MoneyGram 2005 Annual Report Download - page 78

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Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Included in computer hardware and software are capitalized software development costs totaling $35.4 million and $31.4 million at December 31, 2005 and
2004, respectively. At December 31, 2005, 2004 and 2003, there is $1.6 million, $0.1 million and $0.6 million of property and equipment which has been
received by the Company and included in "Accounts payable and other liabilities" in the Consolidated Balance Sheets.
During 2004, the Company determined that an impairment existed on $4.5 million of software costs related primarily to a joint development project with
Concord EFS utilizing ATMs to facilitate money transfers and other discontinued projects. The impairment loss was related to our Global Funds Transfer
segment and is included in the Consolidated Statement of Income in "Transaction and operations support."
Note 8. Intangibles and Goodwill
Intangible assets at December 31 were as follows:
2005 2004
Gross Net Gross Net
Carrying Accumulated Carrying Carrying Accumulated Carrying
Value Amortization Value Value Amortization Value
(Dollars in thousands)
Amortized intangible assets:
Customer lists $ 29,312 $ (19,942) $ 9,370 $ 28,688 $ (18,491) $ 10,197
Patents 13,200 (11,636) 1,564 13,200 (11,010) 2,190
Trademarks and other 630 (206) 424 481 (161) 320
43,142 (31,784) 11,358 42,369 (29,662) 12,707
Unamortized intangible assets:
Pension intangible assets 1,890 — 1,890 2,503 — 2,503
Total intangible assets $ 45,032 $ (31,784) $ 13,248 $ 44,872 $ (29,662) $ 15,210
During the third quarter of 2004, the Company evaluated the recoverability of certain purchased customer list intangibles due to the expected departure of a
particular customer. To determine recoverability, the Company estimated future cash flows over the remaining useful life and calculated the fair value. An
impairment loss of $2.1 million was recognized for the amount in which the carrying amount exceeded the fair value amount. This loss is included on the
Consolidated Statement of Income in "Transaction and operations support" and relates to our Payment Systems segment. No impairments were identified
during 2005.
Intangible asset amortization expense for 2005, 2004 and 2003 was $2.1 million, $2.1 million and $1.9 million, respectively. Estimated remaining
amortization expense is $2.1 million, $1.9 million, $1.6 million, $1.3 million and $1.3 million for the years ending December 31, 2006, 2007, 2008, 2009 and
2010, respectively. F-24