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Acquisition And Disposal Of Controlling Interest In DNI (Tables) | 9 Months Ended
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Mar. 31, 2019
Business Acquisition [Line Items] |
Impact Of Deconsolidation Of DNI And Calculation Of Net Loss Recognized On Deconsolidation |
|  |  |  |  |  |  |  | Equity method |  |  |  |
|  |  |  |  |  |  |  | investment as of |  |  |  |
|  |  |  |  |  |  |  | March 31, 2019 |  |  |  |
|  |  |  |  |  |  |  | (Refer also Note 8) |  |  |  |
|  |  |  |  |  |  |  | 8% |  |  |  |  |  |  |
|  |  |  |  |  |  |  | retained |  |  |  |  |  |  |
|  |  |  |  |  |  |  | interest |  |  |  |  |  | Attributed |
|  |  |  |  |  |  |  | sold in |  |  | 30% |  |  | to non- |
|  |  |  |  | 17% |  |  | May |  |  | retained |  |  | controlling |
|  | Total |  |  | sold |  |  | 2019 |  |  | interest |  |  | interest |
Fair value of consideration received | $ | 27,626 |  | $ | 27,626 |  | $ | - |  | $ | - |  | $ | - |
Fair value of retained interest of 30% in DNI(1) |  | 74,195 |  |  | - |  |  | 14,849 |  |  | 59,346 |  |  | - |
Carrying value of non-controlling interest |  | 88,934 |  |  | - |  |  | - |  |  | - |  |  | 88,934 |
Subtotal |  | 190,755 |  |  | 27,626 |  |  | 14,849 |  |  | 59,346 |  |  | 88,934 |
Less: carrying value of DNI, comprising |  | 195,895 |  |  | 34,311 |  |  | 14,540 |  |  | 58,110 |  |  | 88,934 |
Cash and cash equivalents |  | 2,114 |  |  | 354 |  |  | 158 |  |  | 633 |  |  | 969 |
Accounts receivable, net |  | 24,577 |  |  | 4,116 |  |  | 1,841 |  |  | 7,358 |  |  | 11,262 |
Finance loans receivable, net |  | 1,030 |  |  | 173 |  |  | 77 |  |  | 308 |  |  | 472 |
Inventory |  | 893 |  |  | 149 |  |  | 66 |  |  | 268 |  |  | 410 |
Property, plant and equipment, net |  | 1,265 |  |  | 212 |  |  | 95 |  |  | 379 |  |  | 579 |
Equity-accounted investments (Note 8) |  | 242 |  |  | 41 |  |  | 19 |  |  | 72 |  |  | 110 |
Goodwill (Note 9) |  | 113,003 |  |  | 18,924 |  |  | 8,466 |  |  | 33,834 |  |  | 51,779 |
Intangible assets, net |  | 80,769 |  |  | 13,526 |  |  | 6,051 |  |  | 24,183 |  |  | 37,009 |
Deferred income taxes |  | 28 |  |  | 5 |  |  | 2 |  |  | 8 |  |  | 13 |
Other long-term assets |  | 26,553 |  |  | 4,447 |  |  | 1,989 |  |  | 7,950 |  |  | 12,167 |
Accounts payable |  | (5,186 | ) |  | (868 | ) |  | (389 | ) |  | (1,553 | ) |  | (2,376 | )
Other payables(2) |  | (16,484 | ) |  | (2,760 | ) |  | (1,235 | ) |  | (4,936 | ) |  | (7,553 | )
Income taxes payable |  | (2,482 | ) |  | (416 | ) |  | (186 | ) |  | (743 | ) |  | (1,137 | )
Deferred income taxes |  | (22,083 | ) |  | (3,698 | ) |  | (1,654 | ) |  | (6,612 | ) |  | (10,119 | )
Long-term debt (Note 11) |  | (10,150 | ) |  | (1,700 | ) |  | (760 | ) |  | (3,039 | ) |  | (4,651 | )
Released from accumulated other comprehensive |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
income – foreign currency translation reserve (Note 13) |  | 1,806 |  |  | 1,806 |  |  | - |  |  | - |  |  | - |
Loss recognized on disposal, before tax, comprising |  | (5,140 | ) |  | (6,685 | ) |  | 309 |  |  | 1,236 |  |  | - |
Related to sale of 17% of DNI |  | (6,685 | ) |  | (6,685 | ) |  | - |  |  | - |  |  |  |
Related to fair value adjustment of retained interest |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
in 38% of DNI |  | 1,545 |  |  | - |  |  | 309 |  |  | 1,236 |  |  |  |
Taxes related to gain recognized on disposal(3) |  | - |  |  | 505 |  |  | (3,836 | ) |  | 3,331 |  |  |  |
Loss recognized on disposal, after tax | $ | (5,140 | ) | $ | (7,190 | ) | $ | 4,145 |  | $ | (2,095 | ) |  |  |
(1) The fair value of the retained interest in 38% of DNI of $74.2 million ($14.9 million plus $59.3 million has been calculated using the implied fair value of DNI pursuant to the RMB Disposal and has been calculated as ZAR 215.0 million divided by 7. 605235% multiplied by 38%, translated to dollars at the March 31, 2019, rate of exchange. The fair value of the retained interest in DNI is included in equity-accounted investment on the unaudited condensed consolidated balance sheet as of March 31, 2019. (2) Other payables include a short-term loan of ZAR 60.5 million ($4.2 million, translated at exchange rates applicable as of March 31, 2019) due to the Company and included in accounts receivable, net on the Company's unaudited condensed consolidated balance sheet as of March 31, 2019. The loan is repayable in full on or before June 30, 2019. Interest on the loan is charged at the South African prime rate. (3) Amounts presented are net of a valuation allowance provided. The disposal of DNI results in a capital loss for tax purposes of approximately $1.5 million and the Company has provided a valuation allowance of $1.5 million against this capital loss because it does not have any capital gains to offset against this amount. On an individual basis, the transaction to dispose of 17% of DNI resulted in a capital gain of $0.5 million and the re-measurement of the retained 38% interest has resulted in a capital loss of $2.0 million ($5.3 million (8% transaction) less $3.3 million (30% transaction)). The valuation allowance of $1.5 million has been provided against the $5.3 million, for a net amount presented in the table above of $3.8 million ($5.3 million less $1.5 million).
Impact Of Deconsolidation Of DNI On Statement Of Operations And Statement Of Cash Flows |
| DNI
|  | Three months ended |  |  | Nine months ended
|  | March 31, |  |  | March 31,
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018
Unaudited condensed consolidated statement of operations |  |  |  |  |  |  |  |  |  |  |
Discontinued: |  |  |  |  |  |  |  |  |  |  |
Revenue | $ | 17,842 |  | $ | - |  | $ | 56,337 |  | $ | -
Cost of goods sold, IT processing, servicing and support |  | 7,502 |  |  | - |  |  | 27,667 |  |  | -
Selling, general and administration |  | 1,935 |  |  | - |  |  | 4,295 |  |  | -
Depreciation and amortization |  | 2,427 |  |  | - |  |  | 8,026 |  |  | -
Impairment loss |  | 5,305 |  |  | - |  |  | 5,305 |  |  | -
Operating income |  | 673 |  |  | - |  |  | 11,044 |  |  | -
Interest income |  | 208 |  |  | - |  |  | 707 |  |  | -
Interest expense |  | 396 |  |  | - |  |  | 812 |  |  | -
Net income before tax |  | (4,655 | ) |  | - |  |  | 5,799 |  |  | -
Income tax expense |  | 146 |  |  | - |  |  | 3,124 |  |  | -
Net income before earnings from equity-accounted investments |  | (4,801 | ) |  | - |  |  | 2,675 |  |  | -
Earnings from equity-accounted investments(1)(2) | $ | 73 |  | $ | 3,291 |  | $ | 15 |  | $ | 5,202
Unaudited condensed consolidated statement of cash flows |  |  |  |  |  |  |  |  |  |  |
Discontinued: |  |  |  |  |  |  |  |  |  |  |
Total net cash (used in) provided by operating activities(3) | ($ | 393 | ) | $ | - |  | $ | 6,635 |  | $ | 1,765
Total net cash (used in) provided by investing activities | ($ | 319 | ) | $ | - |  | ($ | 516 | ) | $ | -
(1) Earnings from equity-accounted investments for the three and nine months ended March 31, 2019, represents earnings attributed to equity-accounted investment owned by DNI and included in the Company's results as a result of the consolidation of DNI. (2) Earnings from equity-accounted investments for the three and nine months ended March 31, 2018, represents DNI earnings (net of amortization of acquired intangibles and related deferred tax) attributed to the Company as a result of the Company using the equity method to account for its investment in DNI during the period. (3) Total net cash (used in) provided by operating activities for the three and nine months ended March 31, 2018, represent dividends received from DNI during these periods.
DNI [Member] |
Business Acquisition [Line Items] |
Schedule Of Purchase Price Allocation Translated At Applicable Foreign Exchange Rate |
|  | DNI – discontinued operation |
|  | as of June 30, 2018 |
|  | Initial |  |  |  |  |  | Amended |
|  | DNI PPA |  |  | Amendment |  |  | DNI PPA |
Current assets of discontinued operation: | $ | 22,482 |  | $ | - |  | $ | 22,482 |
Cash and cash equivalents |  | 2,979 |  |  | - |  |  | 2,979 |
Accounts receivable (Note 4) |  | 16,235 |  |  | - |  |  | 16,235 |
Finance loans receivable (Note 4) |  | 742 |  |  | - |  |  | 742 |
Inventory (Note 5) |  | 2,526 |  |  | - |  |  | 2,526 |
Long-term assets of discontinued operation: |  | 241,729 |  |  | (1,951 | ) |  | 239,778 |
Property, plant and equipment |  | 1,317 |  |  | - |  |  | 1,317 |
Equity-accounted investment (Note 8) |  | 339 |  |  | - |  |  | 339 |
Goodwill (Note 9) |  | 114,161 |  |  | 5,017 |  |  | 119,178 |
Intangible assets (Note 9) |  | 104,003 |  |  | (6,968 | ) |  | 97,035 |
Deferred tax assets |  | 561 |  |  | - |  |  | 561 |
Other long-term assets (Note 8) |  | 21,348 |  |  | - |  |  | 21,348 |
Current liabilities of discontinued operation: |  | (20,914 | ) |  | - |  |  | (20,914 | )
Accounts payables |  | (13,949 | ) |  | - |  |  | (13,949 | )
Other payables |  | (6,349 | ) |  | - |  |  | (6,349 | )
Current portion of long-term borrowings (Note 11) |  | (616 | ) |  | - |  |  | (616 | )
Long-term liabilities of discontinued operation: |  | (37,412 | ) |  | 1,951 |  |  | (35,461 | )
Other long-term liabilities |  | (8,291 | ) |  | - |  |  | (8,291 | )
Deferred tax liabilities |  | (29,121 | ) |  | 1,951 |  |  | (27,170 | )
Fair value of assets and liabilities on acquisition | $ | 205,885 |  | $ | - |  | $ | 205,885 |
DNI [Member] | Customer Relationships [Member] |
Business Acquisition [Line Items] |
Impact Of Reversal On Condensed Consolidated Statement Of Operations |
|  | Three and
|  | nine months
|  | ended
|  | March 31,
|  | 2019
Reversal of intangible asset amortization - decrease depreciation and amortization | $ | 506
Deferred tax impact related to reversal of intangible asset amortization - decrease income tax benefit |  | 142
Increase in non-controlling interest | $ | 164

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