Classmates.com 2004 Annual Report Download - page 94

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Amortization 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 $20.4 million, $7.9 million, $16.4 million and $14.2 million, respectively.
Estimated future amortization expense at December 31, 2004 is as follows (in thousands):
In January 2005, the Company purchased an intangible asset for $6.0 million. The amount will be amortized over the expected useful life of
the asset, which has yet to be determined.
Accrued Liabilities
Accrued liabilities consist of the following (in thousands):
Line of Credit
In December 2003, United Online obtained a one-year $25 million unsecured revolving line of credit from a bank that was to expire in
December 2004. This facility was available for general corporate purposes and the interest rates on borrowings were based on current market
rates. The line of credit contained covenants pertaining to the maintenance of a minimum quick ratio, minimum cash balances with the lender
and minimum profitability levels. The line of credit provided additional working capital to support the Company's growth and overall business
strategy.
In November 2004, the Company borrowed $10.3 million from the line of credit and repaid the amount on the same business day. No
interest expense was incurred related to the borrowing. The line of credit was canceled in December 2004 in connection with the signing of the
term loan agreement under which the Company borrowed $100 million.
F-25
Software and technology
3,750
(1,870
)
1,880
Trademarks and trade names
2,806
(1,152
)
1,654
Patents, trademarks and other
1,833
(1,390
)
443
Total
$
69,589
$
(38,862
)
$
30,727
Year Ending
December 31,
2005
$
20,169
2006
14,040
2007
8,525
2008
5,511
2009
4,694
Thereafter
17,619
Total
$
70,558
December 31,
2004
2003
Employee compensation and related expenses
$
11,564
$
8,205
Settlement costs
4,281
4,281
Other
2,475
1,542
Total
$
18,320
$
14,028