Property And Equipment

12 Months Ended

Dec. 31, 2011

6.	PROPERTY AND EQUIPMENT

Property and equipment consists of the following:

(In thousands)	As of December 31,
	2011			2010
Land and land improvements	$	2,251		$	2,251
Building and improvements		12,169			11,843
Data processing equipment and software		37,217			33,536
Office furniture and equipment		2,941			2,941
Leasehold improvements		111			111
Total property and equipment		54,689			50,682
Less: Accumulated depreciation on property and equipment		(36,217	)		(34,371	)
Total property and equipment, net	$	18,472		$	16,311

Depreciation expense on property and equipment was $4.1 million, $4.4 million and $5.1 million for the years ended December 31, 2011, 2010 and 2009, respectively.

For the years ended December 31, 2011, 2010 and 2009, we capitalized software developed for internal use of $1.8 million, $1.9 million and $1.0 million, respectively. As of December 31, 2011 and 2010, capitalized software costs, net of accumulated depreciation, totaled $2.0 million and $2.9 million, respectively.

During 2010, we determined that we would no longer use certain components of software that we were developing for internal use. As a result, the costs we had previously capitalized related to these software components were considered impaired. We recognized impairment of $1.4 million for the year ended December 31, 2010, of which $0.7 million was included in salaries and wages expense and $0.7 million was included in general and administrative expense.

- 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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