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Note 8—Goodwill and Intangible Assets
Goodwill and intangible assets on our consolidated balance sheets consisted of the following:
December 31,
2014 2013
(In thousands)
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $144,662 $27,250
Intangible assets, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272,538 3,426
Goodwill and intangible assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $417,200 $30,676
Goodwill
Changes in the carrying amount of goodwill were as follows:
December 31,
2014 2013
(In thousands)
Balance, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $27,250 $27,250
Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117,412 —
Balance, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $144,662 $27,250
During the three months ended December„31, 2014, we completed our annual goodwill impairment test as of
September 30, 2014. Based on the results of step one of the annual goodwill impairment test, we determined that step
two was not required for our reporting unit as their fair value exceeded their carrying value indicating there was no
impairment.
Intangible Assets
The gross carrying amounts and accumulated amortization related to intangibles assets were as follows:
December 31, 2014 December 31, 2013
Gross
Carrying
Value
Accumulated
Amortization
Net Book
Value
Gross
Carrying
Value
Accumulated
Amortization
Net Book
Value
Weighted
Average
Useful Lives
(In thousands) (In thousands) (Years)
Customer relationships . . $236,387 $(4,039) $ 232,348 $—$—$— 14.4
Tradenames. . . . . . . . . . . 37,385 (546)36,839 — 14.8
Patents. . . . . . . . . . . . . . . 3,000 — 3,000 3,000 — 3,000 11.0
Other . . . . . . . . . . . . . . . . 937 (586)351 926 (500)426 9.5
Total intangible assets . . . $277,709 $(5,171) $ 272,538 $3,926 $(500) $ 3,426
Amortization expense, a component of other general and administrative expenses, on finite-lived intangibles was
$4.5 million, $0.1 million, and $0.1 million for the years ended December„31, 2014, 2013, and 2012, respectively. None
of the intangible assets were impaired as of December„31, 2014 or 2013.
The following table shows our estimated amortization expense for intangible assets for each of the next five
succeeding years and thereafter:
December 31,
(In thousands)
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,817
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,816
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,811
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,811
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,730
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173,553
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $272,538
GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
72