4. Property and Equipment and Capitalized Software Development
Property and equipment consist of the following at:
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
|
2012 |
|
2011 |
|
Student computers |
|
$ |
81,925 |
|
$ |
61,185 |
|
Computer software |
|
|
22,869 |
|
|
24,427 |
|
Computer hardware |
|
|
14,607 |
|
|
14,063 |
|
Leasehold improvements |
|
|
8,476 |
|
|
5,948 |
|
Office equipment |
|
|
3,454 |
|
|
3,314 |
|
Furniture and fixtures |
|
|
4,312 |
|
|
2,138 |
|
Web site development costs |
|
|
1,115 |
|
|
1,115 |
|
|
|
|
|
|
|
|
|
|
136,758 |
|
|
112,190 |
|
Less accumulated depreciation and amortization |
|
|
(80,855 |
) |
|
(65,565 |
) |
|
|
|
|
|
|
|
|
$ |
55,903 |
|
$ |
46,625 |
|
|
|
|
|
|
|
The Company recorded depreciation expense related to property and equipment reflected in selling, administrative and other operating expenses of $9.6 million, $4.9 million and $3.7 million during the years ended June 30, 2012, 2011 and 2010, respectively. Depreciation expense of $17.7 million, $13.9 million and $12.3 million related primarily to computers leased to students reflected in instructional costs and services was recorded during the years ended June 30, 2012, 2011 and 2010, respectively. Amortization expense of $2.0 million, $1.7 million and $0 million related to student software costs reflected in instructional costs and services was recorded by the Company during the years ended June 30, 2012, 2011 and 2010, respectively.
In the course of its normal operations, the Company incurs maintenance and repair expenses. Those are expensed as incurred and amounted to $5.6 million, $2.9 million and $1.2 million for the years ended June 30, 2012, 2011 and 2010, respectively.
Capitalized software consists of the following at:
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
|
2012 |
|
2011 |
|
Capitalized software costs |
|
$ |
64,129 |
|
$ |
42,131 |
|
Less accumulated depreciation and amortization |
|
|
(29,420 |
) |
|
(17,745 |
) |
|
|
|
|
|
|
|
|
$ |
34,709 |
|
$ |
24,386 |
|
|
|
|
|
|
|
The Company recorded amortization expense of $9.6 million, $7.0 million and $2.7 million related to capitalized software development reflected in instructional costs and services during the years ended June 30, 2012, 2011 and 2010, respectively. Amortization expense of $2.0 million, $1.3 million and $1.1 million related to capitalized software development reflected in product development expenses was recorded during the years ended June 30, 2012, 2011 and 2010, respectively. The Company recorded amortization of capitalized software development costs reflected in selling, administrative and other operating expenses of $1.0 million, $0.6 million and $0.1 million during the years ended June 30, 2012, 2011 and 2010, respectively. |