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Long-Lived Assets (Tables)
 12 Months Ended
Dec. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract]  
Summary of Property and Equipment

Property and Equipment. Property and equipment at December 31 consisted of the following (in thousands, except years):

 

 

Useful
Lives (years)

 

  

2015

 

  

2014

 

Computer equipment

 

3-5

  

  

$

70,408

  

  

$

 96,749

  

Leasehold improvements

 

5-10

  

  

 

15,226

 

  

 

16,566

  

Operating equipment

 

3-8

  

  

 

53,494

 

  

 

55,501

  

Furniture and fixtures

 

8

  

  

 

9,146

 

  

 

 7,531

  

Capital projects in process

 

—

  

  

 

-

 

  

 

 44

  

 

 

 

 

  

 

148,274

 

  

 

 176,391

  

Less—accumulated depreciation

 

 

 

  

 

(112,282

)

  

 

 (138,065

) 

Property and equipment, net

 

 

 

  

$

35,992

 

  

$

 38,326

  

 
Rollforward of Goodwill

 

Goodwill. We do not have any intangible assets with indefinite lives other than goodwill. A rollforward of goodwill in 2015 and 2014 is as follows (in thousands):

 

January 1, 2014 balance

 

$

 233,599

 

Revisions related to prior acquisitions

 

 

(59

)

Effects of changes in foreign currency exchange rates

 

 

(8,271

)

December 31, 2014 balance

 

 

225,269

 

Revisions related to prior acquisitions

 

 

 (60

)

Effects of changes in foreign currency exchange rates

 

 

 (5,485

)

December 31, 2015 balance

 

$

 219,724

 

 
Summary of Carrying Value of Assets

As of December 31, 2015 and 2014, the carrying values of these assets were as follows (in thousands):

 

 

2015

 

  

2014

 

 

Gross
Carrying
Amount

  

 

Accumulated
Amortization

  

 

Net
Amount

 

  

Gross
Carrying
Amount

 

  

Accumulated
Amortization

 

 

Net
Amount

 

Investments in client contracts (1)

$

25,176

  

  

$

(17,060

)

  

$

8,116

  

  

$

34,657

 

  

$

(23,907

)

 

$

10,750 

 

Capitalized costs (2)

 

10,868

  

 

 

(2,489

)

 

 

8,379

 

  

 

6,667

  

 

 

 (3,463

)

 

 

3,204

 

Acquired client contracts (3)

 

91,584

  

 

 

(68,341

)

 

 

23,243

 

  

 

  94,164

  

 

 

(61,215

)

 

 

 32,949

 

Total client contracts

$

127,628

  

 

$

(87,890

)

 

$

39,738

 

  

$

 135,488

  

 

$

(88,585

)

 

$

46,903

 

 

As of December 31, 2015 and 2014, the carrying values of these assets were as follows (in thousands):

 

2015

  

 

2014

 

 

Gross
Carrying
Amount

  

 

Accumulated
Amortization

  

 

Net
Amount

  

 

Gross
Carrying
Amount

 

  

Accumulated
Amortization

 

 

Net
Amount

 

Acquired software (4)

$

66,798

 

  

$  

(61,475

)  

  

$  

5,323

  

  

$ 

67,012

 

  

$  

(56,806

)  

  

$  

10,206

 

Internal use software (5)

 

63,391

  

 

 

(33,619

)  

 

 

29,772

  

 

 

64,517

  

 

 

(29,991

)  

 

 

34,526

 

Total software

$

130,189

  

 

$

(95,094

)  

 

$

35,095

  

 

$

131,529

  

 

$

(86,797

)  

 

$

44,732

 

 
Summary of Aggregate Amortization

 

The aggregate amortization related to client contracts included in our operations for 2015, 2014, and 2013, was as follows (in thousands):

 

 

2015

 

  

2014

 

  

2013

 

Investments in client contracts (1)

$ 

5,165

  

  

$

6,409

  

  

$

6,181

  

Capitalized costs (2)

 

1,334

 

  

 

1,007

  

  

 

2,365

  

Acquired client contracts (3)

 

8,902

 

  

 

 11,951

  

  

 

14,999

  

Total client contracts

$

15,401

 

  

$

 19,367

  

  

$

23,545

  

(1)

Investments in client contracts consist principally of incentives provided to new or existing clients to convert their customer accounts to, or retain their customer’s accounts on, our customer care and billing systems. Investments in client contracts related to client incentives are amortized ratably over the lives of the respective client contracts, which as of December 31, 2015, have termination dates that range from 2016 through 2020. Amortization of the investments in client contracts related to client incentives is reflected as a reduction in processing and related services revenues in our Income Statements.

(2)

Capitalized costs related to client conversion/set-up services related to long-term processing or managed services arrangements are generally amortized proportionately over the contract period that the processing or managed services are expected to be provided, and are primarily reflected in cost of processing and related services in our Income Statements.

(3)

Acquired client contracts represent assets acquired in our prior business acquisitions. Acquired client contracts are being amortized over their estimated useful lives ranging from five to ten years based on the approximate pattern in which the economic benefits of the intangible assets are expected to be realized. Classification of the amortization of acquired client contracts generally follows where the acquired business’ cost of revenues are categorized in our Income Statements.

The aggregate amortization related to software included in our operations for 2015, 2014, and 2013, was as follows (in thousands):

 

 

2015

 

  

2014

 

  

2013

 

Acquired software (4)

$  

3,081

  

  

$

 3,457

  

  

$

4,221

  

Internal use software (5)

  

8,048

 

  

 

8,404

 

  

 

7,633

  

Total software

$  

11,129

 

  

$

 11,861

 

  

$

11,854

  

(1)

Acquired software represents the software intangible assets acquired in our prior business acquisitions, which are being amortized over their estimated useful lives ranging from five to ten years.

(2)

Internal use software represents: (i) third-party software licenses; and (ii) the internal and external costs related to the implementation of the third-party software licenses. Internal use software is amortized over its estimated useful life ranging from twelve months to ten years.