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Goodwill And Intangible Assets, Net | 6 Months Ended
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Dec. 31, 2019
Goodwill And Intangible Assets, Net [Abstract] |
Goodwill And Intangible Assets, Net | 8. Goodwill and intangible assets, net Goodwill Impairment loss The Company assesses the carrying value of goodwill for impairment annually, or more frequently, whenever events occur and circumstances change indicating potential impairment. The Company performs its annual impairment test as of June 30 of each year. Dur ing the three and six months ended December 31, 2018, the Company recognized an impairment loss of approximately $8.2 million, of which approximately $7.0 million related to goodwill allocated to its International Payment Group (“IPG”) business within its internat ional transaction processing operating segment and $1.2 million related to goodwill within its South African transaction processing operating segment. Given the consolidation and restructuring of IPG during the period up to December 31, 2018, several business lines were termin ated or meaningfully reduced, resulting in lower than expected revenues, profits and cash flows. IPG’s new business initiatives are still in their infancy, and it is expected to generate lower cash flows than initially forecast. In order to determine the a mount of goodwill impairment, the estimated fair value of the Company’s IPG business assets and liabilities were compared to the carrying value of IPG’s assets and liabilities. The Company used a discounted cash flow model in order to determine the fai r value of IPG. The allocation of the fair value of IPG required the Company to make a number of assumptions and estimates about the fair value of assets and liabilities where the fair values were not readily available or observable. Based on this analysis, the Company determined that the carrying value of IPG’s assets and liabilities exceeded their fair value at the reporting date. In the event that there is a deterioration in the South African transaction processing and the international transaction proc essing operating segments, or in any other of the Company’s businesses, this may lead to additional impairments in future periods. Summarized below is the movement in the carrying value of goodwill for the six months ended December 31, 2019:
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Gross value |  |  | Accumulated impairment |  |  | Carrying value |
| Balance as of June 30, 2019 |  | $ | 184 544 |  | $ | (35 157) |  | $ | 149 387 |
|  |  |  | Disposal of FIHRST (Note 2) |  |  | (599) |  |  | - |  |  | (599) |
|  |  |  | Foreign currency adjustment (1) |  |  | 122 |  |  | 28 |  |  | 150 |
|  |  | Balance as of December 31, 2019 |  | $ | 184 067 |  | $ | (35 129) |  | $ | 148 938 |
|  | (1) – The foreign currency adjustment represents the effects of the fluctuations between the South African rand, the Euro |
|  | and the Korean won, and the U.S. dollar on the carrying value. |
|  |  |  |  |  |  |  |  |  |  |  | South African transaction processing |  |  | International transaction processing |  |  | Financial inclusion and applied technologies |  |  | Carrying value |
| Balance as of June 30, 2019 |  | $ | 19 208 |  | $ | 112 728 |  | $ | 17 451 |  | $ | 149 387 |
|  |  |  | Disposal of FIHRST (Note 2) |  |  | (599) |  |  | - |  |  | - |  |  | (599) |
|  |  |  | Foreign currency adjustment (1) |  |  | 23 |  |  | 83 |  |  | 44 |  |  | 150 |
|  |  | Balance as of December 31, 2019 |  | $ | 18 632 |  | $ | 112 811 |  | $ | 17 495 |  | $ | 148 938 |
|  | (1) – The foreign currency adjustment represents the effects of the fluctuations between the South African rand, the Euro |
|  | and the Korean won, and the U.S. dollar on the carrying value. |
8. Goodwill and intangible assets, net 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, 2019 and June 30, 2019:
|  |  |  |  | As of December 31, 2019 |  | As of June 30, 2019 |
|  |  |  |  |  | Gross carrying value |  |  | Accumulated amortization |  |  | Net carrying value |  |  | Gross carrying value |  |  | Accumulated amortization |  |  | Net carrying value |
| Finite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Customer relationships | $ | 95 792 |  | $ | (89 273) |  | $ | 6 519 |  | $ | 96 653 |  | $ | (86 285) |  | $ | 10 368 |
|  | Software and unpatented |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | technology |  | 28 883 |  |  | (28 598) |  |  | 285 |  |  | 32 071 |  |  | (31 829) |  |  | 242 |
|  | FTS patent |  | 2 727 |  |  | (2 727) |  |  | - |  |  | 2 721 |  |  | (2 721) |  |  | - |
|  | Trademarks |  | 6 784 |  |  | (6 307) |  |  | 477 |  |  | 6 772 |  |  | (6 265) |  |  | 507 |
|  | Total finite-lived intangible assets |  | 134 186 |  |  | (126 905) |  |  | 7 281 |  |  | 138 217 |  |  | (127 100) |  |  | 11 117 |
| Infinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Financial institution licenses |  | 762 |  |  | - |  |  | 762 |  |  | 772 |  |  | - |  |  | 772 |
|  | Total infinite-lived intangible assets |  | 762 |  |  | - |  |  | 762 |  |  | 772 |  |  | - |  |  | 772 |
|  |  | Total intangible assets | $ | 134 948 |  | $ | (126 905) |  | $ | 8 043 |  | $ | 138 989 |  | $ | (127 100) |  | $ | 11 889 |
Aggregate amortization expense on the finite-lived intangible assets for the three months ended December 31, 2019 and 2018, was approximately $1,9 million and $6,1 million, respectively. Aggregate amortization expense on the finite-lived intangible assets for the six months ended December 31, 2019 and 2018, was approximately $3,8 million and $12,2 million, respec tively. 8. Goodwill and intangible assets, net Intangible assets (continued) Carrying value and amortization of intangible assets (continued) Future estimated annual amortization expense for the next five fiscal years and thereafter, assumin g exchange rates that prevailed on December 31, 2019, 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.
| Fiscal 2020 |  | $ | 7 919 |
| Fiscal 2021 |  |  | 2 807 |
| Fiscal 2022 |  |  | 73 |
| Fiscal 2023 |  |  | 73 |
| Fiscal 2024 |  |  | 72 |
| Thereafter |  |  | 145 |
|  | Total future estimated annual amortization expense |  |  |  |  |  |  |  |  | $ | 11 089 |

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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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