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Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Depreciation expense for the year ended December 31 is as follows:
(Amounts in thousands) 2010 2009 2008
Office furniture and equipment $ 3,772 $ 4,600 $ 4,055
Leasehold improvements 3,885 3,526 2,593
Agent equipment 8,989 11,449 10,393
Signage 8,688 10,891 11,558
Computer hardware and software 20,314 23,351 23,692
Total depreciation expense $ 45,648 $ 53,817 $ 52,291
At December 31, 2010 and 2009, there was $3.9 million and $1.2 million, respectively, of property and equipment that had been received
by the Company and included in "Accounts payable and other liabilities" in the Consolidated Balance Sheets.
In connection with its decision to sell its corporate airplane, the Company recognized a $7.0 million impairment charge in 2009 and a
$1.5 million impairment charge in 2010. The sale was completed in the third quarter of 2010. In 2009, the Company fully impaired
$1.4 million of software related to its ACH Commerce business based on changes in its exit plan. In 2008, the Company decided to
discontinue certain software development projects and recognized an impairment charge of $0.9 million. All impairment charges are
included in the "Transaction and operations support" line in the Consolidated Statements of Income (Loss).
Note 8 — Goodwill and Intangible Assets
Following is a roll-forward of goodwill by reporting segment:
Global Funds Transfer Financial Paper Products Other
(Amounts in thousands) 2010 2009 2010 2009 2010 2009
Balance at beginning of year:
Goodwill $ 428,806 $ 426,794 $ 2,487 $ 2,487 $ 15,746 $ 20,220
Accumulated impairment charges (3,176) — (2,487) — (15,746) (15,164)
425,630 426,794 — 2,487 — 5,056
Goodwill acquired 3,061 2,012 — — — —
Impairment charge — (3,176) — (2,487) — (582)
Divestitures — — — — — (4,474)
Balance at end of year:
Goodwill 431,867 428,806 2,487 2,487 15,746 15,746
Accumulated impairment charges (3,176) (3,176) (2,487) (2,487) (15,746) (15,746)
$ 428,691 $ 425,630 $ — $ — $ — $ —
Goodwill acquired in 2010 relates to the acquisition of Blue Dolphin. Goodwill acquired in 2009 relates to the acquisition of Raphaels
Bank. Goodwill related to these acquisitions is not deductible for tax purposes.
The Company impaired $3.2 million of goodwill in 2009 allocated to the Global Funds Transfer segment associated with a decision to
discontinue certain bill payment product offerings. In connection with the sale of FSMC in 2009, the Company recorded a charge of
$0.6 million to impair goodwill that was in excess of the final sale price. In addition, goodwill was reduced by $4.5 million from the sale
of FSMC. The FSMC reporting unit is not a component of the Global Funds Transfer or Financial Paper Products segments.
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