XML 23 R10.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Business Combination | 6 Months Ended
--- | ---
Jun. 30, 2018
Business Combinations [Abstract] |
Business Combination | Business Combination On February 28, 2017, we completed our acquisition of all the membership interests of UniRush, LLC ("UniRush"), an online direct-to-consumer GPR card and corporate payroll card provider. The fair value of the total consideration in connection with the acquisition was approximately $163.7 million, which included cash and contingent consideration in the form of an earn-out. We financed the transaction with $142.2 million in cash, of which $95 million was raised from a combination of our Revolving Facility, as discussed in Note 10 — Note Payable, and subordinated notes payable of $20 million to the selling shareholders of UniRush. The subordinated notes were repaid during the three months ended March 31, 2017. The transaction terms include an earn-out equal to the greater of (i) a specified percentage of the revenue generated by the online direct-to-consumer GPR card portfolio for the five-year period following the closing or (ii) $20 million, payable quarterly over the five years. The following table summarizes the fair value of consideration transferred:
| Consideration
| (In thousands)
Cash, including proceeds from notes payable | $ | 142,154 |
Fair value of contingent consideration | 21,500 |
Total consideration | $ | 163,654 |
Note 4—Business Combination (continued) The allocation of the purchase price was as follows:
| February 28, 2017
| (In thousands)
Assets: |
Cash and cash equivalents | $ | 656 |
Accounts receivable, net | 5,745 |
Prepaid expenses and other assets | 5,146 |
Property and equipment, net | 4,233 |
Intangible assets | 69,000 |
Goodwill | 93,435 |
Total assets: | 178,215 |
Liabilities: |
Accounts payable | 10,861 |
Other liabilities | 3,700 |
Total liabilities: | 14,561 |
Net assets acquired | $ | 163,654 |
Goodwill of approximately $93.4 million represents the excess of the purchase price over the estimated fair value of the underlying identifiable tangible and intangible assets acquired and liabilities assumed. The goodwill arises from the opportunity for synergies and economies of scale from the combined companies, and expanding our reach into the online direct-to-consumer and corporate payroll distribution channels. Although the goodwill will not be amortized for financial reporting purposes, it is anticipated that substantially all of the goodwill will be deductible for federal tax purposes over the statutory period of 15 years. Intangible assets consist primarily of customer relationships and trade names of approximately $58.5 million and $5.5 million, respectively. The customer relationships will be amortized over its estimated useful life of 5-10 years and the trade names will be amortized over a period of 15 years. Our acquisition of UniRush was accounted for under the acquisition method of accounting, with the operating results of UniRush included in our consolidated statements of operations beginning March 1, 2017. Transaction costs incurred in connection with the acquisition were not material. Unaudited pro forma financial information The following unaudited pro forma summary financial results for the six months ended June 30, 2017 present the consolidated results of operations as if the acquisition of UniRush had occurred as of January 1, 2016, after the effect of certain adjustments, including interest expense on the debt used to fund the purchase, amortization of certain identifiable intangible assets, income and expense items not attributable to ongoing operations and related tax effects. The unaudited pro forma condensed consolidated statements of operations does not include any adjustments for any restructuring activities, operating efficiencies or cost savings. The pro forma results for the six months ended June 30, 2017 have been presented for comparative purposes only and are not indicative of what would have occurred had the UniRush acquisition been made as of January 1, 2016, or of any potential results which may occur in the future.
| Six Months Ended June 30,
| 2018 |  | 2017
| (In thousands, except per share data)
|  |  | (Pro forma)
Net revenues | $ | 573,347 |  |  | $ | 494,834 |
Net income attributable to common stock | $ | 99,858 |  |  | $ | 52,737 |
Basic earnings per common share | $ | 1.93 |  |  | $ | 1.05 |
Diluted earnings per common share | $ | 1.84 |  |  | $ | 1.00 |
Basic weighted-average common shares issued and outstanding | 51,774 |  |  | 50,234 |
Diluted weighted-average common shares issued and outstanding | 54,301 |  |  | 52,577 |

X
- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
Name: | us-gaap_BusinessCombinationDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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