Balance Sheet Detail

12 Months Ended

Dec. 31, 2011

Balance Sheet Detail

Balance Sheet Detail

Note 6—Balance Sheet Detail

Prepaid expenses and other

        The following is a summary of prepaid expenses and other assets (in thousands):

	December 31
	2011		2010
Prepaid commission	$	7,471	$	5,729
Prepaid royalty		1,121		803
Prepaid contract expense		8,858		6,043
Tenant improvement allowance		—		182
Other		6,210		5,107
Total prepaid expenses and other	$	23,660	$	17,864

Property and equipment, net

        The following is a summary of property and equipment (in thousands):

	December 31
	2011			2010
Computer equipment—hardware	$	27,359		$	23,726
Computer equipment—software		25,092			23,783
Leasehold improvements		34,371			31,678
Furniture and fixtures		9,001			7,866
Construction in process		1,631			1,316
Property and equipment, gross	$	97,454		$	88,369
Accumulated depreciation		(55,153	)		(46,845	)
Property and equipment, net	$	42,301		$	41,524

        Depreciation expense was $11.0 million, $10.0 million and $9.4 million for fiscal 2011, 2010 and 2009, respectively. Costs of $1.3 million, $0.7 million and $2.0 million related to the development of internal use software were capitalized in 2011, 2010 and 2009, respectively, and are included in "computer equipment-software" in the table above.

Goodwill

        The changes in the carrying value of goodwill for fiscal 2011 and 2010 were as follows (in thousands):

	Goodwill
Balance at December 31, 2009	$	144,827
Additions		3,175
Translation adjustments		(2,422	)
Balance at December 31, 2010	$	145,580
Additions		60,206
Translation adjustments		(1,165	)
Balance at December 31, 2011	$	204,621

        During 2011, the US dollar weakened against the Pound Sterling, Euro and other European currencies in the first six months of the year and strengthened against these currencies during the last six months of 2011. Foreign currency translation adjustments totaling $1.2 million reflect the overall general strengthening of the US dollar versus the Danish Krone (DKK), the Euro (EUR), Norwegian Krone (NOK) and the Swedish Krona (SEK) during fiscal 2011.

        Foreign currency translation adjustments totaling $2.4 million reflect the general strengthening of the US dollar versus the Danish Krone (DKK), the Euro (EUR) and Pound Sterling (GBP) during fiscal 2010.

Other intangibles, net

        The following is a summary of intangible assets (in thousands, except weighted average amortization period):

	Weighted Average Amortization Period (Years)		Other Intangibles, Gross		Accumulated Amortization			Other Intangibles, Net
Purchased technologies		5.1	$	50,661	$	(24,777	)	$	25,884
Product development costs		3.0		16,202		(12,278	)		3,924
Developed technology sub-total				66,863		(37,055	)		29,808
Customer relationships		6.4		40,917		(24,164	)		16,753
Other intangibles		4.1		4,642		(1,682	)		2,960
Other intangibles sub-total				45,559		(25,846	)		19,713
Balance at December 31, 2011			$	112,422	$	(62,901	)	$	49,521

	Weighted Average Amortization Period (Years)		Other Intangibles, Gross		Accumulated Amortization			Other Intangibles, Net
Purchased technologies		5.0	$	28,118	$	(18,730	)	$	9,388
Product development costs		3.0		13,714		(9,477	)		4,237
Developed technology sub-total				41,832		(28,207	)		13,625
Customer relationships		6.0		27,589		(22,006	)		5,583
Other intangibles		4.0		1,585		(1,021	)		564
Other intangibles sub-total				29,174		(23,027	)		6,147
Balance at December 31, 2010			$	71,006	$	(51,234	)	$	19,772

        The changes in the carrying value of intangible assets for fiscal 2011 and 2010 were as follows (in thousands):

	Gross			Accumulated Amortization			Net
Balance at December 31, 2009	$	66,569		$	(43,604	)	$	22,965
Additions		4,369			—			4,369
Stock-based compensation additions		102			—			102
Amortization		—			(7,646	)		(7,646	)
Translation adjustments		(34	)		16			(18	)
Balance at December 31, 2010	$	71,006		$	(51,234	)	$	19,772
Additions		41,736			—			41,736
Stock-based compensation additions		131			—			131
Amortization		—			(11,627	)		(11,627	)
Translation adjustments		(451	)		(40	)		(491	)
Balance at December 31, 2011	$	112,422		$	(62,901	)	$	49,521

        Additions to intangible assets of $41.7 million in 2011 include additions of $12.0 million and $27.4 million from the acquisitions of Syncova and Black Diamond, respectively, and capitalized product development costs of approximately $2.5 million.

        Additions to intangible assets of $4.4 million in 2010 include intangible asset additions of $2.2 million from the acquisition of Goya AS and capitalized product development costs of approximately $2.2 million.

        The following is a summary of amortization of the Company's developed technology and other intangible assets for the periods presented (in thousands):

	Fiscal Years
	2011		2010		2009
Developed technology:
Amortization—purchased technologies	$	6,019	$	3,325	$	3,128
Amortization—product development costs		2,801		3,049		2,490
Amortization of developed technology		8,820		6,374		5,618
Other intangibles:
Amortization—customer relationships		2,146		970		1,336
Amortization—other intangibles		661		302		330
Amortization of other intangibles		2,807		1,272		1,666
Total amortization	$	11,627	$	7,646	$	7,284

        Based on the carrying amount of intangible assets as of December 31, 2011, the estimated future amortization is as follows (in thousands):

	Fiscal Years
	2012		2013		2014		2015		2016		Thereafter		Total
Estimated future amortization of:
Developed technology	$	9,828	$	8,027	$	4,936	$	4,317	$	2,513	$	187	$	29,808
Other intangibles		3,818		3,772		3,380		3,226		2,694		2,823		19,713
Total	$	13,646	$	11,799	$	8,316	$	7,543	$	5,207	$	3,010	$	49,521

Other assets

        The following is a summary of other assets (in thousands):

	December 31
	2011		2010
Long-term investments	$	—	$	500
Long-term prepaid commissions		5,587		3,756
Deposits		2,697		2,889
Prepaid contract expense, long-term		7,643		4,914
Total other assets	$	15,927	$	12,059

        Long-term investments include an equity investment in a privately held company. This equity investment is carried at the lower of cost or fair value at December 31, 2011 and 2010. During the third quarter of 2011, the Company wrote off its remaining investment in the privately held company and recorded an impairment loss of $0.5 million, which is reflected in "gain (loss) on equity investments, net" on the consolidated statement of operations for fiscal 2011. Deposits include restricted cash balance of $1.4 million at each of December 31, 2011 and 2010 related to the Company's San Francisco headquarters, and facilities in Boston and New York. See Note 10, "Commitment and Contingencies", for further discussion.

Accrued liabilities

        The following is a summary of accrued liabilities (in thousands):

	December 31
	2011		2010
Salaries and benefits payable	$	26,299	$	22,236
Accrued restructuring, current portion		1,050		809
Other		12,680		11,035
Total accrued liabilities	$	40,029	$	34,080

Other long-term liabilities

        The following is a summary of other long-term liabilities (in thousands):

	December 31
	2011		2010
Deferred rent	$	10,631	$	11,123
Accrued restructuring, long-term portion		—		531
Long-term deferred tax liability		2,930		534
Other		3,383		2,656
Total other long-term liabilities	$	16,944	$	14,844

        The components of accumulated other comprehensive income, net of related taxes, were as follows (in thousands):

	December 31
	2011			2010
Accumulated net unrealized gain (loss) on marketable securities	$	(13	)	$	7
Accumulated foreign currency translation adjustments		6,883			8,608
Accumulated other comprehensive income, net of taxes	$	6,870		$	8,615