MoneyGram 2007 Annual Report Download - page 103

Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
trusts, including the sold receivables, are not recorded or consolidated in our financial statements. Under the agreement, the aggregate
amount of receivables sold at any time cannot exceed $400.0 million through December 31, 2007 and $300.0 million thereafter. The
balance of sold receivables as of December 31, 2007 and 2006 was $239.0 million and $297.6 million, respectively. The average
receivables sold approximated $349.9 million and $382.6 million during 2007 and 2006, respectively. The agreement included a
5 percent holdback provision of the purchase price of the receivables. This expense of selling the agent receivables is included in the
Consolidated Statements of (Loss) Income in "Investment commissions expense" and totaled $23.3 million, $23.9 million and
$16.9 million during 2007, 2006 and 2005, respectively.
Note 7 — Property and Equipment
Property and equipment consists of the following at December 31:
(Amounts in thousands) 2007 2006
Land $ 2,907 $ 2,907
Office furniture and equipment 44,285 40,222
Leasehold improvements 17,378 13,248
Agent equipment 88,160 72,602
Signage 43,178 29,475
Computer hardware and software 159,266 135,108
355,174 293,562
Accumulated depreciation (184,166) (144,713)
Total property and equipment $ 171,008 $ 148,849
Depreciation expense for the year ended December 31 is as follows :
(Amounts in thousands) 2007 2006 2005
Office furniture and equipment $ 4,131 $ 2,485 $ 2,043
Leasehold improvements 1,728 1,142 1,714
Agent equipment 8,585 8,453 9,616
Signage 9,814 5,452 3,116
Computer hardware and software 23,415 18,314 13,854
Total depreciation expense $ 47,673 $ 35,846 $ 30,343
At December 31, 2007 and 2006, there is $0.7 million and $1.3 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 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
(Loss) Income in "Transaction and operations support."
In January 2005, the Company acquired a 50 percent interest in a corporate aircraft owned by Viad at a cost of $8.6 million. The
Company paid 50 percent of all fixed costs associated with this asset and was responsible for the variable costs associated with its direct
usage of the asset. In January 2006, the Company acquired the remaining 50 percent interest in the corporate aircraft at a cost of
$10.0 million.
F-29