Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

v3.19.1
Goodwill and Intangible Assets
3 Months Ended
Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets GOODWILL AND INTANGIBLE ASSETS

The Company records goodwill when an acquisition is made and the purchase price is greater than the fair value assigned to the underlying tangible and intangible assets acquired and the liabilities assumed. The Company's goodwill was allocated to reporting units as follows:
(in thousands)
March 31, 2019
 
December 31, 2018
Consumer Payments
106,832

 
$
106,832

Commercial Payments and Managed Services
2,683

 
2,683

 
$
109,515

 
$
109,515




There were no changes in the carrying amount of goodwill for the quarter ended March 31, 2019.

The Company's intangible assets primarily include merchant portfolios and other intangible assets such as non-compete agreements, trade names, acquired technology (developed internally by acquired companies prior to acquisition by the Company) and customer relationships. As of March 31, 2019 and December 31, 2018, intangible assets consisted of the following:

(in thousands)
March 31, 2019
 
December 31, 2018
Other intangible assets:
 
 
 
Merchant portfolios
$
153,152

 
$
137,576

Non-compete agreements
3,390

 
3,390

Tradename
2,870

 
2,870

Acquired technology
19,890

 
14,390

Customer relationships
124,630

 
55,940

 
303,932

 
214,166

Less accumulated amortization:
 
 
 
Merchant portfolios
(52,891
)
 
(48,492
)
Non-compete agreements
(3,390
)
 
(3,390
)
Trade names
(1,081
)
 
(1,017
)
Acquired technology
(10,981
)
 
(10,222
)
Customer relationships
(28,668
)
 
(26,408
)
 
(97,011
)
 
(89,529
)
 
 
 
 
 
$
206,921

 
$
124,637


 
See Note 2, Acquisitions of Assets, for information about additions made during the first quarter of 2019.

Amortization expense for finite-lived intangible assets was approximately $7.5 million and $2.7 million for the quarters ended March 31, 2019 and 2018, respectively. Amortization expense for future periods could differ due to new intangible asset acquisitions, changes in useful lives of existing intangible assets, and other relevant events or circumstances.

The Company tests goodwill for impairment for each of its reporting units on an annual basis, or when events occur or circumstances indicate the fair value of a reporting unit is below its carrying value. The Company expects to perform its next annual goodwill impairment test as of November 30, 2019 using market data and discounted cash flow analysis. The Company concluded there were no indicators of impairment as of March 31, 2019 or December 31, 2018. As such, there was no accumulated impairment loss as of March 31, 2019 and December 31, 2018.