NetSpend 2014 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2014 NetSpend annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 95

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95

Note 9 Computer Software, net
Computer software as of December 31, 2014 and 2013 is summarized as follows:
(in thousands) 2014 2013
Licensed computer software .................................................... $435,701 393,947
Software development costs .................................................... 376,026 337,993
Acquisition technology intangibles ............................................... 167,687 168,336
Total computer software ....................................................... 979,414 900,276
Less accumulated amortization:
Licensed computer software .................................................. 243,866 207,496
Software development costs .................................................. 275,512 254,046
Acquisition technology intangibles ............................................. 93,888 74,854
Total accumulated amortization ................................................. 613,266 536,396
Computer software, net ........................................................ $366,148 363,880
The Company allocated approximately $78.7 million to acquisition technology intangibles during 2013 due to the
acquisition of NetSpend. Refer to Note 24 for more information on this acquisition.
Amortization expense includes amounts for computer software acquired under capital lease. The Company had
the following amortization expense related to computer software for the years ended December 31, 2014, 2013
and 2012:
(in thousands) 2014 2013 2012
Amortization expense related to:
Licensed computer software costs ................................... $36,775 33,511 33,393
Software development costs ........................................ 25,248 21,430 23,044
Acquisition technology intangibles .................................. 19,683 15,855 9,712
The company held the following computer software under capital lease as of as of December 31, 2014 and 2013:
2014
(in thousands) Gross Accumulated
Amortization Net
Licensed computer software ...................................... $ 17,156 (4,816) $12,340
2013
(in thousands) Gross Accumulated
Amortization Net
Licensed computer software ........................................ $13,175 (2,031) $11,144
The weighted average useful life for each component of computer software, and in total, as of December 31,
2014, is as follows:
Weighted
Average
Amortization
Period (Yrs)
Licensed computer software ........................................................... 5.2
Software development costs ........................................................... 5.8
Acquisition technology intangibles ...................................................... 6.8
Total ............................................................................. 5.7
57