Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Other Intangible Assets

7. Goodwill and Other Intangible Assets

The Company’s goodwill at December 31, 2015 and 2014 relates to the U.S. Debit and Credit and U.K. Limited reporting segments.

Goodwill activity is summarized as follows:


Balance as of January 1, 2014	$	40,818
EFT Acquisition		33,619
Currency translation		(636)
Balance as of December 31, 2014	$	73,801
Currency translation		(678)
Balance as of December 31, 2015	$	73,123

The Company completed its evaluation of the carrying value of goodwill as of October 1, 2015 and 2014 and determined there was no impairment to the recorded value of goodwill. In order to identify potential impairments, CPI compared the fair value of its reporting units with their carrying amounts, including goodwill. As the fair value of the reporting units exceeded their carrying amounts, the Company was not required to complete the second step of the process which would measure the amount of any impairment.

CPI’s intangible assets consist of customer relationships, technology and software, non-compete agreements, favorable leases and trademarks. Total intangible assets are being amortized over a weighted-average useful life of 16 years. Intangible amortization expense totaled $4,577, $2,893 and $2,035, for the years ended December 31, 2015, 2014 and 2013, respectively.

Intangible assets consist of the following:


		December 31, 2015						December 31, 2014
	Average			Accumulated		Net Book				Accumulated		Net Book
	Life (Years)	Cost		Amortization		Value		Cost		Amortization		Value
Customer relationships	12 to 20	$	59,612	$	(17,747)	$	41,865	$	59,871	$	(14,304)	$	45,567
Technology and software	7 to 10		7,101		(1,238)		5,863		7,101		(310)		6,791
Noncompete agreements	5 to 8		491		(270)		221		491		(198)		293
Favorable leases	9.5		111		(101)		10		111		(88)		23
Intangible assets subject to amortization			67,315		(19,356)		47,959		67,574		(14,900)		52,674
Trademarks (indefinite-lived)			6,029		—		6,029		6,029		—		6,029
		$	73,344	$	(19,356)	$	53,988	$	73,603	$	(14,900)	$	58,703

The estimated future aggregate amortization expense for the identified amortizable intangibles noted above as of December 31, 2015 is as follows:


2016	$	4,572
2017		4,561
2018		4,548
2019		4,548
2020		4,548
Thereafter		25,182
	$	47,959

- 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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