ICTG » Topics » Note 4: PROPERTY AND EQUIPMENT

These excerpts taken from the ICTG 10-K filed Mar 16, 2009.

Property and Equipment

Property and equipment are recorded at cost. Depreciation and amortization are provided over the estimated useful lives of the applicable assets using the straight-line method. The lives used are as follows:

 

Communications and computer equipment

   3-7 years

Furniture and fixtures

   5-7 years

Leasehold improvements

   Lesser of lease term or useful life

Depreciation and amortization expense relating to property and equipment was $25.6 million, $25.9 million and $23.3 million for the years ended December 31, 2008, 2007 and 2006, respectively. Repairs and maintenance are charged to expense as incurred. Additions and betterments are capitalized and amortized over their estimated useful lives. Improvements made to our leased facilities are amortized into expense over the remaining lease term.

Under the provisions of Statement of Position 98-1, “Accounting for Costs of Computer Software Developed or Obtained for Internal Use,” we capitalize the costs associated with software developed or obtained for internal use when both the preliminary project stage is completed and Management has authorized funding for the project, and it is probable that the project will be completed and used to perform the function intended. Capitalized costs include only (i) external direct costs of materials and services consumed in developing or obtaining internal-use software, (ii) direct payroll and payroll-related costs relating to the time spent by employees on each internal-use software project, and (iii) interest costs incurred, when material, while developing internal-use software. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. We capitalized $700,000, $680,000 and $968,000 of costs during 2008, 2007 and 2006, respectively, which have been included in communications and computer equipment. These costs are amortized on a project-by-project basis over the estimated useful life, typically three years, beginning when the software is placed into operations and is ready for its intended purpose. At December 31, 2008 and 2007, there was $465,000 and $904,000, respectively, of capitalized costs associated with projects that are still in progress, and therefore are not currently being amortized.

Property and Equipment

Property and equipment are recorded at cost. Depreciation and amortization are provided over the estimated useful lives of the applicable assets using the straight-line method. The lives used are as follows:

 

Communications and computer equipment

   3-7 years

Furniture and fixtures

   5-7 years

Leasehold improvements

   Lesser of lease term or useful life

Depreciation and amortization expense relating to property and equipment was $25.6 million, $25.9 million and $23.3 million for the years ended December 31, 2008, 2007 and 2006, respectively. Repairs and maintenance are charged to expense as incurred. Additions and betterments are capitalized and amortized over their estimated useful lives. Improvements made to our leased facilities are amortized into expense over the remaining lease term.

Under the provisions of Statement of Position 98-1, “Accounting for Costs of Computer Software Developed or Obtained for Internal Use,” we capitalize the costs associated with software developed or obtained for internal use when both the preliminary project stage is completed and Management has authorized funding for the project, and it is probable that the project will be completed and used to perform the function intended. Capitalized costs include only (i) external direct costs of materials and services consumed in developing or obtaining internal-use software, (ii) direct payroll and payroll-related costs relating to the time spent by employees on each internal-use software project, and (iii) interest costs incurred, when material, while developing internal-use software. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. We capitalized $700,000, $680,000 and $968,000 of costs during 2008, 2007 and 2006, respectively, which have been included in communications and computer equipment. These costs are amortized on a project-by-project basis over the estimated useful life, typically three years, beginning when the software is placed into operations and is ready for its intended purpose. At December 31, 2008 and 2007, there was $465,000 and $904,000, respectively, of capitalized costs associated with projects that are still in progress, and therefore are not currently being amortized.

Note 4:    PROPERTY AND EQUIPMENT

Property and equipment consists of the following:

 

     December 31,  
(in thousands)    2008     2007  

Communications and computer equipment

   $ 174,712     $ 175,980  

Furniture and fixtures

     29,921       32,611  

Leasehold improvements

     46,005       42,381  
                
     250,638       250,972  

Less—Accumulated depreciation and amortization

     (192,797 )     (180,314 )
                
   $ 57,841     $ 70,658  
                

In accordance SFAS 144, we review all of our long-lived assets for impairment. Our analysis is based upon management’s estimates of future cash flow in the various jurisdictions in which we operate. During 2008 and 2007, we recorded impairment charges of $3.0 million and $1.1 million, respectively, on assets in U.S., Canada, Ireland the U.K. and Australia. For 2008, approximately $2.3 million of impairments relate to assets that are classified as being held and used by the business, however, the estimated ongoing cash flow did not support the net realizable value of these assets prior to the impairment. The remaining impairments relate to assets that are being disposed of and are associated with restructuring charges recorded in 2008 and 2007 (Note 19).

 

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Note 4:    PROPERTY AND EQUIPMENT

Property and equipment consists of the following:

 

     December 31,  
(in thousands)    2008     2007  

Communications and computer equipment

   $ 174,712     $ 175,980  

Furniture and fixtures

     29,921       32,611  

Leasehold improvements

     46,005       42,381  
                
     250,638       250,972  

Less—Accumulated depreciation and amortization

     (192,797 )     (180,314 )
                
   $ 57,841     $ 70,658  
                

In accordance SFAS 144, we review all of our long-lived assets for impairment. Our analysis is based upon management’s estimates of future cash flow in the various jurisdictions in which we operate. During 2008 and 2007, we recorded impairment charges of $3.0 million and $1.1 million, respectively, on assets in U.S., Canada, Ireland the U.K. and Australia. For 2008, approximately $2.3 million of impairments relate to assets that are classified as being held and used by the business, however, the estimated ongoing cash flow did not support the net realizable value of these assets prior to the impairment. The remaining impairments relate to assets that are being disposed of and are associated with restructuring charges recorded in 2008 and 2007 (Note 19).

 

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Note
4:    
PROPERTY AND EQUIPMENT

Property and equipment consists of the following:

 





















































































































   December 31, 
(in thousands)  2008  2007 

Communications and computer equipment

  $174,712  $175,980 

Furniture and fixtures

   29,921   32,611 

Leasehold improvements

   46,005   42,381 
         
   250,638   250,972 

Less—Accumulated depreciation and amortization

   (192,797)  (180,314)
         
  $57,841  $70,658 
         

In accordance SFAS 144, we review all of our long-lived assets for impairment. Our
analysis is based upon management’s estimates of future cash flow in the various jurisdictions in which we operate. During 2008 and 2007, we recorded impairment charges of $3.0 million and $1.1 million, respectively, on assets in U.S., Canada,
Ireland the U.K. and Australia. For 2008, approximately $2.3 million of impairments relate to assets that are classified as being held and used by the business, however, the estimated ongoing cash flow did not support the net realizable value of
these assets prior to the impairment. The remaining impairments relate to assets that are being disposed of and are associated with restructuring charges recorded in 2008 and 2007 (Note 19).

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Table of Contents


Note
4:    
PROPERTY AND EQUIPMENT

Property and equipment consists of the following:

 





















































































































   December 31, 
(in thousands)  2008  2007 

Communications and computer equipment

  $174,712  $175,980 

Furniture and fixtures

   29,921   32,611 

Leasehold improvements

   46,005   42,381 
         
   250,638   250,972 

Less—Accumulated depreciation and amortization

   (192,797)  (180,314)
         
  $57,841  $70,658 
         

In accordance SFAS 144, we review all of our long-lived assets for impairment. Our
analysis is based upon management’s estimates of future cash flow in the various jurisdictions in which we operate. During 2008 and 2007, we recorded impairment charges of $3.0 million and $1.1 million, respectively, on assets in U.S., Canada,
Ireland the U.K. and Australia. For 2008, approximately $2.3 million of impairments relate to assets that are classified as being held and used by the business, however, the estimated ongoing cash flow did not support the net realizable value of
these assets prior to the impairment. The remaining impairments relate to assets that are being disposed of and are associated with restructuring charges recorded in 2008 and 2007 (Note 19).

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These excerpts taken from the ICTG 10-K filed Mar 17, 2008.

Note 4:    PROPERTY AND EQUIPMENT

Property and equipment consists of the following:

 

     December 31,  
(in thousands)    2007     2006  

Communications and computer equipment

   $ 175,980     $ 150,818  

Furniture and fixtures

     32,611       29,964  

Leasehold improvements

     42,381       29,022  
                
     250,972       209,804  

Less—Accumulated depreciation and amortization

     (180,314 )     (148,137 )
                
   $ 70,658     $ 61,667  
                

Note 4:    PROPERTY
AND EQUIPMENT

Property and equipment consists of the following:

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   December 31, 
(in thousands)  2007  2006 

Communications and computer equipment

  $175,980  $150,818 

Furniture and fixtures

   32,611   29,964 

Leasehold improvements

   42,381   29,022 
         
   250,972   209,804 

Less—Accumulated depreciation and amortization

   (180,314)  (148,137)
         
  $70,658  $61,667 
         
This excerpt taken from the ICTG 10-K filed Mar 9, 2007.

Note 4:    PROPERTY AND EQUIPMENT

Property and equipment consists of the following:

 

     December 31,  
(in thousands)    2006     2005  

Communications and computer equipment

   $ 150,818     $ 129,519  

Furniture and fixtures

     29,964       27,205  

Leasehold improvements

     29,022       21,672  
                
     209,804       178,396  

Less—Accumulated depreciation and amortization

     (148,137 )     (121,472 )
                
   $ 61,667     $ 56,924  
                
This excerpt taken from the ICTG 10-K filed Mar 6, 2006.

Property and Equipment

Property and equipment are recorded at cost. Depreciation and amortization are provided over the estimated useful lives of the applicable assets using the straight-line method. The lives used are as follows:

 

Communications and computer equipment   3-7 years
Furniture and fixtures   5-7 years
Leasehold improvements   Lesser of lease term or useful life

 

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Depreciation and amortization expense relating to property and equipment was $20,449,000, $17,519,000 and $17,663,000 for the years ended December 31, 2005, 2004 and 2003, respectively. Repairs and maintenance are charged to expense as incurred. Additions and betterments are capitalized and amortized over their estimated useful lives. Improvements made to our leased facilities are amortized into expense over the remaining lease term.

Under the provisions of American Institute of Certified Public Accountants Statement of Position 98-1, “Accounting for Costs of Computer Software Developed or Obtained for Internal Use,” we capitalize the costs associated with software developed or obtained for internal use when both the preliminary project stage is completed and management has authorized funding for the project, and it is probable that the project will be completed and used to perform the function intended. Capitalized costs include only (i) external direct costs of materials and services consumed in developing or obtaining internal-use software, (ii) direct payroll and payroll-related costs relating to the time spent by employees on each internal-use software project, and (iii) interest costs incurred, when material, while developing internal-use software. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. We capitalized $948,000, $1,654,000 and $1,203,000 of costs during 2005, 2004 and 2003, respectively, which have been included in communications and computer equipment. These costs are amortized on a project-by-project basis over an estimated useful life, typically three years, beginning when the software is placed into operations and is ready for its intended purpose. At December 31, 2005, there was approximately $503,000 of capitalized costs associated with projects that are still in progress, and therefore are not currently being amortized.

This excerpt taken from the ICTG 10-K filed Mar 16, 2005.

Property and Equipment

 

Property and equipment are recorded at cost. Depreciation and amortization are provided over the estimated useful lives of the applicable assets using the straight-line method. The lives used are as follows:

 

Communications and computer equipment

   3-7 years

Furniture and fixtures

   5-7 years

Leasehold improvements

   Lesser of lease term or useful life

 

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Depreciation and amortization expense relating to property and equipment was $17,519,000, $17,663,000 and $15,443,000 for the years ended December 31, 2004, 2003 and 2002, respectively. Repairs and maintenance are charged to expense as incurred. Additions and betterments are capitalized and amortized over their estimated useful lives.

 

Under the provisions of American Institute of Certified Public Accountants Statement of Position 98-1, “Accounting for Costs of Computer Software Developed or Obtained for Internal Use,” we capitalize the costs associated with software developed or obtained for internal use when both the preliminary project stage is completed and management has authorized funding for the project, and it is probable that the project will be completed and used to perform the function intended. Capitalized costs include only (i) external direct costs of materials and services consumed in developing or obtaining internal-use software, (ii) direct payroll and payroll-related costs relating to the time spent by employees on each internal-use software project, and (iii) interest costs incurred, when material, while developing internal-use software. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. We capitalized $1,654,000, $1,203,000 and $1,415,000 of costs during 2004, 2003 and 2002, respectively, which have been included in communications and computer equipment. These costs are amortized on a project-by-project basis over an estimated useful life, typically three years, beginning when the software is placed into operations and is ready for its intended purpose. At December 31, 2004, there was approximately $260,000 of capitalized costs associated with projects that are still in progress, and therefore have not yet begun to be amortized.

 

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