Property and Equipment

9 Months Ended

Oct. 01, 2011

Property and Equipment

Property and Equipment

4.   Property and Equipment

Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets for financial statement purposes and accelerated methods for income tax purposes. The balances of our Property and equipment as of October 1, 2011 and January 2, 2011 and the estimated useful lives used in the financial statements are as follows:

(In thousands)	October 1, 2011			January 1, 2011			Useful lives (in years)
Leasehold improvements	$	237		$	269		Shorter of useful life or lease term
Office furniture & equipment	1,772			1,656			5 - 10
Computer hardware	1,482			1,793			2 - 5
Software	4,575			5,356			2 - 5
Work in process	797			—
	8,863			9,074
Accumulated depreciation	(7,369		)	(8,290		)
Property and equipment, net	$	1,494		$	784

In the third quarter of fiscal 2011, the Company commenced a project to replace its current financial and human resource information systems with a fully integrated enterprise resource planning (“ERP”) solution. The project to implement the ERP solution resulted in approximately $0.8 million of costs being capitalized in the third quarter of fiscal 2011.

In the second and third quarters of fiscal 2011, the Company disposed of approximately $1.4 million of fully amortized and depreciated property and equipment. The disposed property and equipment primarily relates to decommissioned software, computer hardware and the relocation of our corporate headquarters.