| NOTE 7 | Other Intangible Assets, net |
In 2013, TSYS allocated $401.6 million to other intangible assets due to the acquisition of NetSpend. In 2012, TSYS allocated $76.6 million to other intangible assets due to the acquisitions of ProPay and CPAY. Refer to Note 23 for more information on acquisitions.
Significant components of other intangible assets as of December 31 are summarized as follows:
| 2013 | ||||||||||||
| (in thousands) | Gross | Accumulated Amortization |
Net | |||||||||
|
Channel relationships |
$ | 318,600 | (20,261 | ) | $ | 298,339 | ||||||
|
Customer relationships |
167,871 | (69,114 | ) | 98,757 | ||||||||
|
Trade name |
46,561 | (6,527 | ) | 40,034 | ||||||||
|
Database |
28,000 | (2,800 | ) | 25,200 | ||||||||
|
Covenants-not-to-compete |
14,940 | (2,887 | ) | 12,053 | ||||||||
|
Trade association |
10,000 | (3,750 | ) | 6,250 | ||||||||
|
Favorable lease |
875 | (89 | ) | 786 | ||||||||
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Total |
$ | 586,847 | (105,428 | ) | $ | 481,419 | ||||||
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| 2012 | ||||||||||||
| (in thousands) | Gross | Accumulated Amortization |
Net | |||||||||
|
Customer relationships |
$ | 167,641 | (49,822 | ) | $ | 117,819 | ||||||
|
Trade association |
10,000 | (2,750 | ) | 7,250 | ||||||||
|
Trade name |
2,537 | (1,504 | ) | 1,033 | ||||||||
|
Channel relationships |
1,600 | (266 | ) | 1,334 | ||||||||
|
Covenants-not-to-compete |
3,440 | (822 | ) | 2,618 | ||||||||
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Total |
$ | 185,218 | (55,164 | ) | $ | 130,054 | ||||||
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Amortization related to other intangible assets, which is recorded in selling, general and administrative expenses, was $50.0 million, $16.6 million and $13.2 million for 2013, 2012 and 2011, respectively.
The weighted average useful life for each component of other intangible assets, and in total, as of December 31, 2013 is as follows:
| Weighted Average Amortization Period (Yrs) |
||||
|
Customer relationships |
8.2 | |||
|
Trade association |
10.0 | |||
|
Trade name |
4.9 | |||
|
Channel relationships |
8.0 | |||
|
Database |
5.0 | |||
|
Favorable Lease |
4.9 | |||
|
Covenants-not-to-compete |
5.3 | |||
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Total |
7.6 | |||
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Estimated future amortization expense of other intangible assets as of December 31, 2013 for the next five years is:
| (in thousands) | ||||
|
2014 |
$ | 77,218 | ||
|
2015 |
75,770 | |||
|
2016 |
75,213 | |||
|
2017 |
74,822 | |||
|
2018 |
60,166 | |||