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CPI Card Group Depreciation, Depletion and Amortization

: $16.0 Mil (TTM As of Sep. 2021)
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CPI Card Group's depreciation, depletion and amortization for the three months ended in Sep. 2021 was $3.6 Mil. Its depreciation, depletion and amortization for the trailing twelve months (TTM) ended in Sep. 2021 was $16.0 Mil.


CPI Card Group Depreciation, Depletion and Amortization Historical Data

The historical data trend for CPI Card Group's Depreciation, Depletion and Amortization can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

CPI Card Group Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Depreciation, Depletion and Amortization
Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.93 16.92 18.41 17.25 16.83

CPI Card Group Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Depreciation, Depletion and Amortization Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.98 4.39 4.22 3.82 3.57

CPI Card Group Depreciation, Depletion and Amortization Calculation

Depreciation is a present expense that accounts for the past cost of an asset that is now providing benefits.

Depletion and amortization are synonyms for depreciation.

Generally:
The term depreciation is used when discussing man made tangible assets
The term depletion is used when discussing natural tangible assets
The term amortization is used when discussing intangible assets

Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Sep. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $16.0 Mil.


* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


CPI Card Group  (NAS:PMTS) Depreciation, Depletion and Amortization Explanation

One of the key tenets of Generally Accepted Accounting Principles (GAAP) is the matching principle. The matching principle states that companies should report associated costs and benefits at the same time.

For example:

If a company buys a $300 million cruise ship in 1982 and then sells tickets to passengers for the next 30 years, the company should not report a $300 million expense in 1982 and then ticket sales for 1982 through 2012. Instead, the company should spread the purchase price of the ship (the cost) over the same time period it sells tickets (the benefit).

To create income statements that meet the matching principle, accountants use an expense called depreciation.

So, instead of reporting a $300 million purchase expense in 1982, the company might:

Report a $30 million depreciation expense in 1982, 1983, 1984...and every year after that for the 30 years the company expects to sell tickets to passengers on this cruise ship.

To calculate depreciation, a company must make estimates and choices such as:

The cost of the asset
The useful life of the asset
The salvage value of the asset at the end of its useful life
And a way of spreading the cost of the asset to match the time when the asset provides benefits

The range of different ways of spreading the cost under GAAP accounting is too long to list. However, public companies in the United States explain their depreciation choices to shareholders in a note to their financial statements. It is critical that investors read this note. Investors can find this note in the company's 10-K.

Past depreciation expenses accumulate on the balance sheet. Most public companies choose not to show this contra asset account on the balance sheet they present to shareholders. Instead, they simply show a single item. This single asset item may be marked Net. Such as Property, Plant, and Equipment - Net. It is actually the asset account netted against the contra asset account.

A contra asset account is an account that offsets an asset account. So, for example a company might have:

Property, Plant, and Equipment - Gross: $150 million
Accumulated Depreciation: $120 million
Property, Plant, and Equipment - Net: $30 million

In this case, the only item likely to be shown on the balance sheet is Property, Plant, and Equipment - Net. This is the cost of the company's property, plant, and equipment (asset account) minus the accumulated depreciation (the contra asset account). It means the company's assets cost $150 million, the company has reported $120 million in depreciation expense over the years, and the company is now reporting the assets have a book value of $30 million.

It is possible for a company to have fully depreciated assets on its balance sheet. This means the company's estimate of the useful life of the asset was shorter than the asset's actual useful life. As a result, the asset - although it is still being used - is carried on the balance sheet at its salvage value.

This is a reminder that depreciation involves estimates and choices. It is not an infallible process.

Companies do not have cash layout for depreciation. Therefore, depreciation is added back in the cash flow statement.

Although depreciation is not a cash cost, it is a real business cost because the company has to pay for the fixed assets when it purchases them. Both Warren Buffett and Charlie Munger hate the idea of EDITDA because depreciation is not included as an expense. Warren Buffett even jokingly said We prefer earnings before everything when criticizing the abuse of EDITDA.


Be Aware

Depreciation estimates make the calculation of net income susceptible to management's accounting choices. These choices can be either overly aggressive or overly conservative.


CPI Card Group Depreciation, Depletion and Amortization Related Terms

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CPI Card Group Business Description

CPI Card Group logo
Industry
Financial Services » Credit Services NAICS : 522220 SIC : 6153
Traded in Other Exchanges
Address
10368 West Centennial Road, Littleton, CO, USA, 80127
CPI Card Group Inc is a payment technology company engaged in providing financial payment card solutions and services. It offers credit, debit and prepaid cards. The business segments of the group are Debit and Credit, which produces Financial Payment Cards and provides integrated card services to card-issuing banks primarily in the United States, and Prepaid Debit, which provides integrated card services to Prepaid Debit Card program managers primarily in the United States. It derives key revenue from the Debit and Credit segment.
Executives
Scheirman Scott director, officer: President & CEO THE WESTERN UNION COMPANY 12500 EAST BELFORD AVENUE ENGLEWOOD CO 80112
Dubin Lane officer: SVP & GM of Pers., Ppd. & Iss. C/O CPI CARD GROUP INC. 10368 WEST CENTENNIAL RD. LITTLETON IL 80127
Kilgore Sarah officer: Chief Legal & Compliance Off. C/O CPI CARD GROUP, INC. 10026 WEST SAN JUAN WAY LITTLETON CO 80127
Lowe John Daniel officer: CFO C/O CPI CARD GROUP 10026 W. SAN JUAN WAY, SUITE 200 LITTLETON CO 80127
Dimaggio Guy officer: SVP and GM of Secure Card C/O CPI CARD GROUP INC. 10026 WEST SAN JUAN WAY LITTLETON CO 80127
Frasier Loretta G officer: Chief Human Resources Officer C/O CPI CARD GROUP INC. 10026 W. SAN JUAN WAY LITTLETON CO 80127
Williams Sarah Elizabeth officer: Chief Technology Officer C/O CPI CARD GROUP INC. 10026 W. SAN JUAN WAY LITTLETON CO 80127
Sheinbaum Marc director 24 DEERFIELD ROAD CHAPPAQUA NY 10514
Peters Nicholas A director 10368 WEST CENTENNIAL RD. LITTLETON CO 80127
Pearce Robert director 10368 WEST CENTENNIAL RD. LITTLETON CO 80127
Pearce Douglas director C/O CPI CARD GROUP INC. 10026 WEST SAN JUAN WAY LITTLETON CO 80127
Soranno Keating Valerie director C/O CPI CARD GROUP INC. 10026 WEST SAN JUAN WAY LITTLETON CO 80127
Jacoba Lisa officer: Chief Human Resources Officer 10368 WEST CENTENNIAL RD. LITTLETON CO 80127
Bohrer Jason officer: GM & SVP Secure Card C/O CPI CARD GROUP INC. 10368 WEST CENTENNIAL ROAD LITTLETON CO 80127
Tavares Silvio director 20 TIPTOE LANE BURLINGAME CA 94010

CPI Card Group Headlines

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