Property and Equipment

6 Months Ended

Jun. 30, 2012

Property and Equipment

Property and Equipment

3.   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 June 30, 2012 and December 31, 2011 and the estimated useful lives used in the financial statements are as follows:

(In thousands)	June 30, 2012			December 31, 2011			Useful lives (in years)
Leasehold improvements	$	304		$	247		Shorter of useful life or lease term
Office furniture & equipment	1,808			1,808			5 - 10
Computer hardware	1,616			1,569			2 - 5
Software	6,346			4,574			2 - 5
Work in process	38			1,432
	10,112			9,630
Accumulated depreciation	(7,849		)	(7,535		)
Property and equipment, net	$	2,263		$	2,095

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”) system. The project to implement the ERP system resulted in approximately $1.5 million of costs being capitalized in fiscal 2011. During the first six months of fiscal 2012, the Company capitalized an additional $0.4 million of costs related to the ERP system.