NetSpend 2013 Annual Report Download - page 51

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Significant components of other intangible assets as
of December 31 are summarized as follows:
2013
(in thousands) Gross Accumulated
Amortization Net
Channel
relationships ...$318,600 (20,261) $298,339
Customer
relationships ... 167,871 (69,114) 98,757
Trade name ...... 46,561 (6,527) 40,034
Database ........ 28,000 (2,800) 25,200
Covenants-not-to-
compete ....... 14,940 (2,887) 12,053
Trade
association ..... 10,000 (3,750) 6,250
Favorable lease .. 875 (89) 786
Total ............$586,847 (105,428) $481,419
2012
(in thousands) Gross Accumulated
Amortization Net
Customer
relationships .....$167,641 (49,822) $117,819
Trade association . . . 10,000 (2,750) 7,250
Trade name ........ 2,537 (1,504) 1,033
Channel
relationships ..... 1,600 (266) 1,334
Covenants-not-to-
compete ......... 3,440 (822) 2,618
Total ..............$185,218 (55,164) $130,054
Amortization related to other intangible assets, which
is recorded in selling, general and administrative
expenses, was $50.0 million, $16.6 million and
$13.2 million for 2013, 2012 and 2011, respectively.
The weighted average useful life for each component
of other intangible assets, and in total, as of
December 31, 2013 is as follows:
Weighted
Average
Amortization
Period (Yrs)
Customer relationships ............. 8.2
Trade association .................. 10.0
Trade name ...................... 4.9
Channel relationships .............. 8.0
Database ........................ 5.0
Favorable Lease ................... 4.9
Covenants-not-to-compete ......... 5.3
Total ............................ 7.6
Estimated future amortization expense of other
intangible assets as of December 31, 2013 for the
next five years is:
(in thousands)
2014 ................................ $77,218
2015 ................................ 75,770
2016 ................................ 75,213
2017 ................................ 74,822
2018 ................................ 60,166
NOTE 8 Computer Software, net
Computer software as of December 31 is summarized
as follows:
(in thousands) 2013 2012
Licensed computer software .... $417,139 461,217
Software development costs .... 338,490 303,668
Acquisition technology
intangibles ................ 168,336 89,371
Total computer software ....... 923,965 854,256
Less accumulated amortization:
Licensed computer
software ................. 224,915 336,521
Software development
costs .................... 254,423 232,113
Acquisition technology
intangibles ............... 74,854 58,705
Total accumulated
amortization ............... 554,192 627,339
Computer software, net ........ $369,773 226,917
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