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Goodwill and Other Assets
3 Months Ended
Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER ASSETS
Goodwill and Other Assets
Goodwill In the fourth quarter of 2014, goodwill was reviewed for impairment based on a two-step test, which resulted in no impairment in any of the Company's reporting units. Management determined that the Asia Pacific (AP) reporting unit had excess fair value of approximately $114.2, or 39 percent, when compared to its carrying amount. The Domestic and Canada and LA reporting units had excess fair value greater than 100 percent when compared to their carrying amounts. The Brazil reporting unit, which is included in the LA reportable operating segment in the first quarter of 2015, had excess fair value of approximately $61.0 or 17 percent. During 2014, NA had a reduction to goodwill of $1.6 relating to the sale of Diebold Eras, Inc. There have been no impairment indicators identified during the three months ended March 31, 2015.
In March 2015, the Company acquired Phoenix, a world leader in developing innovative software solutions for ATMs and a host of other FSS applications. Preliminary goodwill and other intangible assets resulting from the acquisition were $42.3 and $32.7, respectively, and are included in the NA reportable operating segment. The purchase price allocations are preliminary and subject to further adjustment until all pertinent information regarding the assets acquired and liabilities assumed are fully evaluated. The goodwill associated with the transaction is not deductible for income tax purposes.
Other Assets Included in other assets are net capitalized software development costs of $27.7 and $36.3 as of March 31, 2015 and December 31, 2014, respectively. Amortization expense on capitalized software included in product cost of sales was $3.5 and $4.6 for the three months ended March 31, 2015 and 2014, respectively. Other long-term assets also consist of patents, trademarks and other intangible assets. Where applicable, other assets are stated at cost and, if applicable, are amortized ratably over the relevant contract period or the estimated life of the assets. Fees to renew or extend the term of the Company’s intangible assets are expensed when incurred.
Impairment of long-lived assets is recognized when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the expected future undiscounted cash flows are less than the carrying amount of the asset group, an impairment loss may be recognized at that time to reduce the asset to the lower of its fair value or its net book value. During the first quarter of 2015, the Company recorded an impairment of certain capitalized software of $9.1 related to redundant legacy Diebold software as a result of the acquisition of Phoenix.