Intangible Assets

12 Months Ended

Dec. 31, 2013

(7) Intangible Assets

Intangible Assets with Indefinite Lives

The following table presents the net carrying amount of the Company's intangible assets with indefinite lives as of December 31, 2013 and 2012, as well as the changes in the net carrying amounts for the years ended December 31, 2013 and 2012 by segment:



	Goodwill
	U.S.		Europe (1)		Other International (2)		Total
	(In thousands)
Balance as of January 1, 2012:
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

Acquisitions		12,306		199		327		12,832
Purchase price adjustments		683		—		2		685
Foreign currency translation adjustments		—		579		38		617

Balance as of December 31, 2012:
Gross balance	$	268,454	$	64,142	$	3,103	$	335,699
Accumulated impairment loss		—		(50,003)		—		(50,003)
	$	268,454	$	14,139	$	3,103	$	285,696

Acquisitions		13,316		97,929		—		111,245
Purchase price adjustments		29		—		141		170
Allocation adjustment		6,640		(6,860)		220		—
Foreign currency translation adjustments		—		7,552		(172)		7,380

Balance as of December 31, 2013:
Gross balance	$	288,439	$	162,763	$	3,292	$	454,494
Accumulated impairment loss		—		(50,003)		—		(50,003)
	$	288,439	$	112,760	$	3,292	$	404,491

____________


(1)	The Europe segment is comprised of the Company’s operations in U.K. and Germany.

(2)	The Other International segment is comprised of the Company’s operations in Mexico and Canada.



	Trade Name: indefinite-lived
	U.S.		Europe		Total
	(In thousands)
Balance as of January 1, 2012	$	200	$	3,098	$	3,298
Foreign currency translation adjustments		—		133		133
Balance as of December 31, 2012	$	200	$	3,231	$	3,431
Acquisitions		—		513		513
Reclassification to definite-lived trade name		—		(3,298)		(3,298)
Foreign currency translation adjustments		—		114		114
Balance as of December 31, 2013	$	200	$	560	$	760

Intangible Assets with Definite Lives

The following is a summary of the Company's intangible assets that were subject to amortization:



	December 31, 2013						December 31, 2012
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(In thousands)						(In thousands)
Customer and branding contracts/relationships	$	276,140	$	(149,645)	$	126,495	$	212,509	$	(125,920)	$	86,589
Deferred financing costs		15,038		(5,466)		9,572		9,169		(4,373)		4,796
Exclusive license agreements		23,154		(14,693)		8,461		18,724		(12,543)		6,181
Non-compete agreements		4,075		(2,437)		1,638		2,822		(1,246)		1,576
Technology		2,827		(775)		2,052		—		—		—
Trade name: definite-lived		13,164		(527)		12,637		—		—		—
Total	$	334,398	$	(173,543)	$	160,855	$	243,224	$	(144,082)	$	99,142

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 ten years for exclusive license agreements, one to five years for non-compete agreements, and one to fifteen years for finite-lived trade names. Estimated useful life for acquired technology is three years. 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 definite-lived intangible assets is recorded in the amortization expense line item in the Consolidated Statements of Operations, including any impairment charges, except for deferred financing costs and certain exclusive license agreements. Amortization of deferred financing costs is recorded in the Consolidated Statements of Operations combined with amortization of note discount. Certain exclusive license agreements that were effectively prepayments of merchant fees were amortized through the cost of ATM operating revenues line item during the year ended December 31, 2013 and 2012, for $4.0 million and $1.9 million, respectively. The Company recorded approximately $0.1 million in additional amortization expense during the year ended December 31, 2011 related to the impairments of certain previously acquired merchant contract/relationship intangible assets associated with its U.S. reporting segment. No additional amortization was recorded during the years ended December 31, 2013 and 2012.

The components of intangible assets acquired during the year ended December 31, 2013 were as follows:



	Amount Acquired in 2013		Weighted Average Amortization Period
	(In thousands)
Customer and branding contracts/relationships	$	62,800	7.0 years
Non-compete agreements		1,284	2.5 years
Technology		2,852	3.0 years
Trade name: definite-lived		9,867	14.8 years
Total	$	76,803

Estimated amortization for the Company’s intangible assets with definite lives for each of the next five years, and thereafter is as follows (amounts in thousands):



2014	$	34,695
2015		32,205
2016		26,835
2017		22,519
2018		17,050
Thereafter		27,551
Total	$	160,855

- 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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