Enom 2011 Annual Report Download - page 97

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not anticipate a material impact to the consolidated financial statements upon adoption in 2012.
In June 2011, the FASB issued Accounting Standards Update 2011-05, “Presentation of Comprehensive Income” (“ASU 2011-05”). This guidance
requires companies to present the components of comprehensive income either in a single continuous statement of comprehensive income or in two separate
but consecutive statements. Under either method, amounts reclassified from Other Comprehensive Income ("OCI") to net income for each reporting period
must be displayed as components of both net income and OCI on the face of the financial statements. The guidance does not change the items that are
reported in OCI. ASU 2011-05 is effective for interim and annual periods beginning after December 15, 2011. Other than presentational changes, the
Company does not anticipate a significant impact to the consolidated financial statements upon adoption in 2012.
In September 2011, FASB issued amendments to its accounting guidance on testing goodwill for impairment. The amendments allow entities to use
a qualitative approach to test goodwill for impairment. This permits an entity to first perform a qualitative assessment to determine whether it is more likely
than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, it is required to perform the currently
prescribed two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. This guidance is effective for annual and
interim goodwill impairment test performed for fiscal years beginning after December 15, 2011 and early adoption is permitted. The Company did not early
adopt this guidance and does not anticipate a material impact to the consolidated financial statements upon adoption in 2012.
3. Property and Equipment
Property and equipment consisted of the following:
December 31,
2010 December 31,
2011
Computers and other related equipment $ 29,632 $ 33,680
Purchased and internally developed software 36,501 45,074
Furniture and fixtures 2,280 2,380
Leasehold improvements 2,740 3,368
71,153 84,502
Less accumulated depreciation (36,178) (51,876)
Property and equipment, net $ 34,975 $ 32,626
At December 31, 2010 and 2011, total software under capital lease and vendor financing obligations consisted of $1,633 and $1,650 with accumulated
amortization of $1,044 and $1,590, respectively. Amortization expense for assets under capital lease and vendor financing obligations for the years ended
December 31, 2009, 2010 and 2011 was $499, $545 and $547, respectively.
Depreciation and amortization expense, which includes a loss on disposal of property and equipment of approximately $305, $663 and $965 for the
years ended December 31, 2009, 2010 and 2011, respectively, by classification is shown below:
Year ended December 31,
2009 2010 2011
Service costs $ 11,882 $ 14,783 $ 16,075
Sales and marketing 184 187 423
Product development 1,434 1,346 1,466
General and administrative 1,463 1,950 2,994
Total depreciation and amortization $ 14,963 $ 18,266 $ 20,958
4. Intangible Assets
Intangible assets consist of the following:
F-18