Long term obligations

12 Months Ended

Dec. 31, 2011

Long term obligations

Total long term obligations as of December 31, 2011 and 2010 consist of the following (in thousands):

	2011		2010

Vendor obligations
Capital lease obligations	$	15	$	50
Deferred lease payments		418		282
Microsoft licenses ⁽¹⁾		857		-

Pension obligations
Accrued pension liability		2,293		1,730
		3,583		2,062
Less: Current portion of long term obligations		639		458
Totals	$	2,944	$	1,604

⁽¹⁾ In April 2011, the Company renewed a vendor agreement to acquire certain additional software licenses and to receive support and subsequent software upgrades on these and other currently owned software licenses through February 2014. Pursuant to this agreement, the Company is obligated to pay approximately $470,000 annually over the term of the agreement. As of December 31, 2011, the Company paid $470,000. The total cost, net of deferred interest, was allocated to the following asset accounts in 2011(in thousands):

Prepaid expenses and other current assets	$	433
Other assets		867
Property and equipment		25
	$	1,325

Amortization expense was approximately $0.6 million, in each of the three years in the period ended December 31, 2011.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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