Goodwill and Acquired Intangible Assets, Net (Note)

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND ACQUIRED INTANGIBLE ASSETS, NET

Goodwill and Acquired Intangible Assets, Net

Goodwill represents the excess of the purchase price of the acquired business over the estimated fair value of the underlying net tangible and intangible assets acquired. The following table summarizes intangible assets as of December 31, 2018 and 2017:



	As of December 31, 2018					As of December 31, 2017
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Customer relationships	$	199,581	$	(133,863	)	$	207,133	$	(124,967	)
Trademarks and trade names	45,233		(25,837		)	56,273		(25,768		)
Software	58,515		(29,420		)	62,384		(25,142		)
Non-compete agreements	2,076		(1,800		)	3,895		(3,265		)
Total	$	305,405	$	(190,920	)	$	329,685	$	(179,142	)

The following table summarizes the goodwill and amortizable intangible assets activity for the years ended December 31, 2018 and 2017:



(in thousands)	Acquired Intangible Assets			Goodwill			Total Intangible Assets
Balance as of January 1, 2017	$	165,331		$	689,713		$	855,044
Increases (decreases):
Impairment	(2,286		)	(31,770		)	(34,056		)
Amortization	(24,527		)	—			(24,527		)
Other (primarily changes in foreign currency exchange rates)	12,025			59,443			71,468
Balance as of December 31, 2017	150,543			717,386			867,929
Increases (decreases):
Acquisitions	—			20,742			20,742
Impairment	(7,049		)	—			(7,049		)
Amortization	(22,562		)	—			(22,562		)
Other (primarily changes in foreign currency exchange rates)	(6,447		)	(33,931		)	(40,378		)
Balance as of December 31, 2018	$	114,485		$	704,197		$	818,682

The Company performs its annual goodwill impairment test during the fourth quarter of each year. The annual goodwill impairment test completed during the fourth quarter of 2018 resulted in no impairment charges. During the fourth quarter of 2018, the Company recorded a $7.0 million non-cash impairment charge for acquired intangible assets, specifically the HiFX trade name, related to rebranding the HiFX business to xe.

Of the total goodwill balance of $704.2 million as of December 31, 2018, $467.6 million relates to the Money Transfer Segment, $130.9 million relates to the epay Segment and the remaining $105.7 million relates to the EFT Processing Segment. Amortization expense for intangible assets with finite lives was $22.6 million, $24.5 million and $25.5 million for the years ended December 31, 2018, 2017 and 2016, respectively. Estimated annual amortization expense, before income taxes, on intangible assets with finite lives as of December 31, 2018, is expected to total $20.5 million for 2019, $19.7 million for 2020, $18.8 million for 2021, $17.8 million for 2022 and $13.1 million for 2023.

- 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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