NetSpend 2010 Annual Report Download - page 84

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Table of Contents
NetSpend Holdings, Inc.
Notes to Consolidated Financial Statements (Continued)
December 31, 2008, 2009 and 2010
NOTE 3: RECENT ACCOUNTING PRONOUNCEMENTS (Continued)
fair value measurement disclosures about the level of disaggregation and about inputs and valuation techniques used to measure fair value. The
additional disclosure requirements are effective for the first reporting period beginning after December 15, 2009, except for the additional
disclosure requirements related to Level 3 measurements, which are effective for fiscal years beginning after December 15, 2010. The
Company adopted these provisions effective January 1, 2010, and they did not have a material impact on the Company's disclosures.
In February 2010, the FASB issued an amendment to the guidelines on accounting for subsequent events. The amendment clarifies that an
SEC filer is required to evaluate subsequent events through the date that the financial statements are issued, but that SEC filers are not required
to disclose the date through which subsequent events have been evaluated. The amendment was effective upon issuance and did not have an
impact on the consolidated financial statements.
NOTE 4: PROPERTY AND EQUIPMENT
Property and equipment consisted of the following as of December 31, 2009 and 2010:
During 2009, the Company entered into a capital lease arrangement with a software provider for perpetual database licenses. The capital
lease arrangement resulted in the recording of $3.4 million in capitalized computer software, which is included in property and equipment on
the Company's Consolidated Balance Sheets.
Depreciation expense, which includes amortization of the capital lease, for the years ended December 31, 2008, 2009 and 2010 was
approximately $5.7 million, $6.8 million and $9.5 million, respectively.
During the years ended December 31, 2008, 2009 and 2010, the Company capitalized interest costs of $0.1 million, $0.2 million and
$0.1 million, respectively, related to developed software.
78
December 31,
2009 2010
(in thousands of dollars)
Computer and office equipment
$
14,033
$
13,983
Computer software
16,583
26,568
Furniture and fixtures
1,317
1,368
Leasehold improvements
1,609
1,625
Construction in progress
9,387
2,579
42,929
46,123
Less: accumulated depreciation
(18,488
)
(25,116
)
$
24,441
$
21,007