GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 5: GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying amount of goodwill for the six months ended December 31, 2022 are as follows:


(in 000s)
	Goodwill		Accumulated Impairment Losses		Net
Balances as of July 1, 2022	$	898,698	$	(138,297)	$	760,401

Acquisitions	19,448		—		19,448
Disposals and foreign currency changes, net	(15,047)		—		(15,047)
Impairments	—		—		—
Balances as of December 31, 2022	$	903,099	$	(138,297)	$	764,802

We test goodwill for impairment annually as of February 1, or more frequently if events occur or circumstances change which would, more likely than not, reduce the fair value of a reporting unit below its carrying value.

Components of intangible assets are as follows:


(in 000s)
	Gross Carrying Amount		Accumulated Amortization		Net
As of December 31, 2022:
Reacquired franchise rights	$	390,631	$	(204,396)	$	186,235
Customer relationships	347,333		(289,397)		57,936
Internally-developed software	139,528		(118,272)		21,256
Noncompete agreements	42,413		(38,604)		3,809
Franchise agreements	19,201		(18,028)		1,173
Purchased technology	122,700		(92,340)		30,360
Trade name	5,800		(2,030)		3,770
	$	1,067,606	$	(763,067)	$	304,539










As of June 30, 2022:
Reacquired franchise rights	$	379,114	$	(197,068)	$	182,046
Customer relationships	331,020		(278,717)		52,303
Internally-developed software	137,638		(107,111)		30,527
Noncompete agreements	41,789		(37,684)		4,105
Franchise agreements	19,201		(17,388)		1,813
Purchased technology	122,700		(87,910)		34,790
Trade name	5,800		(1,740)		4,060

	$	1,037,262	$	(727,618)	$	309,644

We made payments to acquire businesses totaling $39.8 million and $19.3 million during the six months ended December 31, 2022 and 2021, respectively. The amounts and weighted-average lives of intangible assets acquired during the six months ended December 31, 2022, including amounts capitalized related to internally-developed software, are as follows:


(dollars in 000s)
	Amount		Weighted-Average Life (in years)
Internally-developed software	$	2,082	2
Customer relationships	17,765		5
Reacquired franchise rights	11,659		5
Noncompete agreements	667		5
Total	$	32,173	5

Amortization of intangible assets for the three and six months ended December 31, 2022 was $18.5 million and $36.9 million, respectively, compared to $19.4 million and $39.2 million for the three and six months ended December 31, 2021, respectively. Estimated amortization of intangible assets for fiscal years ending June 30, 2023, 2024, 2025, 2026, and 2027 is $71.4 million, $53.6 million, $31.4 million, $22.7 million and $16.9 million, respectively.