TeleNav 2011 Annual Report Download - page 95

Table of Contents
TELENAV, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
5. Property and equipment
Property and equipment consist of the following (in thousands):
Depreciation and amortization expense was $5.7 million, $4.1 million and $1.9 million for fiscal 2011, 2010 and 2009, respectively.
6. Commitments and contingencies
Our primary facilities are located in Sunnyvale, California, and Shanghai, Beijing and Xi’an, China, and are leased under noncancelable
operating lease arrangements. Future minimum operating lease payments by fiscal year as of June 30, 2011 were as follows (in thousands):
Rent expense was $2.4 million, $2.4 million and $1.7 million for fiscal 2011, 2010 and 2009, respectively.
Purchase obligations
As of June 30, 2011, we had an aggregate of $22.4 million of future minimum noncancelable financial commitments primarily related to
license fees due to certain of our third party content providers over the next three fiscal years. The aggregate of $22.4 million of future minimum
commitments were comprised of $15.2 million due in fiscal 2012, $6.1 million due in fiscal 2013 and $1.1 million due in fiscal 2014. The above
commitment amounts exclude amounts already recorded on the Consolidated Balance Sheet.
Contingencies
From time to time, we may become involved in legal proceedings, claims and litigation arising in the ordinary course of business. When
we believe a loss or a cost of indemnification is probable and can be reasonably estimated, we accrue the estimated loss or cost of
indemnification in our consolidated financial statements. Where the outcome of these matters is not determinable, we do not make a provision in
our financial statements until the loss or cost of indemnification, if any, is probable and can be reasonably estimated or the outcome becomes
known.
91
June 30,
2011 2010
Computers and equipment
$
16,988
$
13,665
Computer software
3,040
1,749
Furniture and fixtures
713
620
Automobiles
297
193
Leasehold improvements
2,339
2,140
23,377
18,367
Less accumulated depreciation and amortization
(14,298
)
(8,730
)
Property and equipment, net
$
9,079
$
9,637
2012
$
2,456
2013
3,142
2014
4,871
2015
4,161
2016 and thereafter
18,401
Total minimum lease payments
$
33,031