Shutterfly 2011 Annual Report Download - page 60

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Property and Equipment
Property and equipment includes $35,000 and $1,212,000 of equipment under capital leases at December 31, 2010 and 2009, respectively.
Accumulated depreciation of assets under capital leases totaled $31,000 and $1,199,000 at December 31, 2010 and 2009, respectively.
Depreciation and amortization expense for the years ended December 31, 2010, 2009 and 2008 was $23,429,000, $25,122,000 and
$24,211,000, respectively.
Total capitalized software and website development costs, net of accumulated amortization totaled $11,588,000 and $8,629,000 at
December 31, 2010 and 2009, respectively. These amounts included $1,846,000 and $1,571,000 of stock based compensation expense at
December 31, 2010 and 2009, respectively. Amortization of capitalized costs totaled approximately $4,207,000, $3,314,000 and $2,456,000 for
the years ended December 31, 2010, 2009 and 2008, respectively.
Intangible Assets
Intangible assets are comprised of the following at December 31:
Purchased technology is amortized over a period ranging from two to sixteen years. Customer relationships are amortized over a period
ranging from one to three years. Licenses and other is amortized over a period ranging from two to five years.
Intangible asset amortization expense for the years ended December 31, 2010, 2009 and 2008 was $1,849,000, $1,838,000 and $1,827,000,
respectively. Amortization of existing intangible assets is estimated to be as follows (in thousands):
Table of Contents
December 31,
2010
2009
In thousands
Computer and other equipment
$
87,531
$
84,754
Software
9,124
7,122
Leasehold improvements
7,133
6,848
Furniture and fixtures
3,006
2,956
Capitalized software and website development costs
25,173
17,494
131,967
119,174
Less: Accumulated depreciation and amortization
(92,241
)
(77,329
)
Net property and equipment
$
39,726
$
41,845
Weighted Average
Useful Life
December 31,
2010
2009
In thousands
Purchased technology
7 Years
$
9,878
$
8,578
Less: accumulated amortization
(5,228
)
(3,734
)
4,650
4,844
Customer relationships
3 Years
1,935
1,015
Less: accumulated amortization
(1,065
)
(777
)
870
238
Licenses and other
3 Years
416
256
Less: accumulated amortization
(264
)
(200
)
152
56
Total
$
5,672
$
5,138
Year Ending:
2011
$
2,104
2012
1,951
2013
644
2014
388
2015
345
Thereafter
240
$
5,672
51