Citrix 2007 Annual Report Download - page 85

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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
During 2007 and 2006, the Company retired $6.8 million and $3.3 million, respectively, in property and
equipment that were no longer in use. At the time of retirement, the remaining net book value of these assets was
immaterial and no asset retirement obligations were associated with them.
Property and equipment consist of the following:
December 31,
2007 2006
(In thousands)
Buildings ..................................................... $ 17,781 $ 17,781
Computer equipment ........................................... 116,632 86,001
Software ..................................................... 90,105 68,185
Equipment and furniture ......................................... 27,224 21,453
Leasehold improvements ........................................ 64,188 46,532
Land ........................................................ 9,062 9,062
324,992 249,014
Less accumulated depreciation and amortization ...................... (190,085) (156,434)
$ 134,907 $ 92,580
Long-Lived Assets
The Company reviews for impairment of long-lived assets and certain identifiable intangible assets to be
held and used whenever events or changes in circumstances indicate that the carrying amount of such assets may
not be fully recoverable. Determination of recoverability is based on an estimate of undiscounted future cash
flows resulting from the use of the asset and its eventual disposition. Measurement of an impairment loss is based
on the fair value of the asset compared to its carrying value. Long-lived assets and certain identifiable intangible
assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. During 2007,
2006 and 2005, the Company did not recognize any impairment charges associated with its long-lived or
intangible assets.
Goodwill
The Company accounts for goodwill in accordance with SFAS No. 142, Goodwill and Other Intangible
Assets. SFAS No. 142, requires that goodwill and certain intangible assets are not amortized, but are subject to an
annual impairment test. At December 31, 2007 and 2006, the Company had $888.5 million and $631.7 million of
goodwill, respectively. There was no impairment of goodwill as a result of the annual impairment tests
completed during the fourth quarters of 2007 and 2006. Excluding goodwill, the Company has no intangible
assets deemed to have indefinite lives. Substantially all of the Company’s goodwill at December 31, 2007 and
December 31, 2006 was associated with the Americas and Online Services reportable segments. See Note 3 for
acquisitions and Note 12 for segment information.
Intangible Assets
The Company has intangible assets with finite lives that 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 SFAS No. 86, Accounting for the Costs of Computer Software to be Sold, Leased or
Otherwise Marketed, the Company records acquired core and product technology at net realizable value and
F-11