GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Mar. 31, 2014

6. GOODWILL AND INTANGIBLE ASSETS

Intangible assets consist of the following:

		March 31, 2014							June 30, 2013
	Useful Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(dollars in 000s)
Computer software	2 - 5	$	48,895	$	(38,149	)	$	10,746	$	39,484	$	(35,796	)	$	3,688
License rights	3 - 13	16,124		(10,031		)	6,093		12,819		(7,215		)	5,604
Trademarks	5 - 10	9,430		(2,748		)	6,682		2,430		(2,239		)	191
Core technology and content	4 – 18(1)	486,026		(39,864		)	446,162		27,063		(21,887		)	5,176
Customer relationships	7	43,314		(2,214		)	41,100		—		—			—
Contracts	2 - 10	10,943		(10,608		)	335		10,943		(9,766		)	1,177
Other intangibles	3 - 5	2,226		(976		)	1,250		2,548		(808		)	1,740
Total finite lived intangible assets		$	616,958	$	(104,590	)	$	512,368	$	95,287	$	(77,711	)	$	17,576
Trademark	indefinite	7,500		—			7,500		7,500		—			7,500
Total		$	624,458	$	(104,590	)	$	519,868	$	102,787	$	(77,711	)	$	25,076

(1) Includes $46 million of in-process research and development assets that are not yet subject to amortization until they reach commercial feasibility.

On November 25, 2013, the Company completed the Acquisition (see Note 2 to the unaudited condensed consolidated financial statements, Business Combination). At March 31, 2014, there was $494.5 million in net intangible assets related to SHFL.

Finite-lived intangible assets are amortized on a straight-line method. Total amortization expense related to Company’s finite-lived intangible assets was $16.8 million and $2.9 million for the three months ended March 31, 2014 and 2013, respectively, which included computer software amortization expense of $0.9 million and $0.6 million for the three months ended March 31, 2014 and 2013, respectively.

Total amortization expense related to Company’s finite-lived intangible assets was $26.5 million and $8.2 million for the nine months ended March 31, 2014 and 2013, respectively, which included computer software amortization expense of $2.0 million and $1.8 million for the nine months ended March 31, 2014 and 2013, respectively.

The weighted average life of the Company’s total finite-lived intangible assets is 10.1 years, which includes average lives of 10.69 years for core technology and content and 7.0 years for customer relationships. The Company’s indefinite-lived intangible asset of approximately $7.5 million was for one-time consideration given for a perpetual, worldwide license for the use of the Bally trademark in connection with the Company’s business.

Future amortization of finite-lived intangible assets is scheduled as follows:

Year Ended June 30,	(in 000s)
2014 (remaining three months of fiscal year)	$	16,499
2015	62,190
2016	63,840
2017	61,599
2018	59,764
Thereafter	248,476
Total	$	512,368

The changes in the carrying amount of goodwill for the nine months ended March 31, 2014, are as follows:

	(in 000s)
Balance at June 30, 2013	$	172,162
Acquisition of SHFL	821,373
Foreign currency translation adjustment	3,987
Balance at March 31, 2014	$	997,522

No impairment charges for goodwill and intangible assets were necessary for the nine months ended March 31, 2014.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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