Classmates.com 2009 Annual Report Download - page 57

Table of Contents
General and Administrative
General and administrative expenses include personnel-related expenses for executive, finance, legal, human resources, facilities, and
internal customer support personnel. In addition, general and administrative expenses include, among other costs, professional fees for legal,
accounting and financial services; insurance; occupancy and other overhead-related costs; office relocation costs; non-income taxes; and
expenses incurred and credits received as a result of certain legal settlements or reserves.
Amortization of Intangible Assets
Amortization of intangible assets principally includes amortization of: acquired pay accounts and free accounts; certain acquired trademarks
and trade names; purchased software and technology; acquired customer and advertising contracts and related relationships; acquired patents and
domain names; and other acquired identifiable intangible assets. In accordance with the provisions set forth in ASC 350, goodwill and indefinite-
lived intangible assets are not being amortized but are tested for impairment at a reporting unit level on an annual basis and between annual tests
if an event occurs or circumstances change that would indicate the fair value of a reporting unit is below its carrying value.
Restructuring Charges
Restructuring charges consist of costs associated with the realignment and reorganization of our operations and generally include reductions
in force and closures of facilities.
Interest Income
Interest income consists of earnings on our cash, cash equivalents and short-term investments held from time to time, and interest on long-
term receivables from FTD's technology system sales.
Interest Expense
Interest expense consists of interest expense on our credit facilities, including accretion of discounts and amortization of debt issue costs,
and interest expense relating to capital leases and our interest rate cap.
Other Income (Expense), Net
Other income (expense), net, generally consists of realized gains and losses recognized in connection with the sale of short-term
investments, gains and losses on the sale of assets, equity earnings on investments in subsidiaries, and gains and losses on foreign currency
exchange rate transactions. Additionally, other income (expense), net, consists of realized and unrealized gains and losses on foreign currency
forward contracts and one-time, non-operating income and expenses.
Results of Operations
The following tables set forth for the periods presented selected historical statements of operations data. The information contained in the
tables below should be read in conjunction with Liquidity and Capital Resources, Contractual Obligations, and Critical Accounting Policies,
Estimates and Assumptions included in this Item 7 as well as the consolidated financial statements and notes thereto included elsewhere in this
Annual Report on Form 10-K. As a result of the FTD acquisition, the results of operations of FTD have been included in the consolidated
statements of operations and cash flows from August 26, 2008, the date of acquisition. Combined information for FTD for the full-year ended
December 31, 2008 is set forth below under "FTD Segment Results (Actual Results vs. Combined Results Discussion)".
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