| Goodwill and Other Intangible Assets |
Goodwill and Other Intangible Assets The changes in goodwill during the period January 1 to December 31, 2014 were as follows: | | | | | | | | | | | | | | Fleet Payment Solutions Segment (a) | | Other Payment Solutions Segment (a) | | Total (a) | Gross goodwill, beginning of period (a) | $ | 754,886 |
| | $ | 82,514 |
| | $ | 837,400 |
| Impact of foreign currency translation | (16,391 | ) | | (4,222 | ) | | (20,613 | ) | Acquisition of Evolution1 | — |
| | 296,132 |
| | 296,132 |
| Sale of subsidiary | (19,137 | ) | | — |
| | (19,137 | ) | Acquisition of Esso portfolio in Europe | 40,091 |
| | — |
| | 40,091 |
| Gross goodwill, end of period | 759,449 |
| | 374,424 |
| | 1,133,873 |
| Accumulated impairment, end of period | (1,337 | ) | | (16,171 | ) | | (17,508 | ) | Net goodwill, end of period | $ | 758,112 |
| | $ | 358,253 |
| | $ | 1,116,365 |
|
| | (a) | The prior year amounts have been adjusted to reflect changes as a result of finalizing the purchase accounting. |
The changes in goodwill during the period January 1 to December 31, 2013 were as follows: | | | | | | | | | | | | | | Fleet Payment Solutions Segment (a) | | Other Payment Solutions Segment (a) | | Total (a) | | | | | | | Gross goodwill, beginning of period | $ | 779,654 |
| | $ | 85,840 |
| | $ | 865,494 |
| Impact of foreign currency translation | (30,540 | ) | | (3,326 | ) | | (33,866 | ) | Acquisition of FastCred | 5,772 |
| | — |
| | 5,772 |
| Gross goodwill, end of period (a) | 754,886 |
| | 82,514 |
| | 837,400 |
| Accumulated impairment, end of period | (1,337 | ) | | (16,171 | ) | | (17,508 | ) | Net goodwill, end of period | $ | 753,549 |
| | $ | 66,343 |
| | $ | 819,892 |
|
The Company adjusted the consolidated balance sheet amount for goodwill and intangible assets at December 31, 2013, and December 31, 2012, to account for the measurement period adjustments related to the FastCred, CorporatePay, UNIK and FleetOne and purchase price allocations. During the third quarter of 2012, the Company determined that pricing pressure in the prepaid giftcard product in Australia would result in lower future earnings than forecasted at the time of the purchase of WEX Prepaid Cards Australia. On September 30, 2012, the Company recorded an estimated goodwill impairment loss of $16,171 related to the purchase of WEX Prepaid Cards Australia. The Company used a discounted cash flow model of the projected earnings of WEX Prepaid Cards Australia, which is a level 3 fair value measurement, to determine the amount of goodwill impairment. This amount was finalized during the fourth quarter of 2012. During the fourth quarter of 2012, the Company recorded a goodwill impairment loss of $1,337, which is a level 3 fair value measurement, related to the purchase of Financial Automation Limited, acquired in August of 2008. The changes in intangible assets during the period January 1 to December 31, 2014, were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | Net Carrying Amount, Beginning of Period (a) | | Acquisitions | | Amortization | | Disposals | | Impacts of Foreign Currency Translation | | Net Carrying Amount, End of Period | | | | | | | | | | | | | Definite-lived intangible assets | | | | | | | | | | | | Acquired software and developed technology (a) | $ | 61,590 |
| | $ | 70,000 |
| | $ | (10,091 | ) | | $ | — |
| | $ | (1,990 | ) | | $ | 119,509 |
| Customer relationships (a) | 127,403 |
| | 218,720 |
| | (28,575 | ) | | (3,727 | ) | | (3,997 | ) | | 309,824 |
| Licensing agreements | — |
| | 36,979 |
| | (390 | ) | | — |
| | (874 | ) | | 35,715 |
| Patent | 1,672 |
| | — |
| | (380 | ) | | — |
| | (47 | ) | | 1,245 |
| Trade name (a) | 8,835 |
| | 7,900 |
| | (1,186 | ) | | — |
| | (176 | ) | | 15,373 |
| Indefinite-lived intangible assets | | | | | | | | | | | | Trademarks, trade names and brand names | 7,244 |
| | 11,000 |
| | — |
| | (1,444 | ) | | (421 | ) | | 16,379 |
| Total | $ | 206,744 |
| | $ | 344,599 |
|
| (40,622 | ) |
| (5,171 | ) | | (7,505 | ) | | 498,045 |
|
(a) The prior years amounts have been adjusted to reflect changes as a result of finalizing the purchase accounting. 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 re-branding efforts of changing from the Wright Express brand to the WEX brand initiated domestically and abroad. The Company determined that a 10 year life would be appropriate in conjunction with the re-branding strategy initiated during the third quarter of 2013. The changes in intangible assets during the period January 1 to December 31, 2013, were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | Net Carrying Amount, Beginning of Period | | Acquisition (a) | | Transfer from indefinite-lived intangible assets to definite-lived intangible assets | | Amortization | | Impacts of Foreign Currency Translation | | Net Carrying Amount, End of Period | | | | | | | | | | | | | Definite-lived intangible assets | | | | | | | | | | | | Acquired software and developed technology (a) | $ | 71,343 |
| | $ | 826 |
| | $ | — |
| | $ | (8,417 | ) | | $ | (2,162 | ) | | $ | 61,590 |
| Customer relationships (a) | 150,290 |
| | 9,515 |
| | — |
| | (23,552 | ) | | (8,850 | ) | | 127,403 |
| Patent | 2,365 |
| | — |
| | — |
| | (465 | ) | | (228 | ) | | 1,672 |
| Trade name (a) | 7,407 |
| | — |
| | 2,421 |
| | (713 | ) | | (280 | ) | | 8,835 |
| Indefinite-lived intangible assets | | | | | | | | | | | | Trademarks, trade names and brand names | 10,545 |
| | — |
| | (2,421 | ) | | — |
| | (880 | ) | | 7,244 |
| Total | $ | 241,950 |
| | $ | 10,341 |
|
| $ | — |
| | $ | (33,147 | ) | | $ | (12,400 | ) | | $ | 206,744 |
|
(a) The prior years amounts have been adjusted to reflect changes as a result of finalizing the purchase accounting. The following table presents the estimated amortization expense related to the definite-lived intangible assets listed above for each of the next five fiscal years: | | | | | Estimated Amortization Expense | 2015 | $ | 50,053 |
| 2016 | $ | 49,578 |
| 2017 | $ | 49,094 |
| 2018 | $ | 45,387 |
| 2019 | $ | 41,831 |
|
Other intangible assets consist of the following: | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2014 | | December 31, 2013 | | | | | | | | | | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount | | Gross Carrying Amount (a) | | Accumulated Amortization | | Net Carrying Amount (a) | Definite-lived intangible assets | | | | | | | | | | | | Acquired software and developed technology | $ | 150,458 |
| | $ | (30,949 | ) | | $ | 119,509 |
| | $ | 83,844 |
| | $ | (22,254 | ) | | $ | 61,590 |
| Non-compete agreement | — |
| | — |
| | — |
| | 100 |
| | (100 | ) | | — |
| Customer relationships | 394,316 |
| | (84,492 | ) | | 309,824 |
| | 197,424 |
| | (70,021 | ) | | 127,403 |
| Licensing agreements | 36,100 |
| | (385 | ) | | 35,715 |
| | — |
| | — |
| | — |
| Patent | 2,697 |
| | (1,452 | ) | | 1,245 |
| | 2,935 |
| | (1,263 | ) | | 1,672 |
| Trade name | 17,786 |
| | (2,413 | ) | | 15,373 |
| | 10,112 |
| | (1,277 | ) | | 8,835 |
| | $ | 601,357 |
| | $ | (119,691 | ) | | 481,666 |
| | $ | 294,415 |
| | $ | (94,915 | ) | | 199,500 |
| Indefinite-lived intangible assets | | | | | | | | | | | | Trademarks, trade names and brand names | | | | | 16,379 |
| | | | | | 7,244 |
| Total | | | | | $ | 498,045 |
| | | | | | $ | 206,744 |
|
(a) The prior years amounts have been adjusted to reflect changes as a result of finalizing the purchase accounting. |