Netgear 2012 Annual Report Download - page 73

Table of Contents NETGEAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Property and equipment, net
Depreciation and amortization expense pertaining to property and equipment was $11.9 million , $9.9 million and $8.1 million for the years
ended December 31, 2012 , 2011 and 2010 , respectively.
Intangibles, net
The following tables present details of the Company’s purchased intangible assets:
In the third quarter of 2012, the Company purchased finite-lived intangible assets of $4.0 million and indefinite-lived assets of $2.0 million
, as
a result of its acquisition of AVAAK. For further discussion regarding the AVAAK acquisition, see Note 2, Business Acquisitions .
As of December 31, 2012 , the Company had $1.0 million
in unamortized intangible assets related to IPR&D. All of the IPR&D assets were
acquired in connection with the Company's acquisition of AVAAK. IPR&D assets represent IPR&D projects that have not reached technical
feasibility and are required to be classified as indefinite-
lived assets until the successful completion or abandonment of the associated research and
development efforts. Accordingly, during the development period after the date of acquisition, these assets will not be amortized. When the asset
reaches technical feasibility, the Company will determine the useful life of the asset, reclassify the asset out of IPR&D, and begin amortization.
Development costs incurred after acquisition on acquired IPR&D projects are expensed as incurred. The Company expects the remaining IPR&D
projects to be completed by the end of
69
As of
December 31,
2012
December 31,
2011
Computer equipment
$
7,290
$
7,109
Furniture, fixtures and leasehold improvements
12,761
9,757
Software
21,521
19,974
Machinery and equipment
31,694
21,797
Construction in progress
385
662
Total property and equipment, gross
73,651
59,299
Accumulated depreciation and amortization
(54,626
)
(43,415
)
Total property and equipment, net
$
19,025
$
15,884
Gross
Accumulated
Amortization
Net
December 31, 2012
Technology
$
32,259
$
(22,065
)
$
10,194
Customer contracts and relationships
16,000
(3,301
)
12,699
Other
6,870
(3,142
)
3,728
Finite-lived intangibles, net
55,129
(28,508
)
26,621
Indefinite-lived intangible assets
1,000
—
1,000
Total purchased intangible assets, net
56,129
(28,508
)
27,621
Gross
Accumulated
Amortization
Net
December 31, 2011
Technology
$
24,800
$
(19,905
)
$
4,895
Customer contracts and relationships
15,700
(1,308
)
14,392
Other
4,070
(2,401
)
1,669
Total purchased intangible assets, net
$
44,570
$
(23,614
)
$
20,956