| Schedule of Goodwill |
The Company's goodwill was allocated to reporting units as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in thousands) |
December 31, 2020 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
| Consumer Payments |
$ |
106,832 |
|
|
$ |
106,832 |
|
|
|
| Integrated Partners |
— |
|
|
2,683 |
|
|
|
| |
$ |
106,832 |
|
|
$ |
109,515 |
|
|
|
The following table summarizes the changes in the carrying value of goodwill for the years ended December 31, 2020, 2019 and 2018:
|
|
|
|
|
|
| (in thousands) |
Amount |
|
|
| Balance at January 1, 2018 (all Consumer Payments) |
$ |
101,532 |
|
| Additions for the year ended December 31, 2018: |
|
| PayRight (Integrated Partners) |
298 |
|
| RadPad/Landlord Station (Integrated Partners) |
2,385 |
|
| PPS Northeast (Consumer Payments) |
1,920 |
|
| PPS Tech (Consumer Payments) |
3,380 |
|
| Balance at December 31, 2019 and 2018 |
109,515 |
|
|
|
|
(2,683) |
|
| Balance at December 31, 2020 |
$ |
106,832
|
|
|
| Schedule of Other Intangible Assets |
At December 31, 2020 and December 31, 2019, other intangible assets consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|
|
| (in thousands) |
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
| Capitalized: |
|
|
|
|
|
|
|
| Merchant portfolios |
$ |
55,816 |
|
|
$ |
114,554 |
|
|
|
|
|
| Customer relationships |
40,740 |
|
|
40,740 |
|
|
|
|
|
| Residual buyouts |
116,112 |
|
|
112,731 |
|
|
|
|
|
| Non-compete agreements |
3,390 |
|
|
3,390 |
|
|
|
|
|
| Trade names |
2,870 |
|
|
2,870 |
|
|
|
|
|
| Technology |
14,390 |
|
|
15,390 |
|
|
|
|
|
| ISO relationships |
15,200 |
|
|
15,200 |
|
|
|
|
|
| Total capitalized |
$ |
248,518 |
|
|
$ |
304,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Less accumulated amortization: |
|
|
|
|
|
|
|
| Merchant portfolios |
$ |
(19,471) |
|
|
$ |
(12,655) |
|
|
|
|
|
| Customer relationships |
(30,267) |
|
|
(25,836) |
|
|
|
|
|
| Residual buyouts |
(72,659) |
|
|
(59,796) |
|
|
|
|
|
| Non-compete agreements |
(3,390) |
|
|
(3,390) |
|
|
|
|
|
| Trade names |
(1,651) |
|
|
(1,273) |
|
|
|
|
|
| Technology |
(13,951) |
|
|
(12,758) |
|
|
|
|
|
| ISO relationships |
(7,319) |
|
|
(6,341) |
|
|
|
|
|
| Total accumulated amortization |
$ |
(148,708) |
|
|
$ |
(122,049) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accumulated allowance for impairment |
$ |
(1,753) |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net carrying value |
$ |
98,057 |
|
|
$ |
182,826 |
|
|
|
|
|
The weighted-average amortization periods for intangible assets held at December 31, 2020 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Useful Life |
|
Amortization Method |
|
Weighted-Average Life |
|
|
|
|
|
|
| Merchant portfolios |
5 - 6 years |
|
Straight-line |
|
5.5 years |
| Residual buyouts |
1 - 9 years |
|
Straight-line and double declining |
|
6.8 years |
| Non-compete agreements |
3 years |
|
Straight-line |
|
3.0 years |
| Trade names |
5 -12 years |
|
Straight-line |
|
11.6 years |
| Technology |
6 - 7 years |
|
Straight-line |
|
6.1 years |
| ISO relationships |
11 - 25 years |
|
Sum-of-years digits |
|
23.7 years |
| Customer relationships |
10 - 15 years |
|
Straight-line and sum-of-years digits |
|
11.0 years |
|
| Schedule of Finite-lived Intangible Assets Amortization Expense |
The estimated amortization expense of intangible assets as of December 31, 2020 for the next five years and thereafter is:
|
|
|
|
|
|
|
|
|
| (in thousands) |
|
|
|
|
Estimated |
| Year Ending December 31, |
|
Amortization Expense |
| 2021 |
|
$ |
28,216 |
|
| 2022 |
|
27,066 |
|
| 2023 |
|
21,280 |
|
| 2024 |
|
10,126 |
|
| 2025 |
|
3,671 |
|
| Thereafter |
|
7,698 |
|
| Total |
|
$ |
98,057 |
|
|