Autodesk 2007 Annual Report Download - page 139

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79
2007 Annual Report
AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 1. Business and Summary of Significant Accounting Policies (Continued)
Computer equipment, software, furniture, leasehold improvements and the related accumulated
depreciation at January 31 were as follows:
2007 2006
Computer equipment, software and furniture, at cost . . . . . . . . . . . . . . . $ 224.4 $208.0
Leasehold improvements, at cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43.0 35.0
267.4 243.0
Less: Accumulated depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (201.8) (181.6)
Computer equipment, software, furniture and other
leasehold improvements, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 65.6 $ 61.4
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, 2007 and January 31, 2006.
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 revenues, was
$12.9 million in fiscal 2007, $8.2 million in fiscal 2006 and $15.7 million in fiscal 2005.