XML 35 R11.htm IDEA: XBRL DOCUMENT

Property and Equipment

12 Months Ended

Dec. 31, 2011

Property and Equipment

Property and Equipment

5. Property and Equipment

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

		At December 31,
		2011			2010
Computers, software, machinery and equipment		$	56,217		$	47,665
Leasehold improvements		4,660			6,224
Furniture and fixtures		4,266			3,249
Building and improvements		7,119			1,725
Land		8,264			912
Software development and other equipment in progress		4,858			3,949
Subtotal		85,384			63,724
Less: Accumulated depreciation and amortization		(40,639		)	(41,873		)
Property and equipment, net		$	44,745		$	21,851

Depreciation and amortization expense for property and equipment, including fixed assets under capital leases, for the years ended December 31, 2011, 2010 and 2009 totaled $7.8 million, 6.3 million and $4.0 million.

In March 2011, we completed the purchase of the real property comprising approximately 82,000 square feet of office space located at 1940 East Mariposa Avenue, El Segundo, California, which became our new corporate headquarters. We moved into this building from our current headquarters located in Torrance, California in November 2011. The total purchase price was $9.6 million. Based on the proportionate appraised values, we allocated $7.4 million of the purchase price to land and $2.2 million to building. We made certain improvements to the property and made purchases of additional furniture and equipment totaling approximately $7.6 million as of December 31, 2011.

In June 2011, we entered into a credit agreement to finance the purchase and improvement of this real property. The credit agreement provides a commitment for a loan up to $10.9 million of which there was $7.2 million outstanding at December 31, 2011. See Note 7 below for more information. In February 2012, we drew down an additional $2.9 million on this facility. Principal repayment began in March 2012.

In February 2012 we entered into capital lease agreements with US Bank for approximately $3.0 million for various furniture and equipment at our El Segundo headquarters office. We expect to enter into approximately $1.3 million of additional capital lease agreements in the near term.

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.

+ References+ Details