TOTAL SYSTEM SERVICES INC | 2013 | FY | 3


NOTE 6 Goodwill

In 2013, the Company allocated $1.0 billion to goodwill due to the acquisition of NetSpend. During 2012, the Company allocated $162.1 million to goodwill due to the acquisitions of ProPay and CPAY.

The gross amount and accumulated impairment losses of goodwill as of December 31, 2013 and 2012 is as follows:

 

 

 

     2013  
(in thousands)    North America
Services
     International
Services
     Merchant
Services
    NetSpend      Consolidated  

Gross amount

   $ 70,796         34,201         415,973        1,024,434       $ 1,545,404   

Accumulated impairment losses

                     (2,225             (2,225
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Goodwill, net

   $ 70,796         34,201         413,748        1,024,434       $ 1,543,179   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

 

 

 

 

 

     2012  
(in thousands)    North America
Services
     International
Services
     Merchant
Services
    NetSpend      Consolidated  

Gross amount

   $ 70,796         33,944         415,829              $ 520,569   

Accumulated impairment losses

                     (2,225             (2,225
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Goodwill, net

   $ 70,796         33,944         413,604              $ 518,344   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

 

 

The changes in the carrying amount of goodwill as of December 31, 2013 and 2012 are as follows:

 

 

 

(in thousands)    North America
Services
     International
Services
     Merchant
Services
     NetSpend      Consolidated  

Balance as of December 31, 2011

   $ 70,796         33,188         251,514               $ 355,498   

CPAY purchase price allocation

                     68,570                 68,570   

ProPay purchase price allocation

                     93,520                 93,520   

Currency translation adjustments

             756                         756   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of December 31, 2012

     70,796         33,944         413,604                 518,344   

NetSpend purchase price allocation

                             1,024,434         1,024,434   

ProPay purchase price allocation

                     144                 144   

Currency translation adjustments

             257                         257   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of December 31, 2013

   $ 70,796         34,201         413,748         1,024,434       $ 1,543,179   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

Refer to Note 23 for more information on acquisitions.

 


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