Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Note 4: Goodwill and Other Intangible Assets

Goodwill

The carrying amount of goodwill was as follows:



Dollars in thousands	December 31,
Dollars in thousands	2014		2013
Goodwill	$	559,307	$	559,307

Goodwill by Segment

The carrying amount of goodwill by segment was as follows:



Dollars in thousands	December 31,
Dollars in thousands	2014		2013
Redbox	$	138,743	$	138,743
Coinstar	156,351		156,351
ecoATM	264,213		264,213
Total goodwill	$	559,307	$	559,307

We elected to by-pass the qualitative assessment and performed the annual goodwill impairment test based on a quantitative analysis as of November 30, 2014. We estimated the fair value of our goodwill bearing reporting units using both the income and market approaches. Our estimates of fair value can change significantly based on factors such as revenue growth rates, profit margins, discount rates, market conditions, market prices, and changes in business strategies. As the estimated fair value of each reporting unit exceeded its respective carrying value in the first step of the goodwill impairment test it was not necessary to proceed to the second step and there was no goodwill impairment in 2014.

Other Intangible Assets

The gross amount of our other intangible assets and the related accumulated amortization were as follows:



Dollars in thousands	Amortization	December 31,
Dollars in thousands	Period	2014			2013
Retailer relationships	5 - 10 years	$	53,295		$	53,295
Accumulated amortization		(23,200		)	(17,768		)
Retailer relationships, net		30,095			35,527
Developed technology	5 years	34,000			34,000
Accumulated amortization		(9,633		)	(2,833		)
Developed technology, net		24,367			31,167
Other	1 - 40 years	16,800			16,800
Accumulated amortization		(6,571		)	(4,111		)
Other, net		10,229			12,689
Total intangible assets, net		$	64,691		$	79,383

Amortization expense was as follows:



	Year Ended December 31,
Dollars in thousands	2014			2013			2012
Retailer relationships	$	5,432		$	6,250		$	4,456
Developed technology	6,800			2,833			—
Other	2,460			1,850			922
Total amortization of intangible assets	$	14,692		$	10,933		$	5,378
Less: amortization included in discontinued operations	(38		)	(26		)	(21		)
Total amortization of intangible assets from continuing operations	$	14,654		$	10,907		$	5,357

Assuming no future impairment, the expected future amortization as of December 31, 2014 is as follows:



Dollars in thousands	Retailer Relationships		Developed Technology		Other		Total
2015	$	4,012	$	6,800	$	2,407	$	13,219
2016	4,012		6,800		2,307		13,119
2017	4,012		6,800		2,285		13,097
2018	4,012		3,967		1,664		9,643
2019	4,012		—		801		4,813
Thereafter	10,035		—		765		10,800
Total expected amortization	$	30,095	$	24,367	$	10,229	$	64,691

- 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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