NetSpend 2015 Annual Report Download - page 66

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The Company has various types of equipment under capital lease arrangements. The Company has the following
amounts of equipment under capital lease obligations as of December 31, 2015 and 2014:
(in thousands) 2015 2014
Computer equipment ........................................................... $ 55,450 49,118
Furniture and other equipment ................................................... 5,374 5,374
Total equipment ............................................................. 60,824 54,492
Less accumulated depreciation:
Computer and other equipment .................................................. (36,134) (29,816)
Furniture and other equipment ................................................... (2,731) (1,666)
Total accumulated depreciation ................................................ (38,865) (31,482)
Total equipment, net ......................................................... $ 21,959 23,010
Depreciation and amortization expense includes amounts for computer equipment, furniture and other
equipment acquired under capital lease. Depreciation and amortization expense related to property and
equipment was $56.6 million, $53.5 million and $45.5 million for the years ended December 31, 2015, 2014 and
2013, respectively.
Note 11 Contract Acquisition Costs, net
Significant components of contract acquisition costs as of December 31, 2015 and 2014 are summarized as
follows:
(in thousands) 2015 2014
Conversion costs, net .......................................................... $159,000 159,339
Payments for processing rights, net .............................................. 88,811 76,966
Total ...................................................................... $247,811 236,305
Amortization expense related to contract acquisition cost for the years ended December 31, 2015, 2014 and
2013 are as follows:
(in thousands) 2015 2014 2013
Amortization expense related to:
Conversion costs ................................................. $27,392 17,816 19,515
Payments for processing rights ...................................... 17,039 16,209 13,099
The weighted average useful life for each component of contract acquisition costs, and in total, as of
December 31, 2015 is as follows:
Weighted
Average
Amortization
Period (Yrs)
Payments for processing rights ......................................................... 14.7
Conversion costs ..................................................................... 12.3
Total ............................................................................. 13.3
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