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Table of Contents
the Consolidated Statements of Operations in the period of change. See Note 6 — Derivative Financial Instruments for additional disclosure.
Property and Equipment
—
Property and equipment includes equipment at agent locations, communication equipment, computer hardware,
computer software, leasehold improvements, office furniture and equipment, land and signs, and is stated at cost net of accumulated
depreciation. Property and equipment, with the exception of land, is depreciated using a straight-
line method over the useful life or term of the
lease or license. Land is not depreciated. The cost and related accumulated depreciation of assets sold or disposed of are removed from the
financial statements, with the resulting gain or loss, if any, recognized in “Occupancy, equipment and supplies”
in the Consolidated Statements
of Operations. See Note 7 — Property and Equipment for additional disclosure. The following table summarizes the e
stimated useful lives by
major asset category:
Tenant allowances for leasehold improvements are capitalized as leasehold improvements upon completion of the improvement and depreciated
over the shorter of the remaining term of the lease or 10 years .
For the years ended December 31, 2013 and 2012 , software development costs of $14.1 million and $18.9 million
, respectively, were
capitalized. At December 31, 2013 and 2012 , there was $50.3 million and $48.7 million
, respectively, of unamortized software development
costs included in property and equipment.
Fixed assets and capitalized software are tested for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable by comparing the carrying value of the assets to the estimated future undiscounted cash flows to be generated by the
asset. If an impairment is determined to exist for fixed assets or capitalized software, the carrying value of the asset is reduced to the estimated
fair value.
Goodwill and Intangible Assets —
Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business
combinations and is assigned to the reporting unit in which the acquired business will operate. Intangible assets are recorded at their estimated
fair value at the date of acquisition or at cost if internally developed. In the year following the period in which identified intangible assets
become fully amortized, the fully amortized balances are removed from the gross asset and accumulated amortization amounts. Goodwill and
intangible assets with indefinite lives are not amortized, but are instead subject to impairment testing. Intangible assets with finite lives are
amortized using a straight-line method over their respective useful lives as follows:
Goodwill is tested for impairment using a fair-
value based approach, and is assessed at the reporting unit level. The carrying value of the
reporting unit is compared to its estimated fair value, with any excess of carrying value over fair value deemed to be an indicator of potential
impairment, in which case a second step is performed comparing the recorded amount of goodwill to its implied fair value. Intangible assets with
finite lives and other long-
lived assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable by comparing the carrying value of the assets to the estimated future undiscounted cash flows to be generated by the
asset. If an impairment is determined to exist for goodwill or intangible assets, the carrying value of the asset is reduced to the estimated fair
value.
The Company has historically evaluated its goodwill and other indefinite-
lived intangible assets for impairment annually as of November 30 or
more frequently if impairment indicators arose in accordance with Accounting Standards Codification (“ASC”) Topic 350, “Intangibles -
Goodwill and Other.” In the fourth quarter of 2013, the Company changed the date of its annual assessment
F-13
Type of Asset Useful Life
Equipment at agent locations 3 - 7 years
Communication equipment 5 years
Computer hardware 3 years
Computer software 5 - 7 years
Leasehold improvements 10 years
Office furniture and equipment 7 years
Signage 3 years
Type of Intangible Asset Useful Life
Agent rights and consumer relationships 4-15 years
Patents 15 years
Non-compete agreements 3-5 years
Trademarks and licenses 36-40 years
Developed technology 5 years