Goodwill And Intangible Assets

9 Months Ended

Mar. 31, 2014

Goodwill And Intangible Assets [Abstract]

6. Goodwill and intangible assets

Goodwill

Summarized below is the movement in the carrying value of goodwill for the nine months ended March 31, 2014:


				Accumulated			Carrying
		Gross value		impairment			value
Balance as of June 30, 2013	$	218,558	$	(42,752	)	$	175,806
Foreign currency adjustment ⁽¹⁾		6,032		(2,006	)		4,026
Balance as of March 31, 2014	$	224,590	($	44,758	)	$	179,832

(1) – the foreign currency adjustment represents the effects of the fluctuations between the South African rand and the Korean won, and the US dollar on the carrying value.


		As of		As of
		March 31,		June 30,
		2014		2013
SA transaction-based activities	$	28,532	$	30,525
International transaction-based activities		121,656		113,972
Smart card accounts		-		-
Financial services		-		-
Hardware, software and related technology sales		29,644		31,309
Total	$	179,832	$	175,806

Intangible assets

Carrying value and amortization of intangible assets

Summarized below is the carrying value and accumulated amortization of the intangible assets as of March 31, 2014 and June 30, 2013:


		As of March 31, 2014							As of June 30, 2013
		Gross					Net		Gross					Net
		carrying		Accumulated carrying					carrying		Accumulated			carrying
		value		amortization			value		value		amortization			value
Finite-lived intangible assets:
Customer relationships	$	94,309	$	(37,373	)	$	56,936	$	90,469	$	(29,818	)	$	60,651
Software and unpatented
technology		35,851		(27,512	)		8,339		34,951		(22,151	)		12,800
FTS patent		3,620		(3,620	)		-		3,873		(3,873	)		-
Exclusive licenses		4,506		(4,506	)		-		4,506		(4,506	)		-
Trademarks		6,671		(2,681	)		3,990		6,611		(2,805	)		3,806
Customer database		574		(574	)		-		614		(614	)		-
Total finite-lived intangible
assets	$	145,531	$	(76,266	)	$	69,265	$	141,024	$	(63,767	)	$	77,257

Aggregate amortization expense on the finite-lived intangible assets for the three and nine months ended March 31, 2014, was approximately $4.6 million and $12.5 million, respectively (three and nine months ended March 31, 2013, was approximately $4.4 million and $14.0 million, respectively).

Future estimated annual amortization expense for the next five fiscal years and thereafter, assuming exchange rates prevailing on March 31, 2014, is presented in the table below. Actual amortization expense in future periods could differ from this estimate as a result of acquisitions, changes in useful lives, exchange rate fluctuations and other relevant factors.


2014	$	16,229
2015		15,080
2016		11,280
2017		8,958
2018		8,958
Thereafter	$	20,671

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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