Hypercom Corporation Annual Report - CiteSeer

The Company’s cash and cash equivalents were measured at fair value consist of the following at December 31, 2009 (dollars
in thousands):
Level 1 Level 2 Level 3 Total
Money market funds $ 19,208 $ — $ — $ 19,208
Cash 35,833 — — 35,833
$ 55,041 $ — $ — $ 55,041
9. Short-term Investments
The Company’s short-term investments consist entirely of U.S. government and agency debt securities and are classified as
available-for-sale and recorded at fair value. As of December 31, 2009 and 2008, amortized cost of the Company’s short-term
investments equaled fair value. Accordingly, there were no unrealized gains and losses as of December 31, 2009 and 2008.
10. Inventories
Inventories consist of the following at December 31, 2009 and 2008 (dollars in thousands):
2009 2008
Purchased parts $ 8,850 $ 4,039
Work in progress 292 353
Finished goods 20,221 26,898
$ 29,363 $ 31,290
11. Property, Plant and Equipment, net
Property, plant and equipment consist of the following at December 31, 2009 and 2008 (dollars in thousands):
2009 2008
Computer equipment and software $ 39,349 $ 31,738
Machinery and equipment 33,941 33,241
Equipment leased to customers 271 2,872
Furniture and fixtures 4,752 5,683
Leasehold improvements 6,421 5,506
Construction in process 830 4,081
85,564 83,121
Less accumulated depreciation (61,260 ) (58,210 )
$ 24,304 $ 24,911
Depreciation expense from continuing operations, which includes depreciation for assets under capital lease, was $9.4 million,
$8.8 million and $6.9 million for the years ended December 31, 2009, 2008 and 2007, respectively.
Accumulated depreciation for equipment leased to customers amounted to $0.1 million and $1.1 million for the years ended
December 31, 2009 and 2008, respectively.
In 2009, the Company began soliciting buyers for its Brazilian building and will seek to lease facilities at a new site in Brazil
during 2010. The net book value of the building at December 31, 2009 and 2008 was $1.9 million and $2.0 million, respectively. The
net book value is classified as current portion of assets held for sale as of December 31, 2009 and as assets held for sale as of
December 31, 2008. The net book value is included in total assets of the Americas in the segment and geographic information as
disclosed in Note 22.
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