Goodwill and Intangible Assets

6 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The changes in the carrying amount of goodwill for the transition period ended December 31, 2020 are as follows:


(in millions)	Diagnostic		Other		Total
Beginning balance	$	270.7	$	56.9	$	327.6
Translation adjustments	1.6		—		1.6
Ending balance	$	272.3	$	56.9	$	329.2

The changes in the carrying amount of goodwill for the fiscal years ended June 30, 2020 and 2019 are as follows:


	Diagnostic				Other				Total
	Years Ended June 30,				Years Ended June 30,				Years Ended June 30,
(in millions)	2020		2019		2020		2019		2020		2019
Beginning balance	$	351.6	$	252.8	$	65.6	$	65.8	$	417.2	$	318.6
Acquisitions (see note 17)	—		94.9		—		—		—		94.9
Adjustments to acquisitions (see note 17)	—		4.4		—		—		—		4.4
Goodwill deconsolidated on sale of Clinic	—		—		(7.3)		—		(7.3)		—
Goodwill impairment charge	(80.7)		—		(1.3)		—		(82.0)		—
Translation adjustments	(0.2)		(0.5)		(0.1)		(0.2)		(0.3)		(0.7)
Ending balance	$	270.7	$	351.6	$	56.9	$	65.6	$	327.6	$	417.2

The Company assessed goodwill for impairment in accordance with the appropriate guidance (see Note 1) and determined none of its reporting units were impaired during the transition period ended December 31, 2020.

During the fiscal year ended June 30, 2020, 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 Myriad Mental Health, Myriad Autoimmune and Myriad International reporting units as of March 31, 2020. Based on this analysis, the Company recognized a goodwill impairment charge of $80.7 million related to the goodwill from the Myriad Autoimmune reporting unit. The Myriad Autoimmune reporting unit is part of the Company’s diagnostic segment. The goodwill impairment charge is reflected in Goodwill and intangible asset impairment charges in the Consolidated Statements of Operations.

During the fiscal year ended June 30, 2020, the Company also recognized a $1.3 million impairment charge for goodwill allocated to the Clinic asset group that is included in Goodwill and intangible asset impairment charges in the Consolidated Statements of Operations. The Clinic asset group was part of the Company’s other segment.

Intangible assets primarily consist of amortizable assets of purchased licenses and technologies, developed technology, a laboratory database, trademarks, and customer relationships as well as a non-amortizable intangible asset of in-process research and development. The Company’s developed technology and database acquired have estimated remaining useful lives between 1 and 16 years, trademarks acquired have an estimated remaining useful life of approximately eight years and customer relationships have an estimated remaining useful life of approximately one year. The estimated useful life of acquired in-process research and development was also evaluated in conjunction with the annual impairment analysis of intangible assets. The classification of the acquired in-process research and development as an indefinite lived asset was deemed appropriate as the related research and development was not yet complete nor had it been abandoned. During the fiscal year ended June 30, 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 million, which is reflected in Goodwill and intangible asset impairment charges in the Consolidated Statements of Operations. The abandoned in-process research and development intangible asset was reported as part of the Company’s diagnostic segment. The Company concluded there was no impairment of long-lived assets for the transition period ended December 31, 2020 or for the fiscal years ended June 30, 2020, 2019 and 2018.

The following tables summarize the amounts reported as intangible assets (in millions):


At December 31, 2020:	Gross Carrying Amount		Accumulated Amortization		Net
Purchased licenses and technologies	$	818.2	$	(248.2)	$	570.0
Customer relationships	4.7		(4.5)		0.2
Trademarks	3.0		(1.5)		1.5
Total amortizable intangible assets	825.9		(254.2)		571.7
In-process research and development	4.8		—		4.8
Total unamortized intangible assets	4.8		—		4.8
Total intangible assets	$	830.7	$	(254.2)	$	576.5


At June 30, 2020:	Gross Carrying Amount		Accumulated Amortization		Net
Purchased licenses and technologies	$	815.6	$	(217.1)	$	598.5
Customer relationships	4.6		(4.2)		0.4
Trademarks	3.0		(1.4)		1.6
Total amortizable intangible assets	823.2		(222.7)		600.5
In-process research and development	4.8		—		4.8
Total unamortized intangible assets	4.8		—		4.8
Total intangible assets	$	828.0	$	(222.7)	$	605.3


At June 30, 2019:	Gross Carrying Amount		Accumulated Amortization		Net
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 amortizable 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 December 31, 2020 the weighted average remaining amortization period for purchased licenses and technologies, trademarks, and customer relationships is approximately 11 years.

The Company recorded amortization during the respective periods for these intangible assets as follows:


	Transition Period Ended December 31,		Years Ended June 30,
(in millions)	2020		2020		2019		2018
Amortization of intangible assets	$	30.8	$	61.0	$	59.3	$	37.3

Future amortization expense of intangible assets as of December 31, 2020 is estimated to be as follows (in millions):


Years Ended December 31,	Amortization Expense
2021	$	58.3
2022	52.8
2023	52.6
2024	52.6
2025	52.6
Thereafter	302.8
Total	$	571.7