Worldpay, Inc. - 10-Q filing on 2015-04-30

GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill, by business segment, are as follows (in thousands):



	Merchant Services		Financial Institution Services		Total
Balance as of December 31, 2014	$	2,716,516	$	574,850	$	3,291,366
Goodwill attributable to acquisition of Mercury (1)	2,321		—		2,321
Balance as of March 31, 2015	$	2,718,837	$	574,850	$	3,293,687

(1) Amount represents adjustments to goodwill associated with the acquisition of Mercury as a result of an update to the purchase price allocation, primarily related to revisions of certain estimates from the preliminary amounts reported as of December 31, 2014.

As of March 31, 2015 and December 31, 2014, the Company's intangible assets consisted of the following (in thousands):



	March 31, 2015		December 31, 2014
Customer relationship intangible assets	$	1,596,581	$	1,596,581
Trade names - finite lived	65,833		65,833
Customer portfolios and related assets	59,508		57,383
	1,721,922		1,719,797

Less accumulated amortization on:
Customer relationship intangible assets	697,566		655,017
Trade names - finite lived	7,502		5,105
Customer portfolios and related assets	29,269		24,983
	734,337		685,105
	$	987,585	$	1,034,692

Customer portfolios and related assets acquired during the three months ended March 31, 2015 have a weighted-average amortization period of 4.4 years. Amortization expense on intangible assets for the three months ended March 31, 2015 and 2014 was $49.2 million and $33.3 million, respectively.

The estimated amortization expense of intangible assets for the next five years is as follows (in thousands):



Nine months ending December 31, 2015	$	141,911
2016	176,702
2017	163,045
2018	155,074
2019	147,671
2020	82,735