Shutterfly 2010 Annual Report Download - page 71

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SHUTTERFLY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Property and Equipment
Property and equipment includes $1,212,000 and $3,356,000 of equipment and software under capital leases at December 31, 2009 and
2008, respectively. Accumulated depreciation of assets under capital leases totaled $1,199,000 and $3,010,000 at December 31, 2009 and 2008,
respectively.
Depreciation and amortization expense for the years ended December 31, 2009, 2008 and 2007 was $25,122,000, $24,211,000 and
$17,384,000, respectively.
Total capitalized software and website development costs, net of accumulated amortization totaled $8,629,000 and $7,133,000
at
December 31, 2009 and 2008, respectively. These amounts included $1,571,000 and $1,590,000 of stock based compensation expense at
December 31, 2009 and 2008 respectively. Amortization of capitalized costs totaled approximately $3,314,000, $2,456,000 and $1,467,000 for
the years ended December 31, 2009, 2008 and 2007, respectively.
During the year ended December 31, 2009, the Company retired $8,910,000 of fully depreciated property and equipment, primarily
building leasehold improvements and equipment associated with the closure of the Company's Hayward production facility.
During 2009, the Company recorded a loss of $266,000 associated with the impairment of certain computer equipment.
December 31,
2009
2008
In thousands
Computer and other equipment
$
84,754
$
78,299
Software
7,122
7,450
Leasehold improvements
6,848
8,933
Furniture and fixtures
2,956
2,609
Capitalized software and website development costs
17,494
12,622
119,174
109,913
Less: Accumulated depreciation and amortization
(77,329
)
(61,805
)
Net property and equipment
$
41,845
$
48,108
68