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Table of Contents
Property and equipment, net
Depreciation and amortization expense pertaining to property and equipment in 2011, 2010 and 2009 was $9.9 million, $8.1 million and
$7.3 million, respectively.
Goodwill
Activity related to goodwill consisted of the following:
During 2011, the Company recorded $11.7 million of goodwill associated with the acquisition of the Customer Networking Solutions
division of Westell Technologies, Inc. (“Westell”). During 2010, the Company recorded $8.5 million of goodwill associated with a $10 million
earn-out payment made in connection with the Company’s 2007 acquisition of Infrant. The Company also recorded $900,000 of goodwill
associated with the Company’s 2010 acquisition of Leaf, and recorded an $84,000 reduction in goodwill related to taxes associated with the
Company’s 2006 acquisition of Skipjam Corp. Refer to Note 2, Business Acquisitions , for additional information regarding the Company’s
acquisitions.
There were no impairments to goodwill in the years ended December 31, 2011, 2010, and 2009. Refer to Note 1, The Company and
Summary of Significant Accounting Policies , for additional information regarding the Company’s goodwill impairment assessment.
76
As of December 31,
2011
2010
Computer equipment
$
7,109
$
6,057
Furniture, fixtures and leasehold improvements
9,757
9,450
Software
19,974
18,553
Machinery and equipment
21,797
17,465
Construction in progress
662
30
59,299
51,555
Less: Accumulated depreciation and amortization
(43,415
)
(34,052
)
$
15,884
$
17,503
New Segments
Old
Segment
Retail
Commercial
Service
Provider
Total
Goodwill at December 31, 2009
$
64,908
$
—
$
—
$
—
$
64,908
Additions related to earn
-
out payments
8,474
—
—
—
8,474
Net additions related to acquisitions
816
—
—
—
816
Goodwill at December 31, 2010
74,198
—
—
—
74,198
Relative fair value approach
(74,198
)
33,546
32,043
8,609
—
Goodwill at April 4, 2011
—
33,546
32,043
8,609
74,198
Net additions related to acquisitions
—
—
—
11,746
11,746
Goodwill at December 31, 2011
$
—
$
33,546
$
32,043
$
20,355
$
85,944