TeleNav 2010 Annual Report Download - page 98

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TELENAV, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
9. Segment information
Operating segments are defined as components of an enterprise about which separate financial information
is available that is evaluated regularly by the chief operating decision maker, or decision making group, in
deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our chief
executive officer. Our chief executive officer reviews financial information presented on a consolidated basis,
accompanied by information about revenue by geographic region for purposes of allocating resources and
evaluating financial performance. We have one business activity, the provision of LBS, and there are no segment
managers who are held accountable for operations, operating results and plans for levels or components below
the consolidated unit level. Accordingly, we operate in a single reporting segment and operating unit structure.
Revenue by geographic region is based on the billing address of our wireless carrier partners. The following
table sets forth revenue and property and equipment by geographic region (in thousands):
Fiscal Year Ended June 30,
2010 2009 2008
Revenue
United States ..................................................... $166,223 $106,902 $46,582
International ...................................................... 4,939 3,978 1,483
Total revenue ................................................. $171,162 $110,880 $48,065
Property and equipment
United States ..................................................... $ 7,735 $ 5,702 $ 2,135
International ...................................................... 1,902 913 722
Total property and equipment, net ................................ $ 9,637 $ 6,615 $ 2,857
10. Related party transactions
In February 2005, we granted a long-term and noninterest-bearing loan of $200,000 to the general manager
of our China operations. The balance of the loan was $110,000 and $140,000 as of June 30, 2010 and 2009,
respectively. The loan is secured by the employee’s personal residence in China, as well as certain of the
employee’s shares of our common stock. The loan is due on January 31, 2011, or upon the employee’s
termination of employment with us. The loan is repayable through a bonus to the employee of $30,000 per year
starting in the 2007 calendar year, contingent upon the employee’s continued employment with us.
11. Employee savings and retirement plan
We sponsor a defined contribution plan under Internal Revenue Code Section 401(k), or the 401(k) Plan.
Most of our U.S. employees are eligible to participate following the start of their employment, at the beginning
of each calendar month. Employees may contribute up to the lesser of 100% of their current compensation to the
401(k) Plan or an amount up to a statutorily prescribed annual limit. We pay the direct expenses of the 401(k)
Plan and beginning in July 2006, we began to match employee contributions up to 4% of an employee’s salary.
Contributions made by us are subject to certain vesting provisions. We made matching contributions and
recorded expense of $1.0 million, $720,000 and $390,000 for fiscal 2010, 2009 and 2008, respectively.
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