Citrix 2009 Annual Report Download - page 92

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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Intangible Assets
The Company has intangible assets which were primarily acquired in conjunction with business
combinations and technology purchases. Intangible assets with finite lives are recorded at cost, less accumulated
amortization. Amortization is recognized on a straight-line basis over the estimated useful lives of the respective
assets, generally three to seven years, except for patents, which are amortized over the lesser of their remaining
life or ten years. In accordance with the FASB’s authoritative guidance,the Company records acquired product
related intangible assets at net realizable value and reviews this technology for impairment on a periodic basis by
comparing the estimated net realizable value to the unamortized cost of the technology. As of December 31, 2009
the Company had $35.3 million in unamortized acquired product related intangibles and recorded $7.9 million in
amortization during the year ended December 31, 2009 related to these assets. There have been no material
impairments of these assets for any of the periods presented.
Intangible assets consist of the following (in thousands):
December 31, 2009
Gross Carrying
Amount
Accumulated
Amortization
Weighted Average
Life
Product related intangible assets ......................... $316,563 $172,290 5.87 years
Other intangible assets ................................ 164,978 96,056 6.19 years
Total .......................................... $481,541 $268,346 5.98 years
December 31, 2008
Gross Carrying
Amount
Accumulated
Amortization
Weighted Average
Life
Product related intangible assets ......................... $314,383 $128,682 5.88 years
Other intangible assets ................................ 163,896 79,375 6.06 years
Total .......................................... $478,279 $208,057 5.94 years
Other intangible assets consist primarily of customer relationships, trade names, covenants not to compete
and patents. Amortization of product related intangible assets includes amortization of product related
technologies and patents and is reported as a cost of net revenues in the accompanying consolidated statements of
income. Amortization of other intangible assets includes amortization of customer relationships, trade names and
covenants not to compete and is reported as an operating expense in the accompanying consolidated statements
of income.
Estimated future annual amortization expense is as follows (in thousands):
Year ending December 31,
2010 .......................................................................... $60,851
2011 .......................................................................... 50,262
2012 .......................................................................... 35,281
2013 .......................................................................... 28,860
2014 .......................................................................... 22,846
F-12