Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill, allocated by reportable segments, were as follows (See Note 14):



(In thousands)	Payment Services - Puerto Rico & Caribbean		Payment Services - Latin America			Merchant Acquiring, net		Business Solutions		Total
Balance at December 31, 2017	$	160,972	$	53,659		$	138,121	$	45,823	$	398,575
Foreign currency translation adjustments	—		(1,354		)	—		—		(1,354		)
Balance at June 30, 2018	$	160,972	$	52,305		$	138,121	$	45,823	$	397,221

Goodwill is tested for impairment on an annual basis, or more often if events or changes in circumstances indicate there may be impairment. The Company first assesses qualitative factors to determine whether it is necessary to perform the quantitative impairment test. If determined to be necessary, the quantitative impairment test is used to identify goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any).

There were no triggering events or changes in circumstances that, subsequent to the Company's most recent impairment test, would have required an additional impairment evaluation. No impairment losses were recognized for the six months ended June 30, 2018 or 2017.

The carrying amount of other intangible assets at June 30, 2018 and December 31, 2017 was as follows:



		June 30, 2018
(Dollar amounts in thousands)	Useful life in years	Gross amount		Accumulated amortization			Net carrying amount
Customer relationships	8 - 14	$	343,641	$	(181,439	)	$	162,202
Trademark	2 - 15	41,764		(27,103		)	14,661
Software packages	3 - 10	206,340		(144,277		)	62,063
Non-compete agreement	15	56,539		(29,212		)	27,327
Other intangible assets, net		$	648,284	$	(382,031	)	$	266,253



		December 31, 2017
(Dollar amounts in thousands)	Useful life in years	Gross amount		Accumulated amortization			Net carrying amount
Customer relationships	8 - 14	$	344,175	$	(168,134	)	$	176,041
Trademark	2 - 15	41,594		(25,241		)	16,353
Software packages	3 - 10	195,262		(136,907		)	58,355
Non-compete agreement	15	56,539		(27,327		)	29,212
Other intangible assets, net		$	637,570	$	(357,609	)	$	279,961

For the three and six months ended June 30, 2018, the Company recorded amortization expense related to other intangibles of $12.2 million and $24.4 million, respectively, compared to $12.2 million and $24.2 million for the corresponding 2017 periods.

The estimated amortization expense of the balances outstanding at June 30, 2018 for the next five years is as follows:



(Dollar amounts in thousands)
Remaining 2018	$	23,554
2019	44,004
2020	38,834
2021	34,324
2022	32,618

- 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.

+ References + Details