First Data 2014 Annual Report Download - page 61
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generally ranges from three to 25 years. The intangible amortization expense associated with customer relationships and other intangibles, including
amortization associated with investments in affiliates, was as follows:
2014 $ 876.6
2013 923.5
2012 1,046.4
The carrying value of the First Data trade name is $604 million as of December 31, 2014 and 2013. Upon consideration of many factors, including the
determination that there are no legal, regulatory or contractual provisions that limit the useful life of the First Data trade name, the Company determined that
the First Data trade name had an indefinite useful life. The Company also considered the effects of obsolescence, demand, competition, other economic
factors, and ability to maintain and protect the trade name without significant expenditures. The First Data trade name is expected to contribute directly or
indirectly to the future cash flows of the Company for an indefinite period. As an indefinite lived asset, the First Data trade name is not amortized but is
reviewed annually for impairment until such time as it is determined to have a finite life. The First Data trade name was not impaired as of December 31, 2014
or 2013.
The following table provides the components of other intangibles:
Customer relationships
$ 7,474.9
$ (4,870.8)
$ 2,604.1
$ 7,580.6
$ (4,418.3)
$ 3,162.3
Other intangibles:
Conversion costs
$ 205.0
$ (88.8)
$ 116.2
$ 166.6
$ (71.3)
$ 95.3
Contract costs
234.8
(130.6)
104.2
218.0
(110.8)
107.2
Software
1,856.0
(1,415.1)
440.9
1,649.4
(1,264.3)
385.1
Other, including trade names
1,414.7
(330.6)
1,084.1
1,429.1
(297.1)
1,132.0
Total other intangibles
$ 3,710.5
$ (1,965.1)
$ 1,745.4
$ 3,463.1
$ (1,743.5)
$ 1,719.6
The estimated future aggregate amortization expense for the next five years is as follows:
2015 $ 750.8
2016 588.2
2017 486.2
2018 419.0
2019 364.7
The Company tests contract and conversion costs for recoverability on an annual basis by comparing the remaining expected undiscounted cash flows under
the contract to the net book value. Any assets that are determined to be unrecoverable are written down to their fair value. In addition to this annual test, these
assets and all other long lived assets are tested for impairment upon an indicator of potential impairment.
Fair value is defined by accounting guidance as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The Company uses the hierarchy prescribed in the accounting guidance for fair value measurements,
based upon the available inputs to the valuation and the degree to which they
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