Navy Federal Credit Union 2013 Annual Report Download - page 55

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Navy Federal Credit Union • 2013 Financial Section
35
2013 ANNUAL REPORT
NOTE 14:
The following is a summary of Navy Federal’s property, plant, and equipment at December 31, 2013
and 2012:
(dollars in thousands)  
Land and buildings $ 799,887 $ 731,925
Equipment, furniture, and fixtures 446,480 365,418
Computer software and capitalized IT projects 409,513 424,745
Leasehold improvements 113,488 106,599
Subtotal 1,769,368 1,628,687
Less: Accumulated depreciation (876,039) (786,402)
Total $  $
Navy Federal has obligations under a number of non-cancelable operating leases for premises. The
future minimum payments under the terms of the leases as of December 31, 2013 were:
(dollars in thousands) 
2014 $ 17,029
2015 14,347
2016 12,549
2017 9,100
2018 4,814
Thereafter 6,283
Total $ 
Rent expense was $20.8 million and $21.6 million for the years ended December 31, 2013 and
2012, respectively.
NOTE 15:
Goodwill
Navy Federal recognizes the net assets acquired and liabilities assumed of acquired entities at estimated
fair value as of the acquisition date, subject to refinement as information relative to the fair values at the
date of acquisition becomes available. Navy Federal recognized the excess of consideration over the fair
value of net assets acquired in its acquisition of USAFCU on October 1, 2010 as goodwill in the amount
of $43.7 million.
In accordance with ASC 350-20, Goodwill and Other, goodwill is evaluated for impairment annually
and upon any changes in circumstances that could likely result in reducing the fair value of a reporting
unit below its carrying amount. Navy Federal performed a qualitative assessment of its goodwill as of
September 30, 2013 and 2012, pursuant to ASU 2011-08, Testing Goodwill for Impairment, and concluded
that it was not likely that the fair value of any reporting unit was below its carrying amount, and therefore
did not recognize any impairment charges.