Avid 1997 Annual Report Download - page 38

Download and view the complete annual report

Please find page 38 of the 1997 Avid annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 58

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58

31
E. Capitalized Software Development Costs
Capitalized purchased and internally developed software costs, included in other assets at December 31, 1997 and 1996,
consist of the following (in thousands): December 31,
1997 1996
Capitalized software development costs $6,424 $6,322
Less accumulated amortization 5,483 4,595
$941 $1,727
Computer software costs capitalized during 1997, 1996, and 1995 amounted to approximately $107,000, $2,295,000, and
$3,570,000, respectively. Amortization of computer software costs during those periods was approximately $893,000,
$3,185,000, and $1,220,000, respectively. During 1996 as part of the nonrecurring costs, described in Note N, capitalized
software costs of $829,000 and accumulated amortization of $334,000 were written off.
F . Property and Equipment
Property and equipment consists of the following (in thousands):
Depreciable December 31,
Life 1997 1996
Computer and video equipment 3 to 5 years $75,042 $68,171
Office equipment 3 to 5 years 4,652 4,233
Furniture and fixtures 3 to 5 years 6,820 6,915
Leasehold improvements 3 to 10 years 13,105 12,962
99,619 92,281
Less accumulated depreciation and amortization 60,702 43,035
$38,917 $49,246
As of December 31, 1997 and 1996, property and equipment included approximately $6,607,000 of equipment under capital
leases.
G. Long Term Debt
Capital Leases
During November 1994 and January 1995, the Company entered into equipment financing arrangements with a bank for
aggregate borrowings of up to $10,000,000, at various interest rates (ranging from 4.6% to 8.1%) determined at the
borrowing date. This equipment financing arrangement expired in March 1996 and was not renewed. As of December 31,
1997 and 1996, $1,186,000 and $2,912,000, respectively was outstanding as capital leases under these arrangements.
Borrowings are collateralized by certain assets of the Company.
As of December 31, 1997, future minimum lease payments under capital leases were as follows (in thousands):
Year Amount
1998 $831
1999 412
Total minimum lease payments 1,243
Less amounts representing interest 57
Present value of minimum lease payments 1,186
Less current portion of long-term debt 783
Long-term portion of capital lease obligations $403