Citrix 2007 Annual Report Download - page 86

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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
reviews this technology for impairment on a periodic basis by comparing the estimated net realizable value to the
unamortized cost of the technology. There has been no impairment of these assets for any of the periods
presented.
Intangible assets consist of the following (in thousands):
December 31, 2007
Gross Carrying
Amount
Accumulated
Amortization
Weighted Average
Life
Core and product technologies .............. $ 260,937 $ 83,633 6.06 years
Other ................................. 154,724 55,713 6.19 years
Total .............................. $ 415,661 $ 139,346 6.11 years
December 31, 2006
Gross Carrying
Amount
Accumulated
Amortization
Weighted Average
Life
Core and product technologies .............. $ 137,071 $ 55,301 5.58 years
Other ................................. 85,754 37,062 5.29 years
Total .............................. $ 222,825 $ 92,363 5.47 years
Other intangible assets consist primarily of customer relationships, trade names, covenants not to compete
and patents. Amortization of product related intangible assets includes amortization of core and product
technologies and patents and is reported as a cost of revenues in the accompanying consolidated statements of
income. Amortization of other intangible assets includes amortization of customer relationships, trade names and
covenants not to compete and is reported as an operating expense in the accompanying consolidated statements
of income.
Estimated future annual amortization expense is as follows (in thousands):
Year ending December 31,
2008 ................................................ $ 62,335
2009 ................................................ 55,143
2010 ................................................ 48,771
2011 ................................................ 38,061
2012 ................................................ 22,844
During 2006, the Company retired approximately $56.8 million of fully amortized intangible assets that
were no longer in use from its books.
Software Development Costs
SFAS No. 86, Accounting for the Costs of Computer Software to be Sold, Leased, or Otherwise Marketed,
requires certain software development costs to be capitalized upon the establishment of technological feasibility.
The establishment of technological feasibility and the ongoing assessment of the recoverability of these costs
requires considerable judgment by feasibility and the ongoing assessment of the recoverability of these costs
requires considerable judgment by management with respect to certain external factors such as anticipated future
revenue, estimated economic life, and changes in software and hardware technologies. Software development
F-12