Autodesk 2008 Annual Report Download - page 133

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AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Computer equipment, software, furniture, leasehold improvements and the related accumulated depreciation
at January 31 were as follows:
2008 2007
Computer equipment, software and furniture, at cost ................ $257.9 $ 224.4
Leasehold improvements, at cost ................................ 61.2 43.0
319.1 267.4
Less: Accumulated depreciation ................................. (238.9) (201.8)
Computer equipment, software, furniture and other leasehold
improvements, net ......................................... $ 80.2 $ 65.6
Costs incurred for computer software developed or obtained for internal use are capitalized for application
development activities, if material, and immediately expensed for preliminary project activities and post-
implementation activities. These capitalized costs are amortized over the expected useful life of the software,
which is generally three years.
Software Development Costs
Software development costs incurred prior to the establishment of technological feasibility are included in
research and development expenses. Autodesk defines establishment of technological feasibility as the
completion of a working model. Software development costs incurred subsequent to the establishment of
technological feasibility through the period of general market availability of the products are capitalized and
generally amortized over a one year period, if material. Autodesk had no capitalized software development costs
at January 31, 2008 and January 31, 2007.
Purchased Technologies, Net
Purchased technologies are amortized over the estimated economic life of the product, which ranges from
one to seven years. Amortization expense, which is included as a component of cost of revenue, was
$15.9 million in fiscal 2008, $12.9 million in fiscal 2007 and $8.2 million in fiscal 2006.
Purchased technologies and related accumulated amortization at January 31 were as follows:
2008 2007
Purchased technologies ........................................ $227.5 $ 199.4
Less: Accumulated amortization ................................ (163.1) (148.1)
Purchased technologies, net .................................... $ 64.4 $ 51.3
The weighted average amortization period for purchased technologies acquired during fiscal 2008 was 5.3
years.
57
2008 Annua
l Report