Intangible Assets

12 Months Ended

Dec. 31, 2011

(7) Intangible Assets

Intangible Assets with Indefinite Lives. The following table depicts the net carrying amount of the Company's intangible assets with indefinite lives as of December 31, 2009, 2010, and 2011, as well as the changes in the net carrying amounts for the years ended December 31, 2010 and 2011 by segment:


	Goodwill
	U.S.		U.K.			Other International			Total
	(In thousands)
Balance as of January 1, 2010:
Gross balance	$	150,461	$	63,994		$	714		$	215,169
Accumulated impairment loss		—		(50,003	)		—			(50,003	)
	$	150,461	$	13,991		$	714		$	165,166

Foreign currency translation adjustments		—		(601	)		(7	)		(608	)
Balance as of December 31, 2010:
Gross balance	$	150,461	$	63,393		$	707		$	214,561
Accumulated impairment loss		—		(50,003	)		—			(50,003	)
	$	150,461	$	13,390		$	707		$	164,558

Acquisitions		105,004		—			2,044			107,048
Foreign currency translation adjustments		—		(29	)		(15	)		(44	)

Balance as of December 31, 2011:
Gross balance	$	255,465	$	63,364		$	2,736		$	321,565
Accumulated impairment loss		—		(50,003	)		—			(50,003	)
	$	255,465	$	13,361		$	2,736		$	271,562


	Trade Name
	U.S.		U.K.			Total
	(In thousands)
Balance as of January 1, 2010	$	200	$	3,243		$	3,443
Foreign currency translation adjustments		—		(138	)		(138	)
Balance as of December 31, 2010		200		3,105			3,305
Foreign currency translation adjustments		—		(7	)		(7	)
Balance as of December 31, 2011	$	200	$	3,098		$	3,298

Intangible Assets with Definite Lives. The following is a summary of the Company's intangible assets that are subject to amortization as of December 31, 2011 as well as the weighted average remaining amortization period:


	Weighted Average Remaining Amortization Period	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
		(In thousands)
Customer and branding contracts/relationships	5.9	$	211,108	$	(111,823	)	$	99,285
Deferred financing costs	5.8		9,169		(3,479	)		5,690
Exclusive license agreements	3.0		6,569		(4,844	)		1,725
Non-compete agreements	2.4		1,981		(376	)		1,605
Total		$	228,827	$	(120,522	)	$	108,305

The majority of the Company's intangible assets with definite lives are being amortized over the assets' estimated useful lives utilizing the straight-line method. Estimated useful lives range from four to ten years for customer and branding contracts/relationships, two to eight years for exclusive license agreements, and two to four years for non-compete agreements. Deferred financing costs are amortized through interest expense over the contractual term of the underlying borrowings utilizing the effective interest method. The Company periodically reviews the estimated useful lives of its identifiable intangible assets, taking into consideration any events or circumstances that might result in a reduction in fair value or a revision of those estimated useful lives.

Amortization of customer and branding contracts/relationships, exclusive license agreements, and non-compete agreements, including impairment charges, totaled $17.9 million, $15.5 million, and $18.9 million for the years ended December 31, 2011, 2010, and 2009, respectively. The Company recorded approximately $0.1 million, $0.2 million, and $1.2 million in additional amortization expense during the years ended December 31, 2011, 2010, and 2009, respectively, related to the impairments of certain previously acquired merchant contract/relationship intangible assets associated with its United States reporting segment. The $1.2 million impairment charge recorded in 2009 related to the unamortized intangible asset associated with one of the Company's merchants, which was acquired by the Company's United States reporting segment in 2005. The impairment resulted from higher-than-anticipated attrition of sites in this portfolio, stemming from the merchant's decision to divest of the majority of its domestic retail locations. Although this merchant announced its divestiture program in 2007, it was not until the fourth quarter of 2009 that the full impact of the sales and attrition was evident. As a result of the anticipated reduction in future cash flows from the portfolio, the Company concluded in the fourth quarter of 2009 that an impairment of the related contract intangible asset was warranted. It should be noted that the Company received a one-time payment from this merchant in May 2009 totaling $0.8 million relating to certain divestitures made by the merchant in prior periods. At the time, it was determined that the future cash flows under the remaining portfolio of ATMs would be sufficient to recover the carrying value of the related tangible and intangible assets. Accordingly, such amount was recorded as other income in the accompanying Consolidated Statements of Operations. As such, the net amount impacting the Company's consolidated results in 2009 totaled $0.4 million.

Amortization of deferred financing costs and bond discounts totaled $1.0 million, $2.0 million, and $2.4 million for the years ended December 31, 2011, 2010, and 2009, respectively.

Estimated amortization expense for the Company's intangible assets with definite lives for each of the next five years, and thereafter is as follows:


	Customer and Branding Contracts / Relationships		Deferred Financing Costs		Exclusive License Agreements		Non-Compete Agreements		Total
	(In thousands)

2012	$	19,433	$	895	$	770	$	774	$	21,872
2013		18,814		930		509		537		20,790
2014		17,314		969		185		207		18,675
2015		15,250		1,011		172		87		16,520
2016		11,555		829		58		—		12,442
Thereafter		16,919		1,056		31		—		18,006
Total	$	99,285	$	5,690	$	1,725	$	1,605	$	108,305

- 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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