Goodwill and Intangible Assets, Net

12 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

GOODWILL AND INTANGIBLE ASSETS, NET

Changes in Goodwill for the fiscal years ended June 30, 2023 and 2022 are as follows:

	Investor Communication Solutions		Global Technology and Operations		Total
	(in millions)
Goodwill, gross, at June 30, 2021	$	1,056.1	$	2,664.0	$	3,720.1
Additions	—		10.1		10.1
Foreign currency translation and other	(12.4)		(230.7)		(243.1)
Fair value adjustments (a)	—		(2.3)		(2.3)
Accumulated impairment losses	—		—		—
Goodwill, net, at June 30, 2022	$	1,043.7	$	2,441.2	$	3,484.9
Goodwill, gross, at June 30, 2022	$	1,043.7	$	2,441.2	$	3,484.9
Additions	—		—		—
Foreign currency translation and other	(0.9)		(22.4)		(23.3)
Fair value adjustments (a)	—		—		—
Accumulated impairment losses	—		—		—
Goodwill, net, at June 30, 2023	$	1,042.8	$	2,418.8	$	3,461.6

_________

(a) Fair value adjustments includes adjustments to goodwill as part of finalization of the purchase price allocations.

During fiscal years 2023, 2022 and 2021, the Company performed the required impairment tests of Goodwill and determined that there was no impairment. The Company also performs a sensitivity analysis under Step 1 of the goodwill impairment test assuming hypothetical reductions in the fair values of the reporting units. A 10% change in our estimates of projected future operating cash flows, discount rates, or terminal value growth rates, which are the most significant estimates used in our calculations of the fair values of the reporting units, would not result in an impairment of our goodwill.

Intangible assets at cost and accumulated amortization at June 30, 2023 and 2022 are as follows:

	June 30,
	2023						2022
	Original Cost		Accumulated Amortization		Intangible Assets, net		Original Cost		Accumulated Amortization		Intangible Assets, net
	(in millions)
Software licenses	$	183.7	$	(154.2)	$	29.5	$	199.2	$	(153.3)	$	45.9
Acquired software technology	292.4		(165.5)		126.9		397.6		(211.3)		186.3
Customer contracts and lists	1,150.8		(558.5)		592.4		1,273.0		(519.0)		754.0
Acquired intellectual property	136.6		(136.6)		—		136.6		(131.9)		4.7
Internal use software	762.9		(44.8)		718.1		131.2		(45.4)		85.8
Other intangibles	23.7		(23.3)		0.4		23.1		(22.6)		0.4
	$	2,550.2	$	(1,082.9)	$	1,467.2	$	2,160.7	$	(1,083.6)	$	1,077.1

All of the intangible assets have finite lives and as such, are subject to amortization.

During the fourth quarter of fiscal year 2023, the Company executed a non-exclusive amended services contract and substantially completed the development of the related software platform customized for our client. In connection with the substantial completion of the platform and execution of the amended services agreement, the Company also developed a substantive plan to market the platform to other prospective clients as a service. As a result, $622.3 million of Deferred client conversion and start-up costs were reclassified to Internal use software within Intangible assets, net on the Company’s Consolidated Balance Sheet, which contributed to the increase in Internal use software as of June 30, 2023. Refer to Note 11, “Deferred Client Conversion and Start-Up Costs” for a further discussion regarding the Company’s Intangible assets.

The weighted-average remaining useful life of the intangible assets is as follows:

	Weighted-Average Remaining Useful Life (Years)
Acquired software technology	2.4
Software licenses	3.0
Customer contracts and lists	4.3
Internal use software	17.9
Other intangibles	1.2
Total weighted-average remaining useful life	10.8

Expenditures for major software purchases and software developed or obtained for internal use are capitalized and amortized on a straight-line basis generally over a three- to five-year period or another period deemed appropriate based on the specific characteristics of the software, considering the potential impact of obsolescence, speed of technology changes, competition, and other economic factors.

Amortization of intangibles for the years ended June 30, 2023, 2022 and 2021 was as follows:

	Years ended June 30,
	2023		2022		2021
	(in millions)
Amortization expense for intangible assets	$	257.6	$	289.3	$	182.3

Estimated remaining amortization expenses of the Company’s existing intangible assets for the next five fiscal years and thereafter are as follows:

Years Ending June 30,	(in millions)
2024	$	284.5
2025	251.8
2026	219.0
2027	129.0
2028	116.1
Thereafter	466.7
Total	$	1,467.2