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Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
management industry and offers a complete solution to the resident payment cycle, including the ability to electronically accept security
deposits and rent payments. Residents can pay rent online, by phone or in person and set up recurring payments. PropertyBridge is a
component of the Company's Global Funds Transfer segment.
In 2007, the Company finalized its purchase price allocation, resulting in goodwill of $24.1 million assigned to the Company's Global
Funds Transfer segment and purchased intangible assets of $6.0 million, consisting primarily of customer lists, developed technology and
a non-compete agreement. The intangible assets will be amortized over useful lives ranging from three to 15 years. The potential earn-out
payment of up to $10.0 million contingent on PropertyBridge's performance during 2008 was not achieved. The purchase price allocation
included $0.2 million of transaction costs. The operating results of PropertyBridge subsequent to October 1, 2007 are included in the
Company's Consolidated Statements of (Loss) Income. The financial impact of the acquisition is not material to the Consolidated Balance
Sheets or Consolidated Statements of (Loss) Income.
Money Express — On May 31, 2006, MoneyGram completed the acquisition of Money Express S.r.l. ("Money Express"), the Company's
former money transfer super-agent in Italy, for $15.0 million. In connection with the acquisition, the Company formed MoneyGram
Payment Systems Italy, S.r.l., a wholly owned subsidiary, to operate the former Money Express agent network. The acquisition provides
the Company with the opportunity for further network expansion and more control of marketing and promotional activities in the region.
In 2007, the Company finalized its purchase price allocation, which resulted in a decrease of $0.3 million to goodwill. Purchased
intangible assets of $7.7 million, consisting primarily of customer lists and a non-compete agreement, will be amortized over useful lives
ranging from three to five years. Goodwill of $16.7 million was recorded and assigned to the Company's Global Funds Transfer segment.
The purchase price allocation included $1.3 million of transaction costs and the forgiveness of $0.7 million of liabilities. The operating
results of Money Express subsequent to May 31, 2006 are included in the Company's Consolidated Statements of (Loss) Income. The
financial impact of the acquisition is not material to the Consolidated Balance Sheets or Consolidated Statements of (Loss) Income.
ACH Commerce — The Company purchased ACH Commerce, LLC ("ACH Commerce") in April 2005 for $9.6 million, of which
$1.1 million was paid upon the second anniversary of the acquisition in 2007 in accordance with the terms of the acquisition agreement.
After evaluating the Company's market opportunity for certain of its electronic payment services, the Company announced a decision in
December 2008 to exit the ACH Commerce business. In connection with this decision, the Company recognized an $8.8 million
impairment for all of the goodwill resulting from the acquisition.
Game Financial Corporation — During 2007, the Company paid $3.3 million in connection with the settlement of a contingency in the
Sales and Purchase Agreement related to the continued operations of Game Financial Corporation ("Game Financial"), which was sold in
2004, with one casino. The Company recognized a loss from discontinued operations of $0.3 million in the Consolidated Statements of
(Loss) Income in 2007, representing the recognition of a deferred tax asset valuation allowance, partially offset by the reversal of the
remaining liability.
Note 5 — Fair Value Measurement
Effective January 1, 2008, the Company adopted SFAS 157, which:
• defines fair value as the exchange price that would be received for an asset or paid to transfer a liability, or the exit price, in an
orderly transaction between market participants on the measurement date;
• establishes a three-level hierarchy for fair value measurements based upon the observability of the inputs to the valuation of an asset
or liability as of the measurement date;
F-23