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Goodwill
 12 Months Ended
Dec. 31, 2012
Goodwill
NOTE 10 Goodwill

During 2012, the Company allocated $162.1 million to goodwill due to the acquisitions of ProPay and CPAY. During 2011, the Company allocated $28.9 million to goodwill due to the acquisition of TermNet.

In May 2011, TSYS made a payment of $6.0 million of contingent merger consideration in connection with the purchase of Infonox on the Web (Infonox), which was recorded as goodwill.

Refer to Note 24 for more information on acquisitions.

 

With the sale of certain assets and liabilities of TPOS in 2010, the Company incurred a pre-tax goodwill impairment of $2.2 million (approximately $1.5 million after-tax), which is included in loss on discontinued operations, net of tax. TPOS was not a significant component to the Merchant Services segment. Refer to Note 2 for more information on discontinued operations.

 

The gross amount and accumulated impairment loss of goodwill at December 31, 2012 and 2011 is as follows:

 

 

 

     2012  
     North America
Services		      International
Services		      Merchant
Services		     Consolidated  

Gross amount

    $ 70,614         34,125         415,830      $ 520,569   

Accumulated impairment losses

      —         —         (2,225 )      (2,225 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Goodwill, net

    $ 70,614         34,125         413,605      $ 518,344   
  

 

 

     

 

 

     

 

 

    

 

 

  

 

 

 

 

 

     2011  
     North America
Services		      International
Services		      Merchant
Services		     Consolidated  

Gross amount

    $ 70,614         33,369         253,740      $ 357,723   

Accumulated impairment losses

      —         —         (2,225 )      (2,225 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Goodwill, net

    $ 70,614         33,369         251,515      $ 355,498   
  

 

 

     

 

 

     

 

 

    

 

 

  

 

 

The changes in the carrying amount of goodwill at December 31, 2012 and 2011 are as follows:

 

 

 

(in thousands)    North America
Services		      International
Services		      Merchant
Services		      Consolidated  

Balance as of December 31, 2010

    $ 70,614         33,188         216,597       $ 320,399   

TermNet purchase price allocation

      —         —         28,918         28,918   

Infonox additional purchase consideration

      —         —         6,000         6,000   

Currency translation adjustments

      —         181         —         181   
  

 

 

     

 

 

     

 

 

     

 

 

  

Balance as of December 31, 2011

      70,614         33,369         251,515         355,498   

CPAY purchase price allocation

      —         —         68,570         68,570   

ProPay purchase price allocation

      —         —         93,520         93,520   

Currency translation adjustments

      —         756         —         756   
  

 

 

     

 

 

     

 

 

     

 

 

  

Balance as of December 31, 2012

    $ 70,614         34,125         413,605       $ 518,344