Goodwill & Intangible Assets, Net

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

All goodwill is in the Europe segment. The changes in goodwill for the years ended December 31, 2016 and 2015 were:



	Goodwill
	(in thousands)
Gross goodwill at January 1, 2015	$	2,382
Accumulated impairments	(338		)
Net goodwill at January 1, 2015	2,044
Foreign currency translation	(71		)
Net goodwill at December 31, 2015	1,973
Foreign currency translation	(62		)
Impairment ⁽¹⁾	(431		)
Net goodwill at December 31, 2016 ⁽²⁾	$	1,480

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⁽¹⁾	During the year ended we recognized impairment of goodwill in our Belgian retail business, due to declining business performance.


⁽²⁾	In December 2016, the Company completed its purchase accounting for the June 2016 acquisition of operations in Austria and concluded the acquisition did not result in goodwill.

For further information related to the goodwill impairment, see Note 7 — Fair Value Measurements.

Intangible Assets, Net

Other intangible assets consist of the following:



		December 31, 2016							December 31, 2015
	Useful Life	Gross		Accum. Amortiz.			Net		Gross		Accum. Amortiz.			Net
	(Years)	(in thousands)
Intangible assets subject to amortization:
Capitalized software ⁽¹⁾	2 - 7	$	142,358	$	(74,530	)	$	67,828	$	162,700	$	(82,596	)	$	80,104
Patents, copyrights and trademarks	6 - 25	6,438		(5,471		)	967		6,892		(5,135		)	1,757
Other	*	2,855		(2,855		)	—		8,290		(8,151		)	139
Intangibles not subject to amortization:
In progress ⁽²⁾		3,616		—			3,616		—		—			—
Trademarks and other ⁽³⁾		289		—			289		297		—			297
Total		$	155,556	$	(82,856	)	$	72,700	$	178,179	$	(95,882	)	$	82,297

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⁽¹⁾

Gross carrying amount at December 31, 2016 includes $0.8 million of software held under a capital lease classified as capitalized software as of December 31, 2016, and $4.1 million as of December 31, 2015. Accumulated amortization includes $0.8 million and $3.1 million for software held under a capital lease as of December 31, 2016, and December 31, 2015, respectively, and is amortized using the straight-line method over the useful life.

⁽²⁾ Primarily capitalized software project costs under development.

⁽³⁾Change due to foreign currency translation.

As of December 31, 2016, estimated future annual amortization expense of intangible assets is:



	Amortization
	(in thousands)
2017	$	17,812
2018	15,819
2019	13,452
2020	10,698
2021	10,366
Thereafter	648
Total	$	68,795

During the years ended December 31, 2016, 2015, and 2014, total amortization expense was $19.0 million, $19.7 million and $14.2 million, of which $5.1 million, $5.8 million and $4.9 million, respectively, was reported in 'Cost of sales', with the remainder in 'Selling, general and administrative expenses' in the consolidated statements of operations. At December 31, 2016, the weighted average remaining useful life of intangibles subject to amortization was approximately 6.5 years.

- 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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