  |  | $ | (156.6 | ) |  | $ | 659.1 |
Customer relationships |  |  | 4.6 |  |  |  | (3.8 | ) |  |  | 0.8 |
Trademarks |  |  | 3.0 |  |  |  | (1.2 | ) |  |  | 1.8 |
Total amortized intangible assets |  |  | 823.3 |  |  |  | (161.6 | ) |  |  | 661.7 |
In-process research and development |  |  | 23.0 |  |  |  | — |  |  |  | 23.0 |
Total unamortized intangible assets |  |  | 23.0 |  |  |  | — |  |  |  | 23.0 |
Total intangible assets |  | $ | 846.3 |  |  | $ | (161.6 | ) |  | $ | 684.7 |
As of March 31, 2020, the Company decided to abandon the development of one of its in-process research and development intangible assets, and as a result the Company recognized a charge of $17.7 in the third quarter of fiscal year 2020, which is reflected in goodwill and intangible asset impairment charges in the Condensed Consolidated Statements of Operations. The in-process research and development intangible asset was reported as part of the Company’s diagnostic segment. The Company recorded amortization expense during the respective periods for these intangible assets as follows:
|  | Three months ended |  |  | Nine months ended |
|  | March 31, |  |  | March 31, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Amortization of intangible assets |  | $ | 15.3 |  |  | $ | 15.2 |  |  | $ | 45.8 |  |  | $ | 44.0 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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