NetSpend 2013 Annual Report Download - page 50

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NOTE 5 Prepaid Expenses and Other Current Assets
Significant components of prepaid expenses and other current assets as of December 31 are summarized as
follows:
(in thousands) 2013 2012
Prepaid expenses ............................................................... $42,341 24,615
Supplies inventory ............................................................... 12,927 8,881
Other ......................................................................... 41,427 36,710
Total ........................................................................ $96,695 70,206
NOTE 6 Goodwill
In 2013, the Company allocated $1.0 billion to goodwill due to the acquisition of NetSpend. During 2012, the
Company allocated $162.1 million to goodwill due to the acquisitions of ProPay and CPAY.
The gross amount and accumulated impairment losses of goodwill as of December 31, 2013 and 2012 is as
follows:
2013
(in thousands) North America
Services International
Services Merchant
Services NetSpend Consolidated
Gross amount ........................ $70,796 34,201 415,973 1,024,434 $1,545,404
Accumulated impairment losses ......... — — (2,225) — (2,225)
Goodwill, net ....................... $70,796 34,201 413,748 1,024,434 $1,543,179
2012
(in thousands) North America
Services International
Services Merchant
Services NetSpend Consolidated
Gross amount ........................... $70,796 33,944 415,829 — $520,569
Accumulated impairment losses ............ — — (2,225) — (2,225)
Goodwill, net .......................... $70,796 33,944 413,604 — $518,344
The changes in the carrying amount of goodwill as of December 31, 2013 and 2012 are as follows:
(in thousands) North America
Services International
Services Merchant
Services NetSpend Consolidated
Balance as of December 31, 2011 ........ $70,796 33,188 251,514 — $ 355,498
CPAY purchase price allocation .......... — — 68,570 — 68,570
ProPay purchase price allocation ......... — — 93,520 — 93,520
Currency translation adjustments ........ — 756 — — 756
Balance as of December 31, 2012 ........ 70,796 33,944 413,604 — 518,344
NetSpend purchase price allocation .... — — — 1,024,434 1,024,434
ProPay purchase price allocation ....... — — 144 — 144
Currency translation adjustments ...... — 257 — — 257
Balance as of December 31, 2013 ...... $70,796 34,201 413,748 1,024,434 $1,543,179
Refer to Note 23 for more information on acquisitions.
NOTE 7 Other Intangible Assets, net
In 2013, TSYS allocated $401.6 million to other intangible assets due to the acquisition of NetSpend. In 2012,
TSYS allocated $76.6 million to other intangible assets due to the acquisitions of ProPay and CPAY. Refer to
Note 23 for more information on acquisitions.
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