MasterCard 2008 Annual Report Download - page 108

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except percent and per share data)
Note 7. Property, Plant and Equipment
Property, plant and equipment consist of the following at December 31:
2008 2007
Equipment ............................................... $250,395 $ 233,140
Building and land .......................................... 216,670 207,110
Furniture and fixtures ....................................... 51,124 45,577
Leasehold improvements .................................... 66,878 55,261
585,067 541,088
Less accumulated depreciation and amortization ................. (278,269) (250,888)
$ 306,798 $ 290,200
As of December 31, 2008 and 2007, capital leases of $46,794 and $45,900, respectively, were included in
equipment. Accumulated amortization of capital leases was $36,180 and $33,488 as of December 31, 2008 and
2007, respectively.
Depreciation expense for the above property, plant and equipment, including amortization for capital leases
was $59,097, $49,311 and $43,445 for the years ended December 31, 2008, 2007 and 2006, respectively.
Note 8. Goodwill
The changes in the carrying amount of goodwill for the years ended December 31, 2008 and 2007 are as
follows:
Balance as of December 31, 2006 ......................................... $217,013
Foreign currency translation ............................................. 22,613
Balance as of December 31, 2007 ......................................... 239,626
Acquisition of businesses ................................................ 67,066
Foreign currency translation ............................................. (8,699)
Balance as of December 31, 2008 ......................................... $297,993
No impairment charges were recorded in 2008, 2007 or 2006.
Note 9. Other Intangible Assets
The following table sets forth net intangible assets, other than goodwill, at December 31:
2008 2007
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Amortized intangible assets:
Capitalized software ............... $513,587 $(348,022) $165,565 $422,739 $(319,067) $103,672
Trademarks and tradenames ......... 24,761 (23,314) 1,447 25,259 (22,609) 2,650
Customer relationships ............. 20,910 (620) 20,290 — — —
Other ........................... 6,304 (5,614) 690 6,304 (6,301) 3
Total ..................... 565,562 (377,570) 187,992 454,302 (347,977) 106,325
Unamortized intangible assets:
Customer relationships ............. 206,290 — 206,290 214,433 — 214,433
Total ......................... $771,852 $(377,570) $394,282 $668,735 $(347,977) $320,758
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