MoneyGram 2004 Annual Report Download - page 67

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Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 8. Intangibles and Goodwill
Intangible assets at December 31, 2004 were as follows:
Gross Net
Carrying Accumulated Carrying
Value Amortization Value
(Dollars in thousands)
Amortized intangible assets:
Customer lists $ 28,688 $ (18,491) $ 10,197
Patents 13,200 (11,010) 2,190
Trademarks 481 (161) 320
42,369 (29,662) 12,707
Unamortized intangible assets:
Pension intangible assets 2,503 — 2,503
$ 44,872 $ (29,662) $ 15,210
During the third quarter of 2004, the Company evaluated the recoverability of certain purchased customer list intangibles due to the expected departure of a
particular customer. To determine recoverability, the Company estimated future cash flows over the remaining useful life and calculated the fair value. An
impairment loss of $2.1 million was recognized for the amount in which the carrying amount exceeded the fair value amount. This loss is included on the
Consolidated Statement of Income in "Transaction and operations support" and relates to our Payment Systems segment.
Intangible assets at December 31, 2003 were as follows:
Gross Net
Carrying Accumulated Carrying
Value Amortization Value
(Dollars in thousands)
Amortized intangible assets:
Customer lists $ 29,607 $ (17,062) $ 12,545
Patents 13,200 (10,385) 2,815
Trademarks 480 (149) 331
43,287 (27,596) 15,691
Unamortized intangible assets:
Pension intangible assets 3,127 — 3,127
$ 46,414 $ (27,596) $ 18,818
Intangible asset amortization expense for 2004, 2003 and 2002 was $2.1 million, $1.9 million and $1.8 million, respectively. Estimated remaining
amortization expense is $2.1 million, $2.1 million, $2.1 million, $1.8 million and $1.4 million for the years ending December 31, 2005, 2006, 2007, 2008 and
2009, respectively. F-23