Classmates.com 2010 Annual Report Download - page 146

Table of Contents
UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
13. IMPAIRMENT OF GOODWILL, INTANGIBLE ASSETS AND LONG-LIVED ASSETS (Continued)
result of the December 31, 2008 valuation, the Company recorded a $44.0 million and $17.9 million impairment charge for the trademarks and
trade names of FTD and Interflora, respectively. Additionally, the Company recorded a goodwill impairment charge of $114.0 million related to
the FTD reporting unit.
Impairment charges of goodwill, intangible assets and long-lived assets consisted of the following (in thousands):
14. COMMITMENTS AND CONTINGENCIES
Leases
Future minimum lease payments at December 31, 2010 under noncancelable operating leases with initial lease terms in excess of one year
were as follows (in thousands):
Operating leases consist primarily of facility leases. The Company leases its facilities and certain operating equipment under operating
leases expiring at various periods through 2014. Certain of the Company's operating leases include rent holidays as well as escalation clauses
that periodically adjust rent expense. The Company records rent expense on a straight-line basis over the lease term. Rent expense under
operating leases for the years ended December 31, 2010, 2009 and 2008 was $16.7 million, $11.1 million and $8.6 million, respectively.
In December 2010, the Company's MyPoints subsidiary entered into a sublease agreement with Blackrock, Inc., a related party, and
Blackrock Realty Advisors, Inc., whereby MyPoints will rent approximately 18,000 square feet of office space in San Francisco, California. In
connection with the sublease agreement, United Online, Inc. entered into a parent guaranty of all obligations under the sublease. The term of the
sublease will expire in 2014.
Letters of Credit
Letters of credit are maintained pursuant to certain of the Company's lease arrangements. The letters of credit remain in effect, generally, at
declining levels through the terms of the related leases. In addition, standby letters of credit are maintained by FTD to secure credit card
processing activity. Certificates of deposit of $0.5 million and $1.1 million maintained by the Company in connection with certain of these
letters of credit are included in other current assets and other assets in the
F-40
Year Ended
December 31, 2008
Goodwill at FTD segment
$
114,000
Intangible assets at FTD segment
61,867
Long
-
lived assets at Communications segment
283
Total impairment of goodwill, intangible
assets and long
-
lived assets
$
176,150
Year Ending December 31,
Total
2011
2012
2013
2014
2015
Thereafter
Operating leases
$
41,533
$
12,636
$
8,306
$
7,373
$
5,953
$
2,205
$
5,060