MoneyGram 2011 Annual Report Download - page 111

Table of Contents
an impairment charge of $2.5 million to the Financial Paper Products segment in 2009, which was calculated as the excess of the implied fair value of the
retail money order reporting unit over the carrying amount of goodwill. Goodwill impairment charges are included in the “Transaction and operations
support” line of the Consolidated Statements of Income (Loss).
Following are the gross goodwill balances and accumulated impairments at December 31, 2011 and 2010:
\(Amounts in thousands) Gross Goodwill Accumulated Impairments
Global Funds Transfer $431,867 $ (3,176)
Financial Paper Products 2,487 (2,487)
Other 15,746 (15,746)
Intangible assets are included in “Other assets” in the Consolidated Balance Sheets and consist of the following:
2011 2010
(Amounts in thousands)
Gross
Carrying
Value Accumulated Amortization
Net
Carrying
Value
Gross
Carrying
Value Accumulated Amortization
Net
Carrying
Value
Amortized intangible assets:
Customer lists $ 7,272 $ (6,074) $ 1,198 $15,592 $ (11,149) $ 4,443
Non−compete agreements 137 (68) 69 137 (40) 97
Trademarks and license 597 (1) 596 613 (15) 598
Developed technology 146 (100) 46 1,519 (965) 554
Total intangible assets $ 8,152 $ (6,243) $ 1,909 $17,861 $ (12,169) $ 5,692
In 2011, the Company acquired the agent contracts of a former super−agent in Spain for a purchase price of $1.0 million, which will be amortized over a life
of four years. The acquisition of these agent contracts provides the Company with further network expansion in its money transfer business in its Global
Funds Transfer segment.
The Company recognized an impairment charge of $2.0 million in 2011, primarily due to a disposition of assets and acquisition activity, for certain agent
contracts utilized in the Global Funds Transfer segment. The impairment charge was recorded in the “Other” line in the Consolidated Statements of Income
(Loss). In 2010, the Company recorded impairment charges of $0.4 million related to customer lists as a result of acquired customer terminations in the
“Transaction and operations support” line of the Consolidated Statements of Income (Loss). In 2009, the Company recorded impairment charges of
$3.6 million related to customer lists and trademarks associated with its retail money order business in the “Transaction and operations support” line of the
Consolidated Statements of Income (Loss).
Intangible asset amortization expense for 2011, 2010 and 2009 was $1.2 million, $2.4 million and $3.3 million, respectively. The estimated future intangible
asset amortization expense is $0.4 million, $0.2 million, $0.2 million, $0.1 million and $0.1 million for 2012, 2013, 2014, 2015 and 2016, respectively.
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