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goodwill was assigned to that segment. The goodwill recognized is expected to be deductible for income tax purposes. 

The following table summarizes the consideration paid for TMS and the amounts of the assets acquired and liabilities assumed recognized on April 1, 2010 (the acquisition date), as well as the fair value at the acquisition date of the noncontrolling interest in TMS. TSYS assumed no liabilities in connection with the acquisition. 

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The Investment Agreement includes a contingent right of TSYS to receive a return of consideration paid (“contingently returnable consideration”) if certain specified major customer contracts are terminated or modified prior to the first anniversary of the closing. Contingently returnable consideration is recognized as an asset and measured at fair value. Based upon the probability of out- comes, TSYS determined the fair value of the contingently return- able consideration would approximate zero. The maximum amount of contingently returnable consideration is not significant. 

The fair value of the acquired identifiable intangible assets of $100.8 million was estimated using the income approach (dis- counted cash flow and relief from royalty methods) and cost 

approach. At the time of the acquisition, TSYS had identified certain intangible assets that are expected to generate future earnings for the Company: customer-related intangible assets (such as customer lists), contract-based intangible assets (such as referral agreements), technology, and trademarks. The useful lives of the identified intangible assets were primarily determined by forecasted cash flows, which include estimates for certain assumptions such as revenues, expenses, attrition rates, and royalty rates. The useful lives of these identified assets ranged from 3 to 10 years and are being amortized on a straight-line basis based upon their estimated pattern of economic benefit. 

This fair value measurement is based on significant inputs that are not observable in the market and thus represents a Level 3 mea- surement as defined in ASC 820. Key assumptions include (a) cash flow projections based on market participant and internal data, (b) a discount rate range of 4 percent to 14 percent, (c) a royalty rate range of 1.5 percent to 7 percent, (d) an attrition rate range of 10 percent to 30 percent, and (e) an effective tax rate of approx- imately 36 percent. 

The fair value of the noncontrolling interest in TMS, owned by a private company, was estimated by applying the income and market approaches. In particular, a discounted cash flow method, a guideline companies method, and a recent equity transaction were employed. This fair value measurement is based on signif- icant inputs that are both observable (Level 2) and non-observable (Level 3) in the market as defined in ASC 820. Key assumptions include (a) cash flow projections based on market participant data and developed by Company management, (b) a discount rate range of 12 percent to 14 percent, (c) a terminal value based on long-term sustainable growth rates ranging between 3 percent and 5 percent, (d) an effective tax rate of approximately 36 per- cent, (e) financial multiples of companies deemed to be similar to TMS, and (f) adjustments because of the lack of control or lack of marketability that market participants would consider when esti- mating the fair value of the noncontrolling interest in TMS. 

Since the acquisition of TMS, TSYS has included approximately $97.7 million in revenues associated with TMS for the year ended December 31, 2010, respectively. For the year ended December 31, 2010, TSYS has included approximately $5.6 mil- lion in income netted against acquisition related costs associated with TMS. 

The amounts of TMS revenue and earnings included in TSYS’ consolidated income statement for the year ended December 31, 2010, and the pro forma revenue and earnings of the combined 

