Green Dot 2012 Annual Report Download - page 80

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GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
70
Note 6—Property and Equipment
Property and equipment consisted of the following:
December 31,
2012 2011
(In thousands)
Land $205 $205
Building 543 568
Computer equipment, furniture, and office equipment 23,690 17,119
Computer software purchased 10,914 6,284
Capitalized internal-use software 52,501 29,673
Tenant improvements 7,076 2,182
94,929 56,031
Less accumulated depreciation and amortization (36,553) (28,750)
Property and equipment, net $58,376 $27,281
Depreciation and amortization expense was $18.1 million, $12.3 million and $7.6 million for the years ended
December 31, 2012, 2011 and 2010, respectively. Included in those amounts are depreciation expense related to
internal-use software of $9.7 million, $6.0 million and $3.8 million for the years ended December 31, 2012, 2011 and
2010, respectively. The net carrying value of capitalized internal-use software was $30.3 million, and $14.6 million at
December 31, 2012 and 2011, respectively.
Note 7—Goodwill and Intangible Assets
Goodwill and intangible assets on our consolidated balance sheets consisted of the following:
December 31,
2012 2011
(In thousands)
Goodwill $27,250 $10,817
Intangible assets, net 3,554 684
Goodwill and intangible assets 30,804 11,501
Goodwill
Changes in the carrying amount of goodwill were as follows:
December 31,
2012 2011
(In thousands)
Balance, beginning of period $10,817 $—
Acquisitions 16,350 10,817
Other changes 83 —
Balance, end of period $27,250 $10,817
In March 2012, we acquired Loopt, which resulted in $16.4 million of goodwill, which is not deductible for tax
purposes, and $3.6 million of indefinite-lived intangibles related to patents.
During the three months ended December 31, 2012, we completed our annual goodwill impairment test as of
September 30, 2012 for all reporting units. Based on the results of step one of the annual goodwill impairment test, we
determined that step two was not required for any of the reporting units as their fair value exceeded their carrying value
indicating there was no impairment.