Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2016

Goodwill and Other Intangible Assets

5. Goodwill and Other Intangible Assets

Goodwill relates to the Company’s U.S. Debit and Credit, U.K. Limited and Canada reporting segments. The change in goodwill from December 31, 2015 to March 31, 2016 was a result of currency translation adjustments.

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. The changes in the cost basis of the intangibles from December 31, 2015 to March 31, 2016 are related to foreign currency translations. Intangible amortization expense was $1,140 and $1,144 for the three months ended March 31, 2016 and 2015, respectively.

As of March 31, 2016 and December 31, 2015, intangible assets, excluding goodwill, were comprised of the following:


				March 31, 2016						December 31, 2015
	Average Life					Accumulated		Net Book				Accumulated		Net Book
	(Years)			Cost		Amortization		Value		Cost		Amortization		Value

Customer relationships	12	to	20	$	59,528	$	(18,599)	$	40,929	$	59,612	$	(17,747)	$	41,865
Technology and software	7	to	10		7,101		(1,470)		5,631		7,101		(1,238)		5,863
Non-compete agreements	5	to	8		491		(288)		203		491		(270)		221
Favorable leases		9.5			111		(103)		8		111		(101)		10

Intangible assets subject to amortization					67,231		(20,460)		46,771		67,315		(19,356)		47,959
Trademarks (indefinite-lived)					6,029		—		6,029		6,029		—		6,029
				$	73,260	$	(20,460)	$	52,800	$	73,344	$	(19,356)	$	53,988

The estimated future aggregate amortization expense for the identified amortizable intangibles noted above as of March 31, 2016 is as follows:


2016 (remaining 9 months)	$	3,414
2017		4,545
2018		4,545
2019		4,524
2020		4,484
Thereafter		25,259
	$	46,771

- 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.

+ References + Details