Cash America 2008 Annual Report Download - page 107

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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
84
Goodwill x Changes in the carrying value of goodwill for the years ended December 31, 2008 and 2007
were as follows (in thousands):
Pawn Cash Check
Lending Advance Cashing Consolidated
Balance as of January 1, 2008 .......................... $ 143,556 $157,355 $ 5,310 $ 306,221
Acquisitions...................................................... 64,108 126,518 ʊ 190,626
Effect of foreign translation.............................. (2,655) ʊ ʊ (2,655)
Balance as of December 31, 2008 ................ $ 205,009 $ 283,873 $ 5,310 $ 494,192
Balance as of January 1, 2007 .......................... $ 141,700 $ 91,489 $ 5,310 $ 238,499
Acquisitions...................................................... 1,632 65,866 ʊ 67,498
Adjustments...................................................... 224 ʊ ʊ 224
Balance as of December 31, 2007 ................ $ 143,556 $ 157,355 $ 5,310 $ 306,221
Acquired Intangible Assets x Acquired intangible assets that are subject to amortization as of December 31,
2008 and 2007, were as follows (in thousands):
2008 2007
Accumulated Accumulated
Cost Amortization Net Cost Amortization Net
Non-competition agreements . $ 16,435 $ (7,113) $ 9,322 $ 11,155 $ (5,230) $ 5,925
Customer relationships........... 17,702 (8,900) 8,802
9,798 (7,095) 2,703
Lead provider relationships.... 2,489 (944) 1,545
1,939 (501) 1,438
Other ...................................... 456 (159) 297 456 (122) 334
Total .................................. $ 37,082 $ (17,116) $ 19,966 $ 23,348 $ (12,948) $ 10,400
Non-competition agreements are amortized over the applicable terms of the contracts. Customer
and lead provider relationships are generally amortized over five to six years based on the pattern of
economic benefits provided. At December 31, 2008 and 2007, licenses of $7.7 million and trademarks of
$7.8 million and $5.4 million, respectively, obtained in conjunction with acquisitions are not subject to
amortization.
Amortization x Amortization expense for the acquired intangible assets is as follows (in thousands):
Actual amortization expense for the years ended December 31:
2008............................................................................................................................. $ 4,236
2007............................................................................................................................. 4,396
2006............................................................................................................................. 3,653
Estimated future amortization expense for the years ended December 31:
2009............................................................................................................................. $ 6,957
2010............................................................................................................................. 5,190
2011............................................................................................................................. 4,673
2012............................................................................................................................. 1,498
2013............................................................................................................................. 1,269