Long term obligations

6 Months Ended

Jun. 30, 2011

5.	Long term obligations

Total long term obligations as of June 30, 2011 and December 31, 2010 consist of the following (amounts in thousands):

	2011		2010
Vendor obligations
Capital lease obligations	$	25	$	50
Deferred lease payments		323		282
Microsoft license (1)		1,036		-

Pension obligations
Accrued pension liability		1,917		1,730
		3,301		2,062
Less: Current portion of long term obligations		658		458
Total	$	2,643	$	1,604

(1) In April 2011, the Company renewed a vendor agreement to acquire certain additional software licenses and to receive support and subsequent software upgrades on these and other currently owned software licenses through February 2014. Pursuant to this agreement, the Company is obligated to pay approximately $472,000 annually over the term of the agreement. The total cost, net of deferred interest (in thousands), was allocated to the following asset accounts in 2011:

Prepaid expenses and other current assets	$ 433
Other assets	867
Property and equipment	25
	$ 1,325

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details