First Data 2009 Annual Report Download - page 112

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
line of the Consolidated Balance Sheets). The excess of the purchase price over the net tangible and identifiable
intangible assets was recorded as goodwill. The Company finalized its purchase accounting in the third quarter of
2008 though certain adjustments related to income tax matters were made in the fourth quarter 2008.
(in millions)
Property and equipment .................................................... $ 1,047.3
Customer relationships ..................................................... 6,353.3
Software ................................................................ 852.5
Trade names ............................................................. 813.6
Other intangibles .......................................................... 157.0
Goodwill ................................................................ 18,354.2
Investment in affiliates ..................................................... 3,596.0
Deferred taxes ............................................................ (3,408.7)
Other assets and liabilities acquired, net ........................................ (1,180.2)
Total purchase price ................................................... $26,585.0
The estimated weighted-average useful lives (excluding the impact of accelerated amortization and the First
Data trade name which was determined to have an indefinite life) associated with intangible assets are
approximately:
Customer relationships .............................................. 14years
Software .......................................................... 6years
Trade names ....................................................... 15years
Other intangibles ................................................... 16years
Investment in affiliates .............................................. 11years
Total weighted-average useful lives .................................... 13years
The Company generally uses straight-line amortization for intangible assets other than for customer
relationships for which the pattern of economic benefits are known and for which an accelerated method of
amortization is used to more appropriately allocate the cost of the relationships to the periods that will benefit
from them. Deferred tax liabilities were recorded related to the allocation of the purchase price to intangible
assets. Less than 5% of goodwill resulting from the merger is deductible for tax purposes at a local jurisdiction
level. The allocation of goodwill by segment was as follows (in millions):
Retail and Alliance Services ......................................... $11,654.8
Financial Services ................................................. 3,471.9
International ..................................................... 3,077.4
Integrated Payment Systems ......................................... —
All Other and Corporate ............................................ 150.1
$18,354.2
Goodwill is reviewed at least annually for impairment. The Company performed its annual goodwill
impairment test in the fourth quarter 2009 and 2008 and recorded impairments of approximately $17 million and
$3.2 billion, respectively, as discussed in Note 3.
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