XML 30 R17.htm IDEA: XBRL DOCUMENT v3.20.4
Intangible Assets
12 Months Ended
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets 
Goodwill
The following tables present the net carrying amount of the Company’s goodwill as of December 31, 2020 and 2019, as well as the changes in the net carrying amounts for the years ended December 31, 2020 and 2019 by segment. As of December 31, 2020, the Company held no significant indefinite-lived intangible assets. For additional information related to the Company's segments, see Note 22. Segment Information.
 North AmericaEurope & AfricaAustralia & New ZealandTotal
(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, 2018556,570 181,118 11,456 749,144 
Foreign currency translation adjustments4,943 5,871 (63)10,751 
 
Goodwill, gross as of December 31, 2019561,513 236,992 151,431 949,936 
Accumulated impairment loss(7,303)(50,003)(140,038)(197,344)
Goodwill, net as of December 31, 2019554,210 186,989 11,393 752,592 
Foreign currency translation adjustments2,221 3,159 1,130 6,510 
Goodwill, gross as of December 31, 2020563,734 240,151 152,561 956,446 
Accumulated impairment loss(7,303)(50,003)(140,038)(197,344)
Goodwill, net as of December 31, 2020$556,431 $190,148 $12,523 $759,102 
Intangible Assets with Definite Lives 
The following table presents the Company’s intangible assets that were subject to amortization:
 December 31, 2020December 31, 2019
 Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
 (In thousands)
Merchant and bank-branding contracts/relationships$496,634 $(424,511)$72,123 $489,363 $(388,598)$100,765 
Trade names20,262 (14,144)6,118 18,391 (12,792)5,599 
Technology12,003 (8,983)3,020 12,389 (7,952)4,437 
Non-compete agreements4,442 (4,442)— 4,408 (4,408)— 
Revolving credit facility deferred financing costs5,821 (2,453)3,368 5,256 (2,132)3,124 
Total intangible assets with definite lives$539,162 $(454,533)$84,629 $529,807 $(415,882)$113,925 
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 generally range from four to ten years for merchant and bank-branding contracts/relationships, two to ten years for exclusive license agreements (classified with the contracts/relationships above), one to fifteen years for definite-lived trade names, three years for acquired technology, and one to five years for non-compete agreements. 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 entered into in the ordinary course of business and not recognized in conjunction with a business combination. Although classified in intangible assets, 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.
During the year ended December 31, 2020, the Company expensed approximately $0.8 million of deferred financing costs associated with its revolving credit facility upon entering into a third amendment to the revolving credit facility agreement, which reduced the borrowing capacity of the facility. This expense was recognized in the Amortization of deferred financing costs and note discount line of the Consolidated Statements of Operations. Deferred financing costs relating to the revolving credit facility are amortized over the contractual term of the revolving credit facility utilizing the effective interest method. The remaining unamortized deferred financing cost balance will be amortized in the amount of approximately $0.9 million per year in 2021-2023 and approximately $0.7 million in 2024. These figures are included in the estimated amortization table, below. See Note 11. Current and Long-Term Debt.
Estimated Amortization
Estimated amortization for the Company’s intangible assets with definite lives as of December 31, 2020, for each of the next five years and thereafter, is as follows (in thousands):
2021$25,872 
202220,407
202317,731
202415,277
20253,674
Thereafter1,668
Total$84,629