Classmates.com 2006 Annual Report Download - page 88
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Maturities of short-term investments were as follows (in thousands):
Property and Equipment
Property and equipment consists of the following (in thousands):
Depreciation expense for the years ended December 31, 2006, 2005 and 2004 was $21.3 million, $15.5 million and $8.7 million,
respectively. Assets under capital leases are included in computer software and equipment. At December 31, 2006, the amount capitalized and
the related accumulated depreciation were $0.4 million and $0.4 million, respectively. At December 31, 2005, the amount capitalized and the
related accumulated depreciation were $1.3 million and $0.7 million, respectively.
Goodwill and Intangible Assets
The changes in goodwill for the years ended December 31, 2005 and 2006 were as follows (in thousands):
The adjustment to Classmates’ goodwill is primarily due to an increase in deferred tax assets for tax benefits associated with expense
deductions and a reduction in deferred tax liabilities due to an adjustment in the state income tax rate expected to apply to future reversals of
acquired book/tax basis differences.
F- 26
December 31, 2006
December 31, 2005
Amortized
Cost
Estimated
Fair Value
Amortized
Cost
Estimated
Fair Value
Maturing within 1 year
$
24,502
$
24,499
$
39,119
$
39,091
Maturing between 1 year and 4 years
34,930
34,781
39,995
39,584
Maturing after 4 years
83,890
83,830
65,350
65,290
Total
$
143,322
$
143,110
$
144,464
$
143,965
December 31,
2006
2005
Computer software and equipment
$
106,067
$
90,357
Furniture and fixtures
15,195
11,351
121,262
101,708
Less: accumulated depreciation
(86,966
)
(68,615
)
Total
$
34,296
$
33,093
Balance at December 31, 2004
$
76,458
Adjustments to Classmates
’
goodwill
(1,697
)
Goodwill recorded in connection with the acquisition of the Company’s photo-sharing
service
5,738
Balance at December 31, 2005
80,499
Goodwill recorded in connection with The Names Database acquisition
9,092
Goodwill recorded in connection with MyPoints acquisition
49,122
Goodwill recorded in connection with Trombi acquisition
184
Impairment of goodwill related to the Company
’
s photo
-
sharing service (see Note 6)
(5,738
)
Reduction of acquired deferred tax assets
(141
)
Balance at December 31, 2006
$
133,018