XML 23 R12.htm IDEA: XBRL DOCUMENT
v3.20.2

Goodwill and Acquired Intangible Assets, Net | 9 Months Ended
--- | ---
Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND ACQUIRED INTANGIBLE ASSETS, NET | (5) GOODWILL AND ACQUIRED INTANGIBLE ASSETS, NET A summary of acquired intangible assets and goodwill activity for the nine months ended September 30, 2020 is presented below:
(in thousands) |  | Acquired Intangible Assets |  | Goodwill |  | Total Intangible Assets
Balance as of December 31, 2019 |  | $ | 141,847 |  |  | $ | 743,823 |  |  | $ | 885,670 |
Increases (decreases): |  |  |  |  |  |
Acquisition |  | 926 |  |  | (474 | ) |  | 452 |
Amortization |  | (17,020 | ) |  | — |  |  | (17,020 | )
Impairment |  | (1,467 | ) |  | (104,554 | ) |  | (106,021 | )
Other (primarily changes in foreign currency exchange rates) |  | (709 | ) |  | 3,091 |  |  | 2,382 |
Balance as of September 30, 2020 |  | $ | 123,577 |  |  | $ | 641,886 |  |  | $ | 765,463 |
Of the total goodwill balance of $641.9 million as of September 30, 2020, $388.5 million relates to the Money Transfer Segment, $131.9 million relates to the epay Segment and the remaining $121.5 million relates to the EFT Processing Segment. Estimated amortization expense on intangible assets with finite lives as of September 30, 2020, is expected to total $5.6 million for the remainder of 2020, $22.0 million for 2021, $20.9 million for 2022, $16.1 million for 2023, $9.6 million for 2024 and $6.5 million for 2025. 2020 Impairment Charges The COVID-19 pandemic and subsequent mitigation efforts, which include global business shutdowns, the closing of borders and the implementation of mandatory social distancing requirements, has created an unprecedented disruption to our business that began in March 2020. These mitigation efforts coupled with the negative economic impacts to the tourism industry caused a decline in revenues and changes to our forecasts. The Company tests for goodwill impairment on an annual basis in the fourth quarter each year and whenever events or circumstances dictate an interim impairment test is required. The Company determined the totality of these events constituted a triggering event that required us to perform an interim goodwill impairment assessment as of June 1, 2020. The Company concluded a triggering event had occurred for six reporting units, resulting in quantitative impairment tests. Three reporting units are within the EFT segment, two reporting units are within the Money Transfer segment, and one reporting unit is within the epay segment. Under the quantitative impairment test, the evaluation of impairment involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. The Company uses weighted results from the discounted cash flow model ("DCF model") and guideline public company method ("Market Approach model") to estimate the current fair value of its reporting units when testing for impairment, as management believes forecasted cash flows and EBITDA are the best indicators of such fair value. A number of significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including sales volumes and gross margins, tax rates, capital spending, discount rates and working capital changes. Most of these assumptions vary significantly among the reporting units. Significant assumptions in the Market Approach model are actual and projected EBITDA, selected market multiple, and the estimated control premium. If the carrying value of the reporting unit exceeds its fair value, a goodwill impairment loss equal to such excess would be recognized. The DCF Model and Market Approach Model utilize Level 3 inputs in the fair value hierarchy as they include unobservable inputs that require significant management assumptions. The Company completed an interim goodwill impairment test during the second quarter of 2020. It determined, after performing a quantitative review of six reporting units, that the fair value of three of the reporting units exceeded the respective carrying amounts. For the remaining three reporting units, the quantitative test indicated that the fair value of each of the reporting units was less than the respective carrying amounts. As a result, the Company recorded a non-cash goodwill impairment charge of $104.6 million with respect to the xe, Innova and Pure Commerce reporting units. $21.9 million of the impairment charge was included within the EFT Segment, and $82.7 million of the impairment charge was included in the Money Transfer Segment. We have and will continue to evaluate our goodwill and long-lived assets for potential triggering events as conditions warrant. Determining the fair value of reporting units requires significant management judgment in estimating future cash flows and assessing potential market and economic conditions. It is reasonably possible that the Company’s operations will not perform as expected, or that the estimates or assumptions included in the 2019 annual impairment test and 2020 interim impairment test could change, which may result in the Company recording material non-cash impairment charges during the year in which these changes take place. As additional information regarding the impact of the COVID-19 pandemic on the Company's business, including intangible assets, becomes available, the impacts to cash flows and the related impact on recovery of intangible assets will be evaluated. During the third quarter of 2020, the Company recorded a $1.5 million non-cash impairment charge for acquired intangible assets, specifically related to customer lists in the xe reporting unit.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration