eTrade 2005 Annual Report Download - page 154

Table of Contents
NOTE 10—PROPERTY AND EQUIPMENT, NET
Property and equipment, net consists of the following (in thousands):
December31,
2005
2004
Software
$
353,120
$
331,774
Equipment and transportation
193,051
240,517
Leasehold improvements
93,963
88,066
Buildings
71,927
71,927
Furniture and fixtures
19,040
14,340
Land
3,428
3,428
Total property and equipment, gross
734,529
750,052
Less accumulated depreciation and amortization
(435,273
)
(447,761
)
Total property and equipment, net
$
299,256
$
302,291
Depreciation and amortization expense related to property and equipment was $75.0 million for 2005, $77.9 million for 2004 and $85.6
million for 2003.
Software includes capitalized internally developed software costs. These costs were $34.7 million for 2005, $31.8 million for 2004 and
$41.8 million for 2003. Completed projects are carried at cost and are amortized on a straight-line basis over their estimated useful lives,
generally four years. Amortization expense for the capitalized amounts was $31.5 million for 2005, $33.7 million for 2004 and $29.3 million
for 2003. Also included in software is $17.6 million of internally developed software in the process of development for which
amortization has not begun.
NOTE 11—GOODWILL AND OTHER INTANGIBLES, NET
The following table discloses the changes in the carrying value of goodwill for the periods presented (in thousands):
Balance at December31, 2003
$
392,845
Adjustments to 2002 acquisitions
(11,860
)
Adjustments to 2003 acquisitions
15,490
Other adjustments
(1,432
)
Balance at December31, 2004
395,043
Additions from 2005 acquisitions
1,612,928
Write-off related to discontinued operations
(4,515
)
Balance at December31, 2005
$
2,003,456
The following table discloses the changes in the carrying value of goodwill that occurred in the retail and institutional segments in
2005 (in thousands):

2006. EDGAR Online, Inc.