Western Union 2013 Annual Report Download - page 218

2013 FORM 10-K
THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
108
All assets and liabilities have been recorded at fair value, excluding deferred tax liabilities. The valuation of assets acquired
was derived using primarily unobservable Level 3 inputs, which require significant management judgment and estimation, and
resulted in identifiable intangible assets as follows (in millions):
Travelex Global
Business
Payments (a) Finint S.r.l.
Angelo Costa
S.r.l.
Customer and other contractual relationships . . . . . . . . . . . . . . . . . . . . . . . . . $ 264.5 $ — $ —
Network of subagents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 53.9 44.6
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49.7 10.9 6.8
Total identifiable intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 314.2 $ 64.8 $ 51.4
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(a) Amounts include the impact of the acquisition of the French assets of TGBP on May 4, 2012.
Customer and other contractual relationships and network of subagents identifiable intangible assets were valued using an
income approach and are being amortized over 9 to 15 years. Other intangibles were valued using both income and cost approaches
and are being amortized over one to five years. For the remaining assets and liabilities, excluding goodwill and deferred tax
liabilities, fair value approximated carrying value.
The goodwill recognized for TGBP of $704.3 million is attributable to expected synergies, the projected long-term business
growth in current and new markets and an assembled workforce and relates entirely to the Business Solutions segment. The goodwill
recognized for Finint and Costa of $153.6 million and $174.2 million, respectively, is attributable to growth opportunities that will
arise from the Company directly managing its agent relationships, expected synergies, projected long-term business growth and
an assembled workforce and relates entirely to the Consumer-to-Consumer segment. Goodwill expected to be deductible for income
tax purposes for TGBP, Finint and Costa is approximately $488.4 million, $97.0 million and $104.9 million, respectively.
The following table presents changes to goodwill for the years ended December 31, 2013 and 2012 (in millions):
Consumer-to-
Consumer
Consumer-to-
Business
Business
Solutions Other Total
January 1, 2012 balance . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,945.3 $ 224.9 $ 1,013.7 $ 15.0 $ 3,198.9
Purchase price adjustments. . . . . . . . . . . . . . . . . . . . . . . . 2.4 — (24.4) — (22.0)
Currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —(3.8) 6.7 (0.1) 2.8
December 31, 2012 balance . . . . . . . . . . . . . . . . . . . . . . . $ 1,947.7 $ 221.1 $ 996.0 $ 14.9 $ 3,179.7
Currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —(6.4) — (1.3)(7.7)
December 31, 2013 balance . . . . . . . . . . . . . . . . . . . . . . . $ 1,947.7 $ 214.7 $ 996.0 $ 13.6 $ 3,172.0