Nutrisystem 2009 Annual Report Download - page 56

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3. CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES
At December 31, 2009, cash, cash equivalents and marketable securities of continuing operations consisted of the
following:
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
(in thousands)
Cash .................................................. $32,198 $— $— $32,198
U.S. government bond fund ................................ 30,344 — 20 30,324
$62,542 $— $ 20 $62,522
At December 31, 2008, cash and cash equivalents of continuing operations consisted of the following:
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
(in thousands)
Cash .................................................. $14,828 $— $— $14,828
Money market funds ..................................... 23,481 — — 23,481
$38,309 $— $— $38,309
4. FIXED ASSETS
Fixed assets consist of the following:
December 31,
2009 2008
Furniture and fixtures ............................................. $ 3,624 $ 3,591
Computer hardware and software .................................... 32,859 27,158
Equipment ...................................................... 3,222 5,678
Leasehold improvements .......................................... 2,726 4,229
42,431 40,656
Accumulated depreciation ......................................... (21,267) (16,344)
$ 21,164 $ 24,312
Depreciation and amortization expense was $11,237, $8,098 and $5,812 in 2009, 2008 and 2007, respectively.
5. GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS
On July 1, 2008, the Company acquired certain assets of NuKitchen, a provider of premium, fresh prepared
meals designed to promote weight management and healthy living. The total purchase price of $5,717 was
allocated to identifiable intangible assets ($3,000) and goodwill ($2,717).
The Company conducted its annual impairment test of goodwill during the fourth quarter of 2009. The test
resulted in the recognition, during the fourth quarter of 2009, of a goodwill impairment charge of $2,717.
Additionally, the Company recorded impairment charges of $1,824 for identifiable intangible assets. The
Company used a combination of income and market based approaches to estimate the fair value. The impairment
was recorded to depreciation and amortization in the accompanying consolidated statement of operations. The
impairment charge primarily resulted from management’s determination that the resources needed to grow a
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