XML 20 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
Goodwill and Intangible Assets
 9 Months Ended
Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets GOODWILL AND INTANGIBLE ASSETS

The Company records goodwill when an acquisition is made and the purchase price is greater than the fair value assigned to the underlying tangible and intangible assets acquired and the liabilities assumed. The Company’s goodwill is allocated to reporting units as follows:
(in thousands)
September 30, 2018
 
December 31, 2017
Consumer Payments
$
106,832

 
$
101,532

Commercial Payments and Managed Services
2,534

 
—

 
$
109,366

 
$
101,532



The Company’s intangible assets primarily include merchant portfolios and other intangible assets such as non-compete agreements, trade names, acquired technology (developed internally by acquired companies prior to acquisition by the Company) and customer relationships.

The following table summarizes the changes in the carrying amount of goodwill for the three quarters ended September 30, 2018:
(in thousands)
Total
Balance at December 31, 2017
$
101,532

Goodwill acquired from business combinations:
 
  PayRight
298

  RadPad/Landlord Station
2,236

  PPS Northeast
1,920

  PPS Tech
3,380

Balance at September 30, 2018
$
109,366



As of September 30, 2018 and December 31, 2017 intangible assets consisted of the following:
(in thousands)
September 30, 2018
 
December 31, 2017
Other intangible assets:
 
 
 
Merchant portfolios
$
77,998

 
$
46,716

Non-compete agreements
3,390

 
3,390

Tradename
2,870

 
2,580

Acquired technology
14,390

 
13,200

Customer relationships
51,090

 
51,090

 
149,738

 
116,976

Less accumulated amortization:
 
 
 
Merchant portfolios
(44,888
)
 
(41,915
)
Non-compete agreements
(3,390
)
 
(3,243
)
Trade names
(953
)
 
(776
)
Acquired technology
(9,642
)
 
(7,928
)
Customer relationships
(25,286
)
 
(21,052
)
 
(84,159
)
 
(74,914
)
 
$
65,579

 
$
42,062


 
Amortization expense for finite-lived intangible assets was $3.8 million and $9.3 million for the quarter and three quarters ended September 30, 2018, respectively, and $2.5 million and $8.0 million for the comparable periods in 2017, respectively. Actual amortization expense to be reported in future periods could differ from these estimates as a result of new intangible asset acquisitions, changes in useful lives, and other relevant events or circumstances.

The Company tests goodwill for impairment for each of its reporting units on an annual basis, or when events occur or circumstances indicate the fair value of a reporting unit is below its carrying value. The Company will perform its annual goodwill impairment test as of November 30, 2018 using market data and discounted cash flow analysis. The Company concluded there were no indicators of impairment as of September 30, 2018 or December 31, 2017. As such, there was no accumulated impairment loss as of September 30, 2018 and December 31, 2017.