Classmates.com 2004 Annual Report Download - page 93

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Property and Equipment
Property and equipment consists of the following (in thousands):
Depreciation expense for the year ended December 31, 2004, the six months ended December 31, 2003 and the years ended June 30, 2003
and 2002 was $8.7 million, $3.1 million, $11.1 million and $18.3 million, respectively. Assets under capital leases are included in computer
software and equipment. At December 31, 2004, the amount capitalized and the related accumulated amortization were $1.3 million and
$0.1 million, respectively. At December 31, 2003, assets under capital leases and the related accumulated amortization were not material.
Goodwill and Intangible Assets
The changes in goodwill for the six months ended December 31, 2003 and the year ended December 31, 2004 were as follows (in
thousands):
The Company recorded a reduction in intangible assets of approximately $11.2 million during the December 2004 quarter in connection
with the release of the deferred tax valuation allowance. Intangible assets consist of the following (in thousands):
F-24
December 31,
2004
2003
Computer software and equipment
$
70,329
$
54,535
Furniture and fixtures
10,077
6,911
80,406
61,446
Less: accumulated depreciation
(53,400
)
(48,018
)
Total
$
27,006
$
13,428
Balance at June 30, 2003
$
10,940
Recognition of acquired deferred tax assets
(1,399
)
Balance at December 31, 2003
9,541
Goodwill recorded in connection with acquisitions
76,458
Recognition of acquired deferred tax assets
(9,541
)
Balance at December 31, 2004
$
76,458
December 31, 2004
Cost
Accumulated
Amortization
Net
Pay accounts and free accounts
$
98,402
$
(51,736
)
$
46,666
Trademarks and trade names
15,952
(1,879
)
14,073
Advertising contracts and related relationships
7,200
(527
)
6,673
Software and technology
4,970
(3,285
)
1,685
Patents, domain names and other
3,309
(1,848
)
1,461
Total
$
129,833
$
(59,275
)
$
70,558
December 31, 2003
Cost
Accumulated
Amortization
Net
Pay accounts and free accounts
$
61,200
$
(34,450
)
$
26,750