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Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The Company finalized its purchase price allocation in 2010, resulting in $3.1 million of goodwill assigned to the Company's Global
Funds Transfer segment, and the forgiveness of $2.7 million of liabilities. The Company incurred $0.1 million of transaction costs related
to the acquisition in 2010, which are included in the "Transaction and operations support" line in the Consolidated Statements of Income
(Loss). The operating results of Blue Dolphin subsequent to the acquisition date are included in the Company's Consolidated Statements
of Income (Loss). The financial impact of the acquisition is not material to the Consolidated Balance Sheets or Consolidated Statements
of Income (Loss).
R. Raphaels & Sons PLC — On February 2, 2009, the Company acquired the French assets of R. Raphaels & Sons PLC ("Raphaels
Bank") for a purchase price of $3.2 million. The acquisition of Raphaels Bank provided the Company with five money transfer stores in
and around Paris, France that have been integrated into its French retail operations.
The Company finalized its purchase price allocation in 2010, resulting in $2.0 million of goodwill assigned to the Company's Global
Funds Transfer segment. The Company incurred $0.2 million of transaction costs related to this acquisition in 2008 which are included in
the "Transaction and operations support" line in the Consolidated Statements of Income (Loss). The operating results of Raphaels Bank
subsequent to the acquisition date are included in the Company's Consolidated Statements of Income (Loss). The financial impact of the
acquisition is not material to the Consolidated Balance Sheets or Consolidated Statements of Income (Loss).
FSMC, Inc. — On May 15, 2009, the Company's subsidiary FSMC, Inc. ("FSMC"), entered into an asset purchase agreement with
Solutran, Inc. to sell certain assets and rights for a price of $4.5 million. As a result of the sale, which was completed in the third quarter
of 2009, the Company recorded an impairment charge of $0.6 million to write off goodwill associated with FSMC. This impairment
charge is recorded in the "Transaction and operations support" line in the Consolidated Statements of Income (Loss). The operating
results of FSMC are not material to the Company's Consolidated Statements of Income (Loss) and the assets and liabilities are not
material to the Company's Consolidated Balance Sheets. FSMC is included in the Company's "Other" results for segment reporting
purposes.
ACH Commerce — 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 impairment charge of $8.8 million to write off the goodwill associated with ACH Commerce. In the third quarter of 2009, the
Company recorded an impairment charge of $1.4 million on its proprietary software related to ACH Commerce. The impairment charge
was recorded in the "Transaction and operations support" line in the Consolidated Statements of Income (Loss). ACH Commerce is not
material to the Consolidated Statements of Income (Loss) or the Consolidated Balance Sheets. ACH Commerce is included in the
Company's "Other" results for segment reporting purposes.
MoneyCard World Express, S.A. and Cambios Sol S.A. — In July 2008, the Company acquired MoneyCard World Express, S.A.
("MoneyCard") and Cambios Sol S.A. ("Cambios Sol"), two of its former super-agents in Spain, for purchase prices of $3.4 million and
$4.5 million, respectively, including cash acquired of $1.4 million and $4.1 million, respectively. The acquisition of these money transfer
entities provided the Company with a money transfer license in Spain, as well as the opportunity for further network expansion and more
control over marketing and promotional activities in the region.
F-20