Goodwill and Other Assets

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Assets

The Company’s four reportable operating segments are NA, AP, EMEA, LA and unallocated amounts related to the Acquisition. The changes in carrying amounts of goodwill within the Company's segments are summarized as follows:



	NA			AP			EMEA			LA			Unallocated		Total
Goodwill	$	76.4		$	40.0		$	168.7		$	143.7		$	—	$	428.8
Accumulated impairment losses	(13.2		)	—			(168.7		)	(108.8		)	—		(290.7		)
Balance at January 1, 2015	$	63.2		$	40.0		$	—		$	34.9		$	—	$	138.1
Goodwill acquired	39.7			—			—			—			—		39.7
Currency translation adjustment	(3.4		)	(2.4		)	—			(10.5		)	—		(16.3		)
Goodwill	$	112.7		$	37.6		$	168.7		$	133.2		$	—	$	452.2
Accumulated impairment losses	(13.2		)	—			(168.7		)	(108.8		)	—		(290.7		)
Balance at December 31, 2015	$	99.5		$	37.6		$	—		$	24.4		$	—	$	161.5
Goodwill acquired	—			—			—			—			817.0		817.0
Goodwill adjustment	(0.5		)	—			—			—			—		(0.5		)
Currency translation adjustment	2.7			0.7			—			4.2			5.4		13.0
Goodwill	114.9			38.3			168.7			137.4			822.4		1,281.7
Accumulated impairment losses	(13.2		)	—			(168.7		)	(108.8		)	—		(290.7		)
Balance at September 30, 2016	$	101.7		$	38.3		$	—		$	28.6		$	822.4	$	991.0

In March 2015, the Company acquired Phoenix, a leader in developing innovative multi-vendor software solutions for ATMs and a host of other FSS applications. During the second quarter of 2016, the Company adjusted the preliminary goodwill by $(0.5) primarily to reflect adjustments to the finalization of deferred income taxes.

In August 2016, the Company acquired Wincor Nixdorf. The unallocated portion of acquired goodwill as of September 30, 2016 of $817.0 is attributable to Wincor Nixdorf. In connection with the business combination agreement related to the Acquisition, the Company announced the realignment of its lines of business to drive greater efficiency and further improve customer service. The Company began evaluating and assessing the line of business reporting structure and its impact on the allocation of the Wincor Nixdorf acquired goodwill among the reporting units. The Company does not anticipate the assessment to be completed until the first quarter of 2017. Beginning with the first quarter of 2017, the Company anticipates allocating goodwill to its reporting units based on the conclusion of the assessment on the following lines of business: Software, Systems, and Services.

The acquired Wincor Nixdorf goodwill is primarily the result of anticipated synergies achieved through increased scale, a streamlined portfolio of products and solutions, higher utilization of the service organization, workforce rationalization in overlapping regions and shared back office resources. The Company also expects that, after completion of the business combination and integration, we will generate strong free cash flow, which would be used to make investments in innovative software and solutions and reduce debt.

There have been no impairment indicators identified during the nine months ended September 30, 2016.

The following summarizes information on intangible assets by major category:



	September 30, 2016							December 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Internally-developed software	$	159.4	$	(47.7	)	$	111.7	$	92.4	$	(48.5	)	$	43.9
Development costs non-software	51.7		(4.0		)	47.7		1.1		(0.6		)	0.5
Customer relationships	662.8		(9.1		)	653.7		—		—			—
Other intangibles	101.6		(45.0		)	56.6		60.7		(37.6		)	23.1
Total	$	975.5	$	(105.8	)	$	869.7	$	154.2	$	(86.7	)	$	67.5

Amortization expense on capitalized software of $6.7 and $3.7 was included in product cost of sales for the three months ended September 30, 2016 and 2015, respectively, and $12.5 and $11.3 for the nine months ended September 30, 2016 and 2015, respectively. The Company's total amortization expense including deferred financing costs was $24.8 and $6.0 for the three months ended September 30, 2016 and 2015 and $34.2 and $17.4 for the nine months ended September 30, 2016 and 2015, respectively. The year-over-year increase in amortization expense was primarily related to the identifiable intangibles related to the Acquisition.

- 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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