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Property and Equipment and Capitalized Software Development
12 Months Ended
Jun. 30, 2012
Property and Equipment and Capitalized Software Development  
Property and Equipment and Capitalized Software Development

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.