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V
O
NA
G
EH
O
LDIN
GS CO
RP
.
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(
In thousands, except per share amounts
)
D
eprec
i
at
i
on an
d
amort
i
zat
i
on expense
D
ecem
b
er
3
1
,
20
1
0
D
ecem
b
er
3
1
,
2009
D
ecem
b
er
3
1
,
2008
Network equipment and computer hardware $20,887 $21,698 $21,64
7
S
oftware 22
,
602 19
,
418 11
,
85
8
Capital lease
s
2,
199 2
,
199 2
,
199
O
ther leasehold improvements 3,679 3,685 3,760
F
urn
i
ture 1
,
827 2
,
061 2
,
409
V
e
hi
c
l
es
1
5997
Di
sp
l
a
y
s
—
48 161
P
atents 1
,
145 1
,
319 2
,
81
5
52
,
3
5
4
5
0
,
43
7
44
,
946
Property and equipment impairments 584 1,886 1,762
S
oftware im
p
airments
13
5
1
,
068 1
,
904
Depreciation and amortization expense $53,073 $53,391 $48,61
2
A
mount
i
nc
l
u
d
e
di
n
i
nterest expens
e
D
ecem
b
er
3
1
,
20
1
0
D
ecem
b
er
3
1
,
2009
D
ecem
b
er
3
1
,
2008
D
ebt related costs amortization $1
,
402 $2
,
708 $3
,
237
Amount included in other income
(
expense
)
, net
D
ecem
b
er
3
1
,
20
1
0
D
ecem
b
er
3
1
,
2009
D
ecem
b
er
3
1
,
2008
Net gains (losses) resulting from foreign exchange transactions $(19) $46 $(315
)
Note 5.
I
n
co
m
e
T
a
x
es
T
he following table summarizes deferred taxes resulting from differences between financial accounting basis and ta
x
bas
i
so
f
asse
t
sa
n
d
li
ab
iliti
es.
20
1
0 2009
C
urrent assets and liabilities:
De
f
erred revenue
$
17
,
150 $ 21
,
45
0
A
ccounts rece
i
va
bl
ean
di
nventor
y
a
ll
owance
s
489 688
A
ccrue
d
expenses 4
,
583 5
,
218
D
e
b
tor
i
g
i
na
li
ssue
di
scoun
t
— (2,098
)
D
e
b
tre
l
ate
d
cost
s
—1
,
65
6
22
,
222 26
,
914
V
a
l
ua
ti
o
n
a
ll
o
w
a
n
ce
(
22,222
)(
26,914
)
Net current de
f
erred tax asse
t
$
—
$
—
N
on-current assets an
dli
a
bili
t
i
es
:
De
p
reciation and amortizatio
n
$(
8,332
)$
2,089
A
ccrued ex
p
enses
4
,7
89
5,5
67
Research and develo
p
ment tax credit
519 469
S
tock o
p
tion com
p
ensatio
n
22
,
1
5
319
,
820
C
a
p
ital lease
s
(
1,878
)(
1,275
)
D
e
f
e
rr
ed
r
e
v
e
n
ue
—
3
,
1
7
3
Debt ori
g
inal issue discoun
t
(
426
)(
6,934
)
D
eb
tr
e
l
a
t
ed cos
t
s
—
6
,
014
N
et operatin
g
loss carryforwar
d
3
7
6
,
8
5
6 330
,
104
393
,
681 3
5
9
,
027
V
a
l
uat
i
on a
ll
owance
(
393,681) (359,027
)
N
et non-current de
f
erred tax asse
t
$
—
$
—
F-16
VO
NA
G
E ANN
U
AL REP
O
RT 2010