ACCURAY INC Goodwill & Intangibles Disclosure
Note 5. Goodwill and Purchased Intangible Assets
Goodwill
The Company's carrying amount of its goodwill is as follows (in thousands):
|
|
As of June 30, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Balance at the beginning of the period |
|
$ |
57,681 |
|
|
$ |
57,840 |
|
Currency translation adjustment |
|
|
(9 |
) |
|
|
(159 |
) |
Balance at the end of the period |
|
$ |
57,672 |
|
|
$ |
57,681 |
|
The Company performed its annual goodwill impairment test in the second quarter of fiscal year 2024 and determined that there was no impairment to goodwill. In the third quarter of fiscal year 2024, the Company determined that its decline in cash flows and a downward adjustment to the fiscal year 2024 annual guidance constituted triggering events for the impairment of goodwill, and it determined that there was no impairment to goodwill as of March 31, 2024. In the fourth quarter of fiscal
year 2024, the Company determined that the triggering events present at March 31, 2024, were still present at June 30, 2024. The Company performed an interim goodwill impairment test and it determined that there was no impairment to goodwill as of June 30, 2024. The Company will continue to monitor its recorded goodwill for indicators of impairment every fiscal quarter.
Purchased Intangible Assets
The Company’s carrying amount of acquired intangible assets, net, consisted of the following (in thousands):
|
|
As of June 30, 2024 |
|
|
As of June 30, 2023 |
|
||||||||||||||||||
|
|
Gross |
|
|
Accumulated |
|
|
Net |
|
|
Gross |
|
|
Accumulated |
|
|
Net |
|
||||||
Patent license |
|
$ |
1,000 |
|
|
$ |
(1,000 |
) |
|
$ |
- |
|
|
$ |
1,000 |
|
|
$ |
(893 |
) |
|
$ |
107 |
|
Other intangibles |
|
|
132 |
|
|
|
(73 |
) |
|
|
59 |
|
|
|
132 |
|
|
|
(29 |
) |
|
|
103 |
|
Total intangible assets |
|
$ |
1,132 |
|
|
$ |
(1,073 |
) |
|
$ |
59 |
|
|
$ |
1,132 |
|
|
$ |
(922 |
) |
|
$ |
210 |
|
The Company did not identify any triggering events that would indicate potential impairment of its definite‑lived intangible and long‑lived assets as of June 30, 2024, and 2023.
Amortization expense related to purchased intangible assets during the years ended June 30, 2024, 2023, and 2022, was $0.2 million, $0.2 million and $0.1 million, respectively.
The estimated future amortization expense of purchased intangible assets as of June 30, 2024 is as follows (in thousands):
Year Ending June 30, |
|
Amount |
|
|
2025 |
|
$ |
44 |
|
2026 |
|
|
15 |
|
Total estimated future amortization expense |
|
$ |
59 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Sep 19, 2024 | Showing above |
| 2023 | Sep 7, 2023 | |
| 2022 | Aug 17, 2022 | |
| 2021 | Aug 17, 2021 | |
| 2020 | Aug 25, 2020 | |
| 2019 | Aug 23, 2019 | |
| 2018 | Aug 24, 2018 | |
| 2017 | Aug 25, 2017 | |
| 2016 | Aug 24, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.