XML 70 R17.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Intangible Assets
 12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets 
Goodwill
The following tables present the net carrying amount of the Company’s intangible assets with indefinite lives as of December 31, 2019 and 2018, as well as the changes in the net carrying amounts for the years ended December 31, 2019 and 2018 by segment:
 
North America
 
Europe & Africa
 
Australia & New Zealand
 
Total
 
(In thousands) 
Goodwill, gross as of December 31, 2018
$
556,570

 
$
231,121

 
$
151,494

 
$
939,185

Accumulated impairment loss
—

 
(50,003
)
 
(140,038
)
 
(190,041
)
Goodwill, net as of December 31, 2018
556,570

 
181,118

 
11,456

 
749,144

 
 
 
 
 
 
 
 
Foreign currency translation adjustments
4,943

 
5,871

 
(63
)
 
10,751

 
 
 
 
 
 
 
 
Goodwill, gross as of December 31, 2019
561,513

 
236,992

 
151,431

 
949,936

Accumulated impairment loss
(7,303
)
 
(50,003
)
 
(140,038
)
 
(197,344
)
Goodwill, net as of December 31, 2019
$
554,210

 
$
186,989

 
$
11,393

 
$
752,592


Intangible Assets with Definite Lives 
The following table presents the Company’s intangible assets that were subject to amortization:
 
December 31, 2019
 
December 31, 2018
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
(In thousands)
Merchant and bank-branding contracts/relationships
$
489,363

 
$
(388,598
)
 
$
100,765

 
$
476,429

 
$
(340,899
)
 
$
135,530

Trade names
18,391

 
(12,792
)
 
5,599

 
18,010

 
(9,804
)
 
8,206

Technology
12,389

 
(7,952
)
 
4,437

 
10,963

 
(6,490
)
 
4,473

Non-compete agreements
4,408

 
(4,408
)
 
—

 
4,247

 
(4,244
)
 
3

Revolving credit facility deferred financing costs
5,256

 
(2,132
)
 
3,124

 
4,170

 
(1,535
)
 
2,635

Total intangible assets with definite lives
$
529,807

 
$
(415,882
)
 
$
113,925

 
$
513,819

 
$
(362,972
)
 
$
150,847


During the year ended December 31, 2019, the Company paid $9.1 million to acquire ATM processing contracts associated with approximately 62,000 ATMs. These intangible assets were recognized as customer/merchant contracts and are being amortized over a 5 year period.
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 merchant and bank-branding contracts/relationships, two to ten years for exclusive license agreements, one to fifteen years for definite-lived trade names, three years for acquired technology, and one to five years for non-compete agreements. Deferred financing costs relating to the revolving credit facility are amortized through interest expense over the contractual term of the revolving credit facility 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 of intangible assets line in the accompanying Consolidated Statements of Operations, except for deferred financing costs related to the revolving credit facility and certain exclusive license agreements. Amortization of the revolving credit facility deferred financing costs is combined with the amortization of note discount related to other debt instruments and is recorded in the Amortization of deferred financing costs and note discount line in the accompanying Consolidated Statements of Operations. Certain exclusive license agreements that were effectively prepayments of merchant fees are amortized through the Cost of ATM operating revenues line in the accompanying Consolidated Statements of Operations during the years ended December 31, 2019, 2018, and 2017 and totaled $10.6 million, $11.7 million, and $10.0 million, respectively.
Estimated amortization for the Company’s intangible assets with definite lives as of December 31, 2019, for each of the next five years and thereafter, is as follows (in thousands):
2020
$
35,069

2021
25,131

2022
19,102

2023
16,490

2024
14,482

Thereafter
3,651

Total
$
113,925