NetSpend 2011 Annual Report Download - page 85
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Table of Contents
NetSpend Holdings, Inc.
Notes to Consolidated Financial Statements (Continued)
December 31, 2011, 2010 and 2009
NOTE 7: INTANGIBLE ASSETS (Continued)
Amortization expense for the years ended December 31, 2011, 2010 and 2009 was $3.5 million, $3.2 million and $3.5 million,
respectively. As of December 31, 2011, estimated amortization expense for the next five years and thereafter was as follows:
NOTE 8: INVESTMENTS
During the year ended December 31, 2010, the Company purchased 150,000 shares of the common stock of Meta Financial Group
("MFG"), the holding Company of MetaBank, one of the Company's Issuing Banks, for $3.2 million. The investment in MFG is an available-
for-sale security and is included in the Consolidated Balance Sheets as a long-term investment.
As of December 31, 2011, the Company's investment in MFG is stated at fair value using its quoted price on the NASDAQ stock market.
As of December 31, 2011, the fair value of the Company's investment in MFG was $2.5 million, which is $0.7 million, or 21.9%, below its
initial purchase price. The fair value of the investment declined below its initial purchase price in October 2010 when MFG publicly disclosed
that the Office of Thrift Supervision ("OTS") was requiring MetaBank to discontinue offering certain of its products, and obtain the written
approval of the OTS prior to, among other things, entering into any new third party agency agreements concerning any credit or deposit
product (including any prepaid access product) or materially amending any of its existing agreements.
The OTS, now the Office of the Comptroller of the Currency ("OCC") issued its final report to MetaBank in July 2011. The Company has
not determined that the decline in MFG's share price is other-than-temporary. The Company has recorded the related unrealized losses in
accumulated other comprehensive losses in the Consolidated Balance Sheets and Consolidated Statement of Changes in Stockholders' Equity
and will continue to assess the investment on a quarterly basis to determine whether any changes in facts or circumstances indicate that the
decline in value of this investment is other-than-temporary in nature. If the Company determines that the impairment is no longer temporary,
the Company will realize the current unrealized losses in its Consolidated Statement of Operations.
77
(in thousands
of dollars)
2012
$
2,272
2013
1,714
2014
1,714
2015
1,684
2016
1,641
Thereafter
2,587
$
11,612