Property And Equipment

12 Months Ended

Dec. 31, 2011

8) Property and Equipment

Property and equipment consisted of the following (in thousands):


	December 31,
	2011			2010

Land and land improvements	$	1,096		$	1,096
Building and building improvements		2,816			2,816
Manufacturing equipment		5,497			5,469
Development fixtures and equipment		697			760
Data equipment and furniture		7,079			6,611
Leasehold improvements		1,213			1,247
		18,398			17,999
Less accumulated depreciation and amortization		(12,221	)		(10,471	)
	$	6,177		$	7,528

Depreciation and amortization expense associated with property and equipment was $2,313,000, $2,018,000 and $1,250,000 for the years ended December 31, 2011, 2010 and 2009, respectively.

Data equipment and furniture as of December 31, 2011 and 2010 includes approximately $1.0 million of internally developed software costs capitalized during 2010 in connection with projects to further develop the Company's enterprise resource planning system, including implementation of an enhanced sales order processing system and development of expanded reporting capabilities. Accumulated depreciation and amortization as of December 31, 2011 includes approximately $0.5 million of amortization expense associated with such internally developed software costs, based on a three-year amortization period. Included in manufacturing equipment as of December 31, 2011 and 2010 is $2.4 million of production tooling capitalized by the Company in late 2009 in conjunction with a development and manufacturing arrangement. The Company began depreciation of the production tooling over a three-year period upon commencement of production in the first quarter of 2010.

- 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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