Property and Equipment, Net

12 Months Ended

Dec. 31, 2012

10. Property and Equipment, Net

Property and equipment consisted of the following:

	December 31,

(in thousands)	2011			2012
Lab equipment	$	11,757		$	12,616
IT equipment		2,204			2,346
Leasehold improvements		7,698			8,200
Furniture and fixtures		329			330
Construction in process		348			1,774

		22,336			25,266
Less: Accumulated depreciation and amortization		(16,130	)		(18,969	)

	$	6,206		$	6,297

Depreciation expense was $4,059,000, $5,006,000 and $3,510,000 for the years ended December 31, 2010, 2011 and 2012, respectively.

During 2010, the Company sold fully depreciated fixed assets of $26,000, resulting in a gain on disposal. No fixed assets were disposed of or sold during 2011. During 2012, the Company disposed of $671,000 of fully depreciated assets.

In August 2004, the Company entered into an equipment financing agreement with a leasing company. The agreement involved the sale of some of the Company's fixed assets to and the leasing of those assets back from the leasing company. The Company's option to draw further on this lease facility expired during 2008. Property and equipment under capital leases as of December 31, 2011 and 2012 was $4,114,000 and $0, respectively. For the years ended December 31, 2010, 2011 and 2012, depreciation of property and equipment under capital lease totaled $409,000, $26,000 and $0, respectively.

There were no recognized impairment charges related to fixed assets in the years ended December 31, 2010, 2011 or 2012.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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