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52
4. Property and Equipment
Property and equipment, stated at cost, at December 31, 2008 and 2007 consisted of the following (in thousands):
2008 2007
Computers and related equipment $ 51,465 $ 49,982
Furniture and equipment 1,221 984
Capital leases 569 569
Leasehold improvements 2,962 2,663
56,217 54,198
Less: Accumulated depreciation and amortization (37,279) (30,687)
Total property and equipment, net $ 18,938 $ 23,511
Depreciation and amortization expense was $6.6 million, $6.2 million and $5.7 million for the years ended December 31, 2008,
2007 and 2006, respectively. Included in accumulated amortization for each of the years ended December 31, 2008 and 2007 is $0.6
million related to capital leases. Amortization expense related to capital leases aggregated zero, $3,000 and $38,000 for the years
ended December 31, 2008, 2007 and 2006, respectively.
5. Goodwill and Intangible Assets
Pursuant to SFAS 142, we completed the annual impairment review of our goodwill and indefinite-lived intangible assets for
the years 2008, 2007 and 2006. We concluded that the fair values of our goodwill and indefinite-life intangible assets were in excess
of their carrying values as of December 31, 2008, 2007 and 2006. Consequently, no impairment charges were recorded.
The changes in carrying amount of goodwill and other intangible assets for the year ended December 31, 2008 were as follows
(in thousands):
Balance as of
January 1, 2008 Additions
Amortization
Deductions
Foreign Exchange
Translation Balance as of
December 31, 2008
Goodwill $ 39,452 $ 34,958 $ — $ — $ (1,627) $ 72,783
Intangible assets with indefinite lives 2,384 297 — — — 2,681
Intangible assets subject to amortization 26,836 13,847 (6,094) — (479) 34,110
Total $ 68,672 $ 49,102 $ (6,094) $ - $ (2,106) $ 109,574
The changes in carrying amounts of goodwill and other intangible assets for the year ended December 31, 2007 were as follows
(in thousands):
Balance as of
January 1, 2007 Additions
Amortization
Deductions
Foreign Exchange
Translation Balance as of
December 31, 2007
Goodwill $ 30,954 $ 8,019 $ — $ — $ 479 $ 39,452
Intangible assets with indefinite lives 2,063 321 — — — 2,384
Intangible assets subject to amortization 19,337 11,187 (3,896) — 208 26,836
Total $ 52,354 $ 19,527 $ (3,896) $ - $ 687 $ 68,672
As of December 31, 2008, intangible assets subject to amortization relate primarily to the following (in thousands):
Weighted-Average
Amortization
Period
Historical
Cost
Accumulated
Amortization Net
Patents 8.5 years $ 24,282 $ 8,942 $ 15,340
Technology 5.0 years 2,986 974 2,012
Customer relationships 8.5 years 12,468 3,840 8,628
Trade name 13.7 years 9,676 1,546 8,130
Total $ 49,412 $ 15,302 $ 34,110