Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment, Net

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Property and Equipment, Net
6 Months Ended
Jun. 30, 2012
Property and Equipment, Net [Abstract]  
Property and Equipment, Net

Note 4 – Property and Equipment, Net

The Company’s fixed assets consisted of computer software (purchased and internally developed), machinery and equipment, furniture and fixtures, and vehicles, and are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are provided for in amounts sufficient to relate the cost of depreciable and amortizable assets to operations over their estimated service lives. Depreciation expense for the thirteen weeks ended June 30, 2012 and July 2, 2011 was $4.0 million and $3.1 million, respectively. Depreciation expense for the twenty-six weeks ended June 30, 2012 and July 2, 2011 was $7.7 million and $6.1 million, respectively. The cost and related accumulated depreciation of assets retired or otherwise disposed of are removed from the accounts and the resultant gain or loss is reflected in earnings.

 

Property and equipment consisted of the following at June 30, 2012 and December 31, 2011 (in thousands):

 

                 
    June 30, 2012     December 31, 2011  
    (unaudited)        

Land

  $ 630     $ 630  

Building

    10,680       10,680  

Machinery and equipment

    13,946       13,429  

Computer software (purchased and developed) and equipment

    41,954       37,880  

Vehicles

    249       221  

Leasehold improvements

    2,428       2,122  

Furniture and fixtures

    1,359       1,244  

Construction in process

    3,460       2,467  
   

 

 

   

 

 

 
     
      74,706       68,673  

Less accumulated depreciation and amortization

    (41,834 )     (34,046 )
   

 

 

   

 

 

 
     

Property and equipment, net

  $ 32,872     $ 34,627  
   

 

 

   

 

 

 

Certain of the Company’s net property and equipment was located in the Philippines as of June 30, 2012 and December 31, 2011, in the amount of $1.3 million and $1.6 million, respectively.

Depreciation of property and equipment is provided using the straight-line method for financial reporting purposes, based on the following estimated useful lives:

 

         
    Years  

Building

    21  

Machinery and equipment

    2 - 5  

Computer software (purchased and developed)

    2 - 5  

Computer equipment

    2 - 5  

Vehicles

    3 - 5  

Leasehold improvements*

    3 - 5  

Furniture and fixtures

    3 - 7  
   
*  The estimated useful life is the lesser of 3-5 years or the lease term.