MoneyGram 2007 Annual Report Download - page 104
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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 were as follows:
2007 2006
Gross Net Gross Net
Carrying Accumulated Carrying Carrying Accumulated Carrying
(Amounts in thousands) Value Amortization Value Value Amortization Value
Amortized intangible assets:
Customer lists $ 38,226 $ (24,143) $ 14,083 $ 33,350 $ (21,762) $ 11,588
Patents 13,218 (12,887) 331 13,208 (12,262) 946
Noncompetition agreements 3,567 (1,927) 1,640 3,367 (707) 2,660
Trademarks 384 (137) 247 384 (125) 259
Developed technology 1,373 (69) 1,304 — — —
Total intangible assets 56,768 (39,163) 17,605 50,309 (34,856) 15,453
No impairments were identified during 2007, 2006 and 2005. The Company recorded intangible assets of $6.0 million in 2007 in
connection with the acquisition of PropertyBridge, consisting principally of customer lists, developed technology and a noncompetition
agreement and $0.5 million of additional noncompetition agreement costs associated with the finalization of the Money Express
acquisition from 2006. See Note 3 — Acquisitions and Discontinued Operations for further discussion. The Company recorded intangible
assets of $7.2 million in 2006 in connection with the acquisition of Money Express, consisting principally of customer lists and a
noncompetition agreement.
Intangible asset amortization expense for 2007, 2006 and 2005 was $4.3 million, $3.1 million and $2.1 million, respectively. The
estimated future intangible asset amortization expense is as follows:
(Amounts in thousands)
2008 $ 4,301
2009 3,382
2010 2,825
2011 1,042
2012 879
Following is a reconciliation of goodwill:
Global Funds Payment Total
(Amounts in thousands) Transfer Systems Goodwill
Balance as of January 1, 2005 $ 387,195 $ 17,075 $ 404,270
Goodwill acquired 17,046 — 17,046
Impairment charge — — —
Balance as of December 31, 2006 404,241 17,075 421,316
Goodwill acquired 23,878 — 23,878
Impairment charge (6,355) — (6,355)
Balance as of December 31, 2007 $ 421,764 $ 17,075 $ 438,839
Goodwill acquired in 2007 and 2006 relates to the acquisition of PropertyBridge and Money Express, respectively, and was allocated to
the Global Funds Transfer segment. In 2007, the Company finalized its purchase price allocation for Money Express, which resulted in a
decrease of $0.3 million to goodwill. Goodwill for both PropertyBridge and Money Express is not deductible for tax purposes.
F-30