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Other Assets
6 Months Ended
Jun. 30, 2011
Other Assets [Abstract]  
OTHER ASSETS
NOTE 9: OTHER ASSETS
Included in other assets are net capitalized software development costs of $54,493 and $55,575 as of June 30, 2011 and December 31, 2010, respectively. Amortization expense on capitalized software of $4,832 and $9,408 was included in product cost of sales for the three and six months ended June 30, 2011, respectively, and $3,849 and $7,930 for the three and six months ended June 30, 2010, respectively. Other long-term assets also consist of patents, trademarks and other intangible assets. Where applicable, other assets are stated at cost and, if applicable, are amortized ratably over the relevant contract period or the estimated life of the assets. Fees to renew or extend the term of the Company’s intangible assets are expensed when incurred. Impairment of long-lived assets is recognized when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the expected future undiscounted cash flows are less than the carrying amount of the asset group, an impairment loss may be recognized at that time to reduce the asset to the lower of its fair value or its net book value.
The Company recorded $2,962 and $4,096 of intangible asset impairment charges within Diebold North America (DNA) continuing operations in the second quarter of 2011 and 2010, respectively. The 2011 impairment related to a software intangible and the 2010 impairment related to customer contract intangible assets.
Investment in Affiliate Investment in the Company’s non-consolidated affiliate is accounted for under the equity method and consists of a 50 percent ownership in Shanghai Diebold King Safe Company, Ltd. The balance of this investment as of June 30, 2011 and December 31, 2010 was $12,977 and $12,118, respectively, and fluctuated based on equity earnings. Equity earnings from the non-consolidated affiliate are included in miscellaneous, net in the condensed consolidated statements of income and were $434 and $859 for the three and six months ended June 30, 2011, respectively, and $672 and $1,425 for the three and six months ended June 30, 2010, respectively.