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Goodwill And Intangible Assets, Net | 6 Months Ended
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Dec. 31, 2016
Goodwill And Intangible Assets, Net [Abstract] |
Goodwill And Intangible Assets, Net | 7. Goodwill and intangible assets, net Goodwill Summarized below is the movement in the carrying value of goodwill for the six months ended December 31, 2016:
|  |  |  |  | Accumulated |  | Carrying |
|  | Gross value |  |  | impairment |  | value |
Balance as of June 30, 2016 | $ | 179,478 |  | $ | - | $ | 179,478 |
Acquisition of C4U Malta (Note 2) |  | 2,475 |  |  | - |  | 2,475 |
Foreign currency adjustment(1) |  | (1,267 | ) |  | - |  | (1,267 | )
Balance as of December 31, 2016 | $ | 180,686 |  | $ | - | $ | 180,686 |
(1) - Represents the effects of the fluctuations between the South African rand, Euro and the Korean won, and the U.S. dollar on the carrying value.
Goodwill has been allocated to the Company's reportable segments as follows:
|  | South |  |  |  |  | Financial |  |  |
|  | African |  | International |  |  | inclusion and |  |  |
|  | transaction |  | transaction |  |  | applied |  | Carrying |
|  | processing |  | processing |  |  | technologies |  | value |
Balance as of June 30, 2016 | $ | 20,425 | $ | 136,185 |  | $ | 22,868 | $ | 179,478 |
Acquisition of C4U Malta (Note 2) |  | - |  | 2,475 |  |  | - |  | 2,475 |
Foreign currency adjustment(1) |  | 1,554 |  | (4,118 | ) |  | 1,297 |  | (1,267 | )
Balance as of December 31, 2016 | $ | 21,979 | $ | 134,542 |  | $ | 24,165 | $ | 180,686 |
(1) - Represents the effects of the fluctuations between the South African rand, Euro and the Korean won, and the U.S. dollar on the carrying value. Intangible assets, net Intangible assets acquired Summarized below is the fair value of the Pros Software and C4U Malta intangible assets acquired, translated at the exchange rate applicable as of the acquisition date, and the weighted-average amortization period of the intangible assets:
|  |  | Weighted-
|  | Fair value | average
|  | as of | amortization
|  | acquisition | period (in
|  | date | years)
Finite-lived intangible asset: |  |  |
Customer relationships – Pros Software | $ | 2,311 | 0.75
Customer relationships – C4U Malta | $ | 186 | 0.65
Software and unpatented technology | $ | 147 | 1.25
Infinite-lived intangible asset: |  |  |
Financial institution license | $ | 745 | n/a
On acquisition, the Company recognized a deferred tax liability of approximately $0.7 million related to the acquisition of the intangible assets. Carrying value and amortization of intangible assets Summarized below is the carrying value and accumulated amortization of the intangible assets as of December 31, 2016 and June 30, 2016:
|  | As of December 31, 2016 |  |  | As of June 30, 2016
|  | Gross |  |  |  |  | Net |  |  | Gross |  |  |  |  | Net
|  | carrying |  | Accumulated |  |  | carrying |  |  | carrying |  | Accumulated |  |  | carrying
|  | value |  | amortization |  |  | value |  |  | value |  | amortization |  |  | value
Finite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships (1) . | $ | 94,654 | $ | (55,986 | ) | $ | 38,668 |  | $ | 94,529 | $ | (51,557 | ) | $ | 42,972
Software and unpatented |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
technology (1) |  | 30,959 |  | (28,532 | ) |  | 2,427 |  |  | 31,452 |  | (28,791 | ) |  | 2,661
FTS patent |  | 2,789 |  | (2,789 | ) |  | - |  |  | 2,592 |  | (2,592 | ) |  | -
Exclusive licenses |  | 4,506 |  | (4,506 | ) |  | - |  |  | 4,506 |  | (4,506 | ) |  | -
Trademarks |  | 6,670 |  | (4,140 | ) |  | 2,530 |  |  | 6,685 |  | (3,762 | ) |  | 2,923
Total finite-lived intangible |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
assets |  | 139,578 |  | (95,953 | ) |  | 43,625 |  |  | 139,764 |  | (91,208 | ) |  | 48,556
Infinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial institution license |  | 714 |  | - |  |  | 714 |  |  | - |  | - |  |  | -
Total infinite-lived intangible |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
assets |  | 714 |  | - |  |  | 714 |  |  | - |  | - |  |  | -
Total intangible assets | $ | 140,292 | $ | (95,953 | ) | $ | 44,339 |  | $ | 139,764 | $ | (91,208 | ) | $ | 48,556
(1) Includes the customer relationships acquired as part of the Pros Software acquisition in October 2016, and the customer relationships and software and unpatented technology acquired as part of the C4U Malta acquisition in November 2016. Aggregate amortization expense on the finite-lived intangible assets for the three months ended December 31, 2016 and 2015, was approximately $3.6 million and $2.5 million, respectively. Aggregate amortization expense on the finite-lived intangible assets for the six months ended December 31, 2016 and 2015, was approximately $6.5 million and $5.9 million, respectively. Future estimated annual amortization expense for the next five fiscal years and thereafter, assuming exchange rates that prevailed on December 31, 2016, 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.
2017 | $ | 14,241
2018 |  | 11,061
2019 |  | 10,391
2020 |  | 9,695
2021 |  | 4,236
Thereafter | $ | 371

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
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