XML 36 R16.htm IDEA: XBRL DOCUMENT
v3.21.2

Goodwill And Intangible Assets, Net | 12 Months Ended
--- | ---
Jun. 30, 2021
Goodwill And Intangible Assets, Net [Abstract] |
Goodwill And Intangible Assets, Net | 9. GOODWILL AND INTANGIBLE ASSETS , net Goodwill Summarized below is the movement in the carrying value of goodwill for the years ended June 30, 2021, 2020 and 2019: Gross value Accumulated impairment Carrying value Balance as of July 1, 2018 $ 73,572 $ (20,773) $ 52,799 Impairment loss - (14,440) (14,440) Foreign currency adjustment (1) (1,099) 56 (1,043) Balance as of June 30, 2019 72,473 (35,157) 37,316 Impairment loss - (5,589) (5,589) Disposal of FIHRST (Note 23) (599) - (599) Deconsolidation of CPS (Note 23) (1,346) 1,346 - Foreign currency adjustment (1) (7,334) 375 (6,959) Balance as of June 30, 2020 63,194 (39,025) 24,169 Liquidation of subsidiaries (2) (26,629) 26,629 - Foreign currency adjustment (1) 6,384 (1,400) 4,984 Balance as of June 30, 2021 $ 42,949 $ (13,796) $ 29,153 (1) – The foreign currency adjustment represents the effects of the fluctuations between the South African Rand and the Euro, and the U.S. dollar on the carrying value. (2) – The Company deconsolidated the goodwill and accumulated impairment related to entities it substantially liquidated during the year ended June 30, 2021. 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 at June 30 of each year. Year ended June 30, 2021 The Company did no t impair any goodwill during the year ended June 30, 2021. 9. GOODWILL AND INTANGIBLE ASSETS , net (continued) Goodwill (continued) Impairment loss (continued) Year ended June 30, 2020 (continued) During the third quarter of fiscal 2020, the Company performed an impairment analysis and recognized an impairment loss of $ 5.6 million, related to goodwill allocated to its EasyPay business within its South African transaction processing operating segment. The impairment loss resulted from a reassessment of the business’s growth prospects given the challenging economic environment in South Africa. The impairment is included within the caption impairment loss in the consolidated statement of operations for the year ended June 30, 2020. In order to determine the amount of the EasyPay goodwill impairment, the estimated fair value of EasyPay’s business assets and liabilities were compared to the carrying value of its assets and liabilities. The Company used a discounted cash flow model in order to determine the fair value of EasyPay. Based on this analysis, the Company determined that the carrying value of EasyPay’s assets and liabilities exceeded their fair value at the reporting date. Year ended June 30, 2019 During the second quarter of fiscal 2019, the Company performed an impairment analysis and recognized an impairment loss of approximately $ 8.2 million, of which approximately $ 7.0 million related to goodwill allocated to its IPG business within its international 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 over the period to December 31, 2018, several business lines were terminated or meaningfully reduced, resulting in lower than expected revenues, profits and cash flows. IPG’s new business initiatives were still in their infancy, and it was expected to generate lower cash flows than initially forecast. In order to determine the amount of the IPG goodwill impairment, the estimated fair value of the Company’s IPG business assets and liabilities was compared to the carrying value of IPG’s assets and liabilities. The Company used a discounted cash flow model in order to determine the fair 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. The Company also identified and recognized an impairment loss of $ 6.2 million related to goodwill allocated to its financial inclusion and applied technologies operating segment as a result of its June 30, 2019, annual impairment test. The June 2019 impairment loss resulted from on-going losses incurred in the latter half of the fiscal year that were greater than, and were incurred for a longer duration, than initially expected. The estimated fair value of the business assets and liabilities were compared to the carrying value of the assets and liabilities of the reporting unit within the financial inclusion and applied technologies operating segment in order to determine the $ 6.2 million goodwill impairment. The Company used an EV/EBITDA multiple valuation model to determine the fair value of the reporting unit. The allocation of the fair value of the reporting unit 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, except for the impairments recognized, the Company determined that the carrying value of the reporting unit’s assets and liabilities exceeded their fair value at the reporting date. In the event that there is deterioration in the Company’s operating segments, or in any other of the Company’s businesses, this may lead to additional impairments in future periods . 9. GOODWILL AND INTANGIBLE AS SETS , net (continued) Goodwill (continued) Refer to Note 20 for additional information regarding changes to the Company’s reportable segments during the year ended June 30, 2021. Goodwill has been allocated to the Company’s reportable segments as follows: Processing Financial services Technology Carrying value Balance as of July 1, 2018 $ 28,614 $ - $ 24,185 $ 52,799 Impairment loss (8,191) - (6,249) (14,440) Foreign currency adjustment (1) (558) - (485) (1,043) Balance as of June 30, 2019 19,865 - 17,451 37,316 Impairment loss (5,589) - - (5,589) Disposal of FIHRST (Note 23) (599) (599) Foreign currency adjustment (1) (3,688) - (3,271) (6,959) Balance as of June 30, 2020 9,989 - 14,180 24,169 Foreign currency adjustment (1) 1,978 - 3,006 4,984 Balance as of June 30, 2021 $ 11,967 $ - $ 17,186 $ 29,153 (1) – The foreign currency adjustment represents the effects of the fluctuations between the South African rand and the Euro, and the U.S. dollar on the carrying value. Intangible assets Impairment loss The Company assesses the carrying value of intangible assets for impairment whenever events occur or circumstances change indicating that the carrying amount of the intangible asset may not be recoverable. Except as discussed below, no intangible assets have been impaired during the years ended June 30, 2021, 2020 and 2019, respectively. Year ended June 30, 2020 During the third quarter of fiscal 2020 , the Company determined that its indefinite-lived intangible asset, a Maltese e-money license, of $ 0.7 million was impaired. The facts and circumstances leading up to the impairment include the losses incurred by the Company’s IPG business unit. In fiscal 2019, IPG formulated a plan to return to profitability, however, it missed a number of key deliverable deadlines and was reformulating its growth plans following the decision not to acquire a controlling stake in Bank Frick. The impairment is included within the caption impairment loss to the consolidated statement of operations for the year ended June 30, 2020 . The intangible asset was not allocated to an operating segment and is included within corporate/ eliminations (refer to Note 20 ). 9. GOODWILL AND INTANGIBLE ASSETS , net Intangible assets (continued) Carrying value and amortization of intangible assets Summarized below is the carrying value and accumulated amortization of the intangible assets as of June 30, 2021, and June 30, 2020: As of June 30, 2021 As of June 30, 2020 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Finite-lived intangible assets: Customer relationships $ 10,340 $ (10,340) $ - $ 19,064 $ (18,806) $ 258 Software and unpatented technology 1,726 (1,726) - 3,931 (3,931) - FTS patent 2,679 (2,679) - 2,211 (2,211) - Trademarks 2,015 (1,658) 357 2,731 (2,377) 354 Total finite-lived intangible assets $ 16,760 $ (16,403) 357 $ 27,937 $ (27,325) 612 Indefinite-lived intangible assets: Financial institution licenses (1) - - Total indefinite -lived intangible assets - - Total intangible assets $ 357 $ 612 (1) The Company deconsolidated the Malta e-money licence following the substantial liquidation of its Malta business during the year ended June 30, 2021. Aggregate amortization expense on the finite-lived intangible assets for the years ended June 30, 2021, 2020 and 2019, was approximately $ 0.4 million, $ 0.3 million and $ 7.1 , respectively. Future estimated annual amortization expense for the next five fiscal years and thereafter, assuming exchange rates that prevailed on June 30, 2021, 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 2022 $ 72 Fiscal 2023 72 Fiscal 2024 71 Fiscal 2025 71 Fiscal 2026 71 Total future estimated annual amortization expense $ 357

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration