Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

The following table summarizes the Company's goodwill activity by segment for the six months ended June 30, 2014 (in thousands):



	North America		EMEA			Rest of World		Consolidated
Balance as of December 31, 2013	$	85,457	$	115,669		$	19,701	$	220,827
Goodwill related to acquisitions	11,640		—			220,592		232,232
Other adjustments⁽¹⁾	115		(881		)	8,679		7,913
Balance as of June 30, 2014	$	97,212	$	114,788		$	248,972	$	460,972


(1)	Includes changes in foreign exchange rates for goodwill and purchase accounting adjustments.

The following tables summarize the Company's other intangible assets (in thousands):



	June 30, 2014
Asset Category	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Subscriber relationships	$	110,648	$	42,068	$	68,580
Merchant relationships	42,551		14,253		28,298
Trade names	31,265		9,155		22,110
Developed technology	24,227		21,577		2,650
Brand relationships	7,690		701		6,989
Other intangible assets	17,162		9,607		7,555
Total	$	233,543	$	97,361	$	136,182



	December 31, 2013
Asset Category	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Subscriber relationships	$	45,541	$	30,866	$	14,675
Merchant relationships	9,186		7,991		1,195
Trade names	6,739		6,739		—
Developed technology	23,038		19,547		3,491
Other intangible assets	16,776		7,694		9,082
Total	$	101,280	$	72,837	$	28,443

Amortization of intangible assets is computed using the straight-line method over their estimated useful lives, which range from 1 to 5 years. Amortization expense related to intangible assets was $11.6 million and $5.2 million for the three months ended June 30, 2014 and 2013, respectively, and $24.2 million and $10.8 million for the six months ended June 30, 2014 and 2013, respectively. As of June 30, 2014, the Company's estimated future amortization expense related to intangible assets is as follows (in thousands):



Remaining amounts in 2014	$	23,256
2015	40,691
2016	34,170
2017	19,252
2018	18,741
Thereafter	72
Total	$	136,182

- 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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