Travelzoo 2009 Annual Report Download - page 72

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Property and equipment consisted of the following (in thousands):
2009 2008
December 31,
Computer hardware and software ................................... $2,374 $ 1,794
Office equipment and office furniture ................................ 2,229 1,637
Capitalized internal-use software and Web site development ............... 1,319 1,265
Leasehold improvements ......................................... 781 701
6,703 5,397
Less accumulated depreciation ..................................... (2,614) (1,297)
Total ........................................................ $4,089 $ 4,100
Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Estimated
useful lives are 3 to 5 years for computer hardware and software, capitalized internal-use software and Web site
development costs, and office equipment and office furniture. The Company depreciates leasehold improvements
over the term of the lease or the estimated useful life of the asset, whichever is shorter.
Depreciation expense was $1.5 million, $601,000, and $172,000 for the years ended December 31, 2009, 2008
and 2007, respectively.
As of December 31, 2009 and 2008, our capitalized internal-use software and Web site development costs, net
of accumulated amortization, were $905,000 and $1.3 million, respectively. For the years ended December 31,
2009, 2008 and 2007, we recorded amortization of capitalized internal-use software and Web site development
costs of $409,000, $6,000 and $-0-, respectively.
(f) Intangible Assets
Intangible assets consist of the following (in thousands):
2009 2008
December 31,
Acquired amortized intangible assets:
Internet domain names ............................................. $2,117 $381
Less accumulated amortization ....................................... 706 363
Total ........................................................... $1,411 $ 18
Intangible assets have a useful life of 5 years. Amortization expense was $357,000, $13,000 and $12,000 for
the years ended December 31, 2009, 2008 and 2007, respectively.
In January 2009, the Company purchased the fly.com domain name for $1.8 million.
Future amortization expense related to intangible assets at December 31, 2009 is as follows (in thousands):
Year ended December 31,
2010 ................................................................. $ 354
2011 ................................................................. 354
2012 ................................................................. 352
2013 ................................................................. 351
$1,411
The expected amortization expense is an estimate. Actual amounts of amortization expense may differ from
estimated amounts due to additional intangible asset acquisitions, impairment of intangible assets, accelerated
amortization of intangible assets and other events.
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