Avid 2008 Annual Report Download - page 71

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66
D. ACCOUNTS RECEIVABLE
Accounts receivable, net of allowances, consisted of the following (in thousands):
December 31,
2008 2007
Accounts receivable $ 126,709 $ 159,476
Less:
Allowance for doubtful accounts (3,504) (2,160)
Allowance for sales returns and rebates (19,678) (18,624)
$ 103,527 $ 138,692
The accounts receivable balances as of December 31, 2008 and 2007, exclude approximately $8.4 million and $24.6
million, respectively, for large solution sales and certain distributor sales that were invoiced, but for which revenues
had not been recognized and payments were not then due.
E. INVENTORIES
Inventories consisted of the following (in thousands):
December 31,
2008 2007
Raw materials $22,067 $31,316
Work in process 9,296 6,179
Finished goods 64,392 79,829
$ 95,755 $ 117,324
As of December 31, 2008 and 2007, the finished goods inventory included inventory at customer locations of $17.8
million and $22.8 million, respectively, associated with products shipped to customers for which revenues had not yet
been recognized.
F. PROPERTY AND EQUIPMENT
Property and equipment consisted of the following (in thousands):
Depreciable
Life
December 31,
2008
December 31,
2007
Computer and video equipment and software 2 to 4 years $ 102,457 $ 116,413
Manufacturing tooling and testbeds 2 to 5 years 6,601 7,748
Office equipment 3 to 6 years 3,172 3,741
Furniture and fixtures 2 to 5 years 10,714 13,314
Leasehold improvements 2 to 10 years 30,655 30,762
153,599 171,978
Less accumulated depreciation and amortization 115,278 125,818
$ 38,321 $ 46,160
Depreciation and amortization expense related to property and equipment was $20.9 million, $21.1 million and $20.7
million for the years ended December 31, 2008, 2007 and 2006, respectively. The Company wrote off fully
depreciated assets with gross values of $27.6 million, $19.4 million and $4.7 million in 2008, 2007 and 2006,
respectively.