XML 23 R9.htm IDEA: XBRL DOCUMENT v3.19.2
GOODWILL AND INTANGIBLE ASSETS
 6 Months Ended
Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS

The Company records goodwill when an acquisition is made and the purchase price is greater than the fair value assigned to the underlying tangible and intangible assets acquired and the liabilities assumed. The Company's goodwill was allocated to reportable segments as follows:
(in thousands)
June 30, 2019
 
December 31, 2018
Consumer Payments
$
106,832

 
$
106,832

Commercial Payments
—

 
—

Integrated Partners
2,683

 
2,683

 
$
109,515

 
$
109,515



There were no changes in the carrying amount of goodwill for the quarter and six months ended June 30, 2019.

The Company's intangible assets primarily include merchant portfolios and other intangible assets such as non-compete agreements, trade names, acquired technology (developed internally by acquired companies prior to acquisition by the Company) and customer relationships. As of June 30, 2019 and December 31, 2018, intangible assets consisted of the following:

(in thousands)
June 30, 2019
 
December 31, 2018
Other intangible assets:
 
 
 
Merchant portfolios
$
154,750

 
$
137,576

Non-compete agreements
3,390

 
3,390

Trade names
2,870

 
2,870

Acquired technology
15,390

 
14,390

Customer relationships
124,660

 
55,940

 Total gross carrying value
301,060

 
214,166

Less accumulated amortization:
 
 
 
Merchant portfolios
(58,037
)
 
(48,492
)
Non-compete agreements
(3,390
)
 
(3,390
)
Trade names
(1,145
)
 
(1,017
)
Acquired technology
(11,474
)
 
(10,222
)
Customer relationships
(31,130
)
 
(26,408
)
Total accumulated amortization
(105,176
)
 
(89,529
)
 
 
 
 
 Net carrying value
$
195,884

 
$
124,637


 
See Note 2, Acquisitions and Contributions of Assets, for information about additions made during the first six months of 2019.

Amortization expense for finite-lived intangible assets was approximately $8.2 million and $15.6 million for the quarter and six months ended June 30, 2019, respectively, and $2.8 million and $5.5 million for the quarter and six months ended June 30, 2018, respectively. Amortization expense for future periods could differ due to new intangible asset acquisitions, changes in useful lives of existing intangible assets, and other relevant events or circumstances.

The Company tests goodwill for impairment for each of its reporting units on an annual basis, or when events occur or circumstances indicate the fair value of a reporting unit is below its carrying value. The Company expects to perform its next annual goodwill impairment test as of November 30, 2019 using market data and discounted cash flow analysis. The Company concluded there were no indicators of impairment as of June 30, 2019 or December 31, 2018. As such, there was no accumulated impairment loss as of June 30, 2019 and December 31, 2018.