MoneyGram 2006 Annual Report Download - page 82

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Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 7. Property and Equipment
Property and equipment consists of the following at December 31:
(Amounts in thousands) 2006 2005
Land $ 2,907 $ —
Office furniture and equipment 40,222 23,167
Leasehold improvements 13,248 8,952
Agent equipment 102,077 77,979
Computer hardware and software 135,108 104,811
293,562 214,909
Accumulated depreciation (144,713) (109,364)
$ 148,849 $ 105,545
Depreciation expense for the year ended December 31 is as follows:
(Amounts in thousands) 2006 2005 2004
Depreciation of office furniture, equipment, $ 2,485 $ 2,043 $ 1,790
Depreciation of leasehold improvements 1,142 1,714 482
Depreciation on agent equipment 13,905 12,732 12,776
Amortization expense of capitalized software 18,314 13,854 12,453
Total depreciation expense $ 35,846 $ 30,343 $ 27,501
At December 31, 2006 and 2005, there is $1.3 million and $1.6 million, respectively, 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."
During the fourth quarter of 2006, the Company decided to discontinue a software development project and recognized an impairment loss
of $0.9 million. This impairment loss relates to the Payment Systems segment and was included in the Consolidated Statement of Income in
"Transaction and operations support."
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