Goodwill and Other Assets

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Assets

The changes in carrying amounts of goodwill within the Company's segments are summarized as follows:



	NA			AP			EMEA			LA			Total
Goodwill	$	112.1		$	41.3		$	168.7		$	148.5		$	470.6
Accumulated impairment losses	(13.2		)	—			(168.7		)	(108.8		)	(290.7		)
Balance at January 1, 2014	$	98.9		$	41.3		$	—		$	39.7		$	179.9
Divestiture	(1.6		)	—			—			—			(1.6		)
Currency translation adjustment	(0.2		)	(1.3		)	—			(4.8		)	(6.3		)
Goodwill	$	110.3		$	40.0		$	168.7		$	143.7		$	462.7
Accumulated impairment losses	(13.2		)	—			(168.7		)	(108.8		)	(290.7		)
Balance at December 31, 2014	$	97.1		$	40.0		$	—		$	34.9		$	172.0
Goodwill acquired	40.2			0.5			—			0.5			41.2
Currency translation adjustment	0.5			(1.0		)	—			(4.6		)	(5.1		)
Goodwill	151.0			39.5			168.7			139.6			498.8
Accumulated impairment losses	(13.2		)	—			(168.7		)	(108.8		)	(290.7		)
Balance at June 30, 2015	$	137.8		$	39.5		$	—		$	30.8		$	208.1

During 2014, NA had a reduction to goodwill of $1.6 relating to the sale of Eras. 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 $41.2 and $29.3, respectively, and are primarily 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.

There have been no impairment indicators identified during the six months ended June 30, 2015.

The following summarizes information on intangible assets by major category:



	June 30, 2015							December 31, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Internally-developed software	$	76.5	$	(50.3	)	$	26.2	$	102.1	$	(65.8	)	$	36.3
Other intangibles	76.2		(29.4		)	46.8		52.2		(28.5		)	23.7
Total	$	152.7	$	(79.7	)	$	73.0	$	154.3	$	(94.3	)	$	60.0

Intangible assets are included in other assets on the condensed consolidated balance sheets. Amortization expense on capitalized software included in product cost of sales was $4.1 and $4.3 for the three months ended June 30, 2015 and 2014, respectively, and $7.6 and $8.9 for the six months ended June 30, 2015 and 2014, respectively.

The decrease in internally-developed software is primarily due to a $9.1 impairment during the first quarter of 2015 of certain internally-developed software related to redundant legacy Diebold software as a result of the acquisition of Phoenix.

- 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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