Notes to Consolidated Financial Statements (in thousands, except share and per share data) Property and equipment consist of the following: Depreciation and amortization expense related to property and equipment was $14,442, $10,451 and $7,516 for the years ended December 31, 2004, 2003 and 2002, respectively. Accrued expenses and other current liabilities consist of the following: On February 27, 2004, the Company acquired Ygyan Consulting Private Ltd. (“Ygyan”), an India-based SAP services provider, for $1,676. Ygyan was acquired to increase the Company’s SAP service capabilities. On November 24, 2003, the Company acquired the stock of Infopulse Nederland B.V. (“Infopulse”), a Netherlands-based informa- tion technology services company specializing in the banking and financial services industry for approximately $6,900 (including approxi- mately $400 of direct deal costs) of which approximately $1.1 million is payable in 2005. Additional purchase price, not to exceed 3.5 million Euros (approximately $4,700), payable in 2006 is contingent on Infopulse achieving certain revenue and operating income targets for the 24-month period ending December 31, 2005. This acquisition will allow the Company to improve its service capabilities in the Benelux region by adding local client partners, industry expertise and local language capability. On April 1, 2003, the Company acquired the U.S.-based company of ACES International, Inc. (“ACES”), that specializes in Customer Relationship Management solutions, serving clients in healthcare, financial services and telecommunications verticals, for approximately $4,700 (including approximately $500 of direct deal costs).  The Company has accounted for the acquisitions of Ygyan, Infopulse and ACES as business combinations under the provisions of SFAS No. 141, “Business Combinations.” The operating results of Ygyan, Infopulse and ACES have been included in the consolidated financial statements of the Company, effective February 27, 2004, November 24, 2003 and April 1, 2003, respectively. The Company recorded approximately $7,600 of goodwill and $1,800 of intangible assets, principally customer relationships, in connection with the 2003 acquisitions. See Note 5. On June 30, 2002, Cognizant Technology Solutions Ireland Limited (“Cognizant Ireland”), a newly formed wholly-owned subsidiary of the Company, purchased certain assets and assumed certain liabilities from UnitedHealthcare Ireland Limited (“UHCI”), a subsidiary of UnitedHealth Group, for $3,043 (including approximately $143 of direct deal costs). In accordance with SFAS No. 142, this transaction was determined to be an acquisition of assets, not a business combi- nation. UHCI, through Cognizant Ireland, provides application development and maintenance services. See Note 2. On October 29, 2002, the Company completed the transfer of Silverline Technologies, Inc.’s (“Silverline”) practice, which serviced a major financial services company to the Company for $10,424 (includ- ing approximately $620 of direct deal costs). In accordance with SFAS No. 142, this transaction was determined to be an acquisition of assets, not a business combination. Under the terms of the transfer, the Company provides application design, development and mainte- nance services to such major financial services company through an acquired workforce of approximately 300 IT and support professionals located primarily in the United States and India. In accordance with SFAS No. 142, the Company has allocated, based upon independent appraisals, the respective purchase prices to the UHCI and Silverline tangible and intangible assets and liabilities acquired. The operating results of Cognizant Ireland and Silverline have been included in the consolidated financial statements of the Company effective July 1 and October 29, 2002, respectively. The Company recorded intangible assets of approximately $13,200 in connection with the 2002 acquisitions. See Note 5. COGNIZANT ANNUAL REPORT 2004 37 3. Supplemental Financial Data Property and Equipment Accrued Expenses and Other Liabilities 4. Acquisitions Buildings 30 $ 17,964 $ 17,783 Computer equipment and purchased software 3 49,951 34,564 Furniture and equipment 5 – 9 23,168 18,636 Land 10,272 1,743 Capital work-in-progress 14,737 692 Leasehold improvements Over shorter of lease term or life of asset 22,049 19,188 Sub-total 138,141 92,606 Accumulated depreciation and amortization (47,436) (34,168) Property and Equipment - Net $ 90,705 $ 58,438 Estimated Useful Life December 31, (Years) 2004 2003 Accrued compensation and benefits $ 58,629 $ 30,092 Accrued taxes 2,171 1,497 Deferred revenue 15,044 4,821 Accrued professional fees 4,404 3,623 Accrued vacation  7,790 5,015 Accrued travel and entertainment 6,266 3,674 Other 9,566 4,491 Total $103,870 $ 53,213 December 31, 2004 2003