NetSpend 2013 Annual Report Download - page 52

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The Company allocated approximately $78.7 million
to acquisition technology intangibles during 2013
due to the acquisition of NetSpend. Refer to Note 23
for more information on this acquisition.
Amortization expense related to licensed computer
software costs was $36.9 million, $37.4 million and
$37.1 million for the years ended December 31,
2013, 2012 and 2011, respectively. Amortization
expense includes amounts for computer software
acquired under capital lease. Amortization of
software development costs was $21.6 million,
$23.3 million and $24.4 million for the years ended
December 31, 2013, 2012 and 2011, respectively.
Amortization expense related to acquisition
technology intangibles was $15.9 million, $9.7 million
and $10.3 million for the years ended December 31,
2013, 2012 and 2011, respectively.
The weighted average useful life for each component
of computer software, and in total, as of December 31,
2013, is as follows:
Weighted
Average
Amortization
Period (Yrs)
Licensed computer software ......... 5.7
Software development costs ........ 5.8
Acquisition technology intangibles . . . 6.8
Total ............................ 5.9
Estimated future amortization expense of licensed
computer software, software development costs and
acquisition technology intangibles as of
December 31, 2013 for the next five years is:
(in thousands)
Licensed
Computer
Software
Software
Development
Costs
Acquisition
Technology
Intangibles
2014 ...... $48,293 26,396 19,715
2015 ...... 38,847 20,532 16,670
2016 ...... 27,964 15,925 15,202
2017 ...... 20,312 11,198 13,718
2018 ...... 12,805 7,994 11,243
NOTE 9 Property and Equipment, net
Property and equipment balances as of December 31
are as follows:
(in thousands) 2013 2012
Computer and other
equipment .............. $274,987 247,506
Buildings and
improvements ........... 242,132 232,141
Furniture and other
equipment .............. 131,036 125,100
Land ..................... 17,021 16,920
Other ..................... 988 2,955
Total property and
equipment .............. 666,164 624,622
Less accumulated
depreciation and
amortization ............. 400,948 364,233
Property and equipment,
net ..................... $265,216 260,389
Depreciation and amortization expense related to
property and equipment was $48.2 million, $46.3
million and $49.3 million for the years ended
December 31, 2013, 2012 and 2011, respectively.
Note 10 Contract Acquisition Costs, net
Significant components of contract acquisition costs
as of December 31 are summarized as follows:
(in thousands) 2013 2012
Conversion costs, net ....... $112,239 85,402
Payments for processing
rights, net ............... 72,651 75,865
Total ................... $184,890 161,267
Amortization expense related to conversion costs was
$19.6 million, $24.1 million and $18.8 million for the
years ended December 31, 2013, 2012 and 2011,
respectively.
Amortization related to payments for processing
rights, which is recorded as a reduction of revenues,
was $13.1 million, $13.3 million and $15.9 million for
the years ended December 31, 2013, 2012 and 2011,
respectively.
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