GOODWILL
Goodwill is recorded when the consideration paid for an acquisition of a business exceeds the fair value of identifiable net tangible and intangible assets. The following table summarizes the changes in goodwill since June 30, 2018:
Balance as at June 30, 2018
$
3,580,129

Acquisition of Catalyst (note 19)
30,973

Acquisition of Liaison (note 19)
163,592

Adjustments on account of foreign exchange
(4,786
)
Balance as of June 30, 2019
3,769,908

Acquisition of XMedius (note 19)
49,633

Acquisition of Carbonite (note 19)
853,162

Acquisition of The Fax Guys (note 19)
1,951

Adjustments relating to acquisitions prior to Fiscal 2020 that had open measurement periods (note 19)
1,476

Adjustments on account of foreign exchange
(3,774
)
Balance as of June 30, 2020
$
4,672,356


Free Sentinel

Want the next OPEN TEXT CORP goodwill & intangibles disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment OPEN TEXT CORP's next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2020Aug 6, 2020Showing above
2019Aug 1, 2019
2018Aug 2, 2018
2017Aug 3, 2017
2016Jul 27, 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.