Citrix 2000 Annual Report Download - page 44

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42
CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS −− (CONTINUED)
Accounts Receivable
Substantially all of the Company's accounts receivable are due from
distributors and value−added resellers of microcomputer software. Collateral is
not required. Credit losses and expected product returns are provided for in the
consolidated financial statements and have been within management's
expectations. No significant customer or group of customers within a certain
geographical region represent a significant concentration of credit risk.
Inventories
Inventories, consisting primarily of raw materials, are stated at the lower
of cost (determined by the first−in, first−out method) or market.
Property and Equipment
Property and equipment is stated at cost. Depreciation is computed using
the straight−line method over the estimated useful lives of the assets which is
approximately three years for computer equipment, software, office equipment and
furniture, and the lesser of the lease term or five years for leasehold
improvements. Assets under capital lease are amortized over the shorter of the
asset life or the remaining lease term, which on average is approximately 60
months. Amortization of assets under capital leases is included in depreciation
expense. Accumulated amortization of equipment under capital leases approximated
$374,700 and $504,700 at December 31, 2000 and 1999, respectively.
Property and equipment consist of the following:
DECEMBER 31
−−−−−−−−−−−−−−−−−−−−
2000 1999
−−−−−−−− −−−−−−−−
(IN THOUSANDS)
Equipment under capital leases.............................. $ 406 $ 630
Computer equipment and software............................. 59,670 29,163
Property, equipment and furniture........................... 10,937 5,679
Leasehold improvements...................................... 19,915 11,981
−−−−−−−− −−−−−−−−
90,928 47,453
Less accumulated depreciation and amortization.............. (35,369) (15,923)
−−−−−−−− −−−−−−−−
$ 55,559 $ 31,530
======== ========
Intangible Assets
Goodwill and other intangible assets are being amortized using the
straight−line method over periods ranging from three to four years. Core
technology and certain specifically identified intangible assets acquired in
previous business combinations are periodically reviewed to determine if any
impairment exists based upon projected undiscounted net cash flows of the
related technology and acquired assets. The Company periodically reviews
goodwill to determine if any impairment exists based upon projected,
undiscounted net cash flows of the Company.
F−8