Property and Equipment

12 Months Ended

Jul. 31, 2012

4. Property and Equipment

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


	2012			2011
Computer software and equipment .	$	69,517		$	69,690
Land .		3,000			3,000
Furniture and office equipment .		775			1,856
Leasehold improvements .		5,204			5,983

		78,496			80,529
Less accumulated depreciation		(74,220	)		(74,551	)

Total	$	4,276		$	5,978

Depreciation expense was $2.6 million, $3.3 million and $6.1 million for the years ended July 31, 2012, 2011 and 2010, respectively.

The Company owns approximately 102 acres of land in Tyngsborough, Massachusetts.

The Company is required to test the recoverability of certain long-lived assets when indicators of impairment are present. In connection with Company’s pursuit of strategic alternatives, the Company conducted an assessment for recoverability of its long-lived assets in the fourth quarter of fiscal 2012. The Company utilized the cost approach which was supplemented and supported by market research to determine fair value. This approach incorporated the use of historical costs, published trends, market supported depreciation curves and adjustments, including level of asset customization, to estimate fair value. The Company concluded that the net book value of its property and equipment exceeded its estimated fair value. As a result, the Company recorded an asset impairment charge of $0.8 million.

In conjunction with the workforce reduction and early lease termination plans initiated during fiscal 2009 and fiscal 2010, the Company recorded an asset impairment charge of $1.1 million in fiscal 2010 related to certain fixed assets. These fixed assets were no longer being utilized by the Company.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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