Goodwill and Other Intangible Assets



5.	Goodwill and Other Intangible Assets

Goodwill

The changes in goodwill during the first nine months of 2013 were as follows:



	Fleet Payment Solutions Segment			Other Payment Solutions Segment			Total
Gross goodwill, January 1, 2013, as adjusted	$	779,654		$	85,840		$	865,494
Impact of foreign currency translation	(21,123		)	(2,556		)	(23,679		)
Gross goodwill, September 30, 2013	758,531			83,284			841,815
Accumulated impairment, September 30, 2013	(1,337		)	(16,171		)	(17,508		)
Net goodwill, September 30, 2013	$	757,194		$	67,113		$	824,307

The Company had no impairments to goodwill during the nine months ended September 30, 2013.

Other Intangible Assets

The changes in other intangible assets during the first nine months of 2013 were as follows:



	Net Carrying Amount, January 1, 2013		Transfer from indefinite-lived intangible assets to definite-lived intangible assets			Amortization			Impact of foreign currency translation			Net Carrying Amount, September 30, 2013
	(As adjusted)
Definite-lived intangible assets
Acquired software	$	71,343	$	—		$	(6,350	)	$	(1,584	)	$	63,409
Customer relationships	150,290		—			(17,264		)	(5,819		)	127,207
Patent	2,365		—			(341		)	(176		)	1,848
Trade names	7,407		2,421			(609		)	(116		)	9,103
Indefinite-lived intangible assets												—
Trademarks and trade names	10,545		(2,421		)	—			(617		)	7,507
Total	$	241,950	$	—		$	(24,564	)	$	(8,312	)	$	209,074

The Company adjusted the balance sheet amount for goodwill and intangible assets at December 31, 2012, to account for the measurement period adjustments related to the CorporatePay, UNIK and Fleet One purchase price allocations.

During the third quarter of 2013, the Company determined that the intangible asset recorded for the trade name associated with Wright Express Corporation should be reclassified from an indefinite-lived intangible asset to a definite-lived intangible asset due to the current re-branding efforts of changing from the Wright Express brand to the WEX brand initiated domestically and abroad. The Company determined a 10 year life would be appropriate in conjunction with the re-branding strategy initiated during the third quarter of this year.

The following table presents the estimated amortization expense related to the definite-lived intangible assets listed above for the remainder of 2013 and for each of the five succeeding fiscal years:



Estimated Amortization Expense
Remaining 2013	$	8,188
2014	$	31,541
2015	$	28,918
2016	$	25,360
2017	$	21,625
2018	$	18,606

Other intangible assets consist of the following:



	September 30, 2013							December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Definite-lived intangible assets
Acquired software	$	84,023	$	(20,614	)	$	63,409	$	86,527	$	(15,184	)	$	71,343
Non-compete agreement	100		(100		)	—		100		(100		)	—
Customer relationships	192,846		(65,639		)	127,207		202,061		(51,771		)	150,290
Patent	3,083		(1,235		)	1,848		3,430		(1,065		)	2,365
Trademarks and trade names	10,137		(1,034		)	9,103		7,827		(420		)	7,407
	$	290,189	$	(88,622	)	201,567		$	299,945	$	(68,540	)	231,405
Indefinite-lived intangible assets
Trademarks and trade names						7,507							10,545
Total						$	209,074						$	241,950

- 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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