Support.com 2009 Annual Report Download - page 60

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Table of Contents
SUPPORT.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Long-lived assets are attributed to the geographic location in which they are located. We include in long-lived assets all tangible assets. Long lived assets
regarding geographic areas are as follows (in thousands):
December 31,
2009 2008
United States $ 408 $ 995
India 39 23
Canada — 3
United Kingdom — 44
Total $ 447 $ 1,065
Recent Accounting Pronouncements
In September 2009, the FASB issued Accounting Standards Update No. 2009-13, “Multiple-Deliverable Revenue Arrangements—a consensus of the
FASB Emerging Issues Task Force” (ASU 2009-13) which updates the existing multiple-element revenue arrangements guidance currently included under ASC
605-25, which originated primarily from the guidance in EITF Issue No. 00-21, “Revenue Arrangements with Multiple Deliverables” (EITF 00-21). The revised
guidance primarily provides two significant changes: 1) eliminates the need for objective and reliable evidence of the fair value for the undelivered element in
order for a delivered item to be treated as a separate unit of accounting, and 2) eliminates the residual method to allocate the arrangement consideration. In
addition, the guidance also expands the disclosure requirements for revenue recognition. ASU 2009-13 will be effective for the first annual reporting period
beginning on or after June 15, 2010, with early adoption permitted provided that the revised guidance is retroactively applied to the beginning of the year of
adoption. We are currently assessing the future impact of this new accounting update to our consolidated financial statements.
Note 2. Discontinued Operations
Support.com, Inc., formerly SupportSoft, Inc., was founded as an enterprise software provider. In 2007, we launched a premium technology services
business focused on consumers and, in 2008, reported two operating segments. The two segments were the Enterprise business (comprised of the enterprise
software and related services businesses) and the Consumer business (comprised of the consumer services business).
During the second quarter of 2009, pursuant to an Asset Purchase Agreement dated April 5, 2009, we sold substantially all of the assets and transferred
certain of the liabilities of its Enterprise business to Consona. We have retained all assets and liabilities associated with our Consumer business and intend to
continue operations in this segment. As we have irrevocably sold the Enterprise business to Consona, the operations and cash flows of the disposed business have
been completely eliminated from the ongoing operations of Support.com. We have no continuing involvement in the operations of the disposed business.
Therefore, we are reporting the Enterprise business as a discontinued operation as of June 23, 2009, and for all periods presented in accordance with ASC 360,
Accounting for the Impairment or Disposal of Long-Lived Assets.
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Source: Support.com, Inc., 10-K, March 12, 2010 Powered by Morningstar® Document Research℠