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Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 9 — Intangibles and Goodwill
Intangible assets at December 31 consist of the following:
2008 2007
Gross Net Gross Net
Carrying Accumulated Carrying Carrying Accumulated Carrying
(Amounts in thousands) Value Amortization Value Value Amortization Value
Amortized intangible assets:
Customer lists $ 29,465 $ (17,486) $ 11,979 $ 38,226 $ (24,143) $ 14,083
Patents — — — 13,218 (12,887) 331
Non-compete agreements 3,417 (2,840) 577 3,567 (1,927) 1,640
Trademarks 981 (150) 831 384 (137) 247
Developed technology 1,519 (358) 1,161 1,373 (69) 1,304
Total intangible assets $ 35,382 $ (20,834) $ 14,548 $ 56,768 $ (39,163) $ 17,605
No impairments of intangible assets were identified during 2008, 2007 and 2006. The Company recorded intangible assets of $1.4 million
in 2008 in connection with the acquisitions of MoneyCard and Cambios Sol, consisting principally of agent rights, developed technology
and a money transfer license. 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 non-compete agreement, and $0.5 million of non-
compete agreements from the finalization of the purchase price allocation for the Money Express acquisition.
Intangible asset amortization expense for 2008, 2007 and 2006 was $4.4 million, $4.3 million and $3.1 million, respectively. The
estimated future intangible asset amortization expense is $3.3 million, $2.8 million, $1.6 million, $1.0 million and $0.7 million for 2009,
2010, 2011, 2012 and 2013, respectively.
Following is a reconciliation of goodwill:
Global Funds Payment Total
(Amounts in thousands) Transfer Systems Goodwill
Balance as of January 1, 2007 $ 401,096 $ 20,220 $ 421,316
Goodwill acquired 23,878 — 23,878
Impairment charge — (6,355) (6,355)
Balance as of December 31, 2007 424,974 13,865 438,839
Goodwill acquired 4,307 — 4,307
Impairment charge — (8,809) (8,809)
Balance as of December 31, 2008 $ 429,281 $ 5,056 $ 434,337
Goodwill allocated to the Global Funds Transfer segment relates to the 2008 acquisitions of MoneyCard and Cambios Sol and the 2007
acquisition of PropertyBridge. The Company also finalized its purchase price allocation in 2007 for the Money Express acquisition
completed in 2006, resulting in a decrease of $0.3 million to goodwill. Goodwill related to these acquisitions is not deductible for tax
purposes.
The Company performed an annual assessment of goodwill during the fourth quarters of 2008, 2007 and 2006. There were no
impairments for 2008 or 2006 as a result of the annual impairment test. However, after evaluating the Company's market opportunity for
certain of its electronic payment services in the fourth quarter of 2008, the Company decided to wind-down the external customer-facing
operations of the business formerly known as ACH
F-35