NetSpend 2012 Annual Report Download - page 45

The Company and TSYS de México are parties to an
agreement where TSYS de México provides
processing support to the Company. Processing
support fees paid to TSYS de México were $186,000,
$168,000 and $149,000 for the years ended
December 31, 2012, 2011 and 2010, respectively.
NOTE 5 Cash and Cash Equivalents
Cash and cash equivalent balances at December 31
are summarized as follows:
(in thousands) 2012 2011
Cash and cash equivalents
in domestic accounts .... $152,373 263,853
Cash and cash equivalents
in foreign accounts ..... 95,239 52,484
Total ................... $247,612 316,337
The Company maintains operating accounts outside
the United States denominated in currencies other
than the U.S. dollar. All amounts in domestic
accounts are denominated in U.S. dollars.
At December 31, 2012 and 2011, the Company had
$2.5 million and $22.0 million, respectively, of cash
and cash equivalents in Money Market accounts that
had an original maturity date of 90 days or less. The
Company considers cash equivalents to be short-
term, highly liquid investments that are both readily
convertible to known amounts of cash and so near
their maturity that they present insignificant risk of
changes in value because of change in interest rates.
NOTE 6 Prepaid Expenses and Other
Current Assets
Significant components of prepaid expenses and
other current assets at December 31 are summarized
as follows:
(in thousands) 2012 2011
Prepaid expenses ............. $24,615 20,917
Supplies inventory ............ 8,881 10,053
Other ....................... 36,710 41,461
Total ....................... $70,206 72,431
NOTE 7 Property and Equipment, net
Property and equipment balances at
December 31 are as follows:
(in thousands) 2012 2011
Computer and other
equipment ................. $247,506 248,592
Buildings and improvements .... 232,141 230,797
Furniture and other
equipment ................. 125,100 127,425
Land ........................ 16,920 16,794
Other ....................... 2,955 130
Total property and equipment . . 624,622 623,738
Less accumulated depreciation
and amortization ............ 364,233 357,130
Property and equipment, net . . . $260,389 266,608
Depreciation and amortization expense related to
property and equipment was $46.3 million, $49.3
million and $50.1 million for the years ended
December 31, 2012, 2011 and 2010, respectively.
NOTE 8 Computer Software, net
Computer software at December 31 is
summarized as follows:
(in thousands) 2012 2011
Licensed computer
software ................ $461,217 423,100
Software development
costs ................... 303,668 283,452
Acquisition technology
intangibles .............. 89,371 76,055
Total computer software ..... 854,256 782,607
Less accumulated
amortization:
Licensed computer
software ............... 336,521 309,571
Software development
costs ................. 232,113 208,781
Acquisition technology
intangibles ............ 58,705 49,011
Total accumulated
amortization ............. 627,339 567,363
Computer software, net ..... $226,917 215,244
The Company allocated approximately $13.0 million
to acquisition technology intangibles during 2012
due to the acquisitions of ProPay and CPAY. Refer to
Note 24 for more information on these acquisitions.
Amortization expense related to licensed computer
software costs was $37.4 million, $37.1 million and
$33.4 million for the years ended December 31,
2012, 2011 and 2010, respectively. Amortization
expense includes amounts for computer software
acquired under capital lease. Amortization of
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