Support.com 2008 Annual Report Download - page 56

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Table of Contents
SUPPORTSOFT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
securities. Except for obligations of the United States government and securities issued by agencies of the United States government, we diversify our
investments by limiting our holdings with any individual issuer. We also limit the amount of credit risk exposure to any one country except the United States. We
are exposed to credit risks in the event of default by the issuers to the extent of the amount recorded on the balance sheet. The credit risk in our trade accounts
receivable is substantially mitigated by our credit evaluation process and reasonably short payment terms.
Trade Accounts Receivable and Allowance for Doubtful Accounts
Trade accounts receivable are recorded at the invoiced amount. We perform evaluations of our customers’ financial condition and generally do not require
collateral. We make judgments as to our ability to collect outstanding receivables and provide allowances for a portion of receivables when collection becomes
doubtful. Provisions are made based upon a specific review of all significant outstanding invoices. For those invoices not specifically provided for, provisions are
recorded at differing rates, based upon the age of the receivable. In determining these percentages, we analyze our historical collection experience and current
payment trends.
The following table summarizes the allowance for doubtful accounts as of December 31, 2008, 2007 and 2006 (in thousands):
Balance at
Beginning
of Period
Charged/
(Recovery) to
Costs and
Expenses Write-offs
Balance at
End
of Period
Allowance for doubtful accounts:
Year ended December 31, 2006 $ 296 $ 138 $ (61) $ 373
Year ended December 31, 2007 373 (57) (6) 310
Year ended December 31, 2008 310 (107) (6) 197
The following table lists customers representing greater than 10% of total account receivable, net as of December 31, 2008 and 2007:
% of Total
Accounts Receivable,
Net Years Ended
December 31,
2008 2007
Customer A 19% —
Customer B — —
Customer C — 12%
Customer D 12% 11%
Customer E — 11%
Included in accounts receivable and deferred revenue at December 31, 2008 is approximately $1.2 million related to maintenance billings for customers
who have elected to renew their maintenance contracts, but for which the maintenance period has not yet commenced.
Cash, Cash Equivalents and Investments
All liquid instruments with an original maturity at the date of purchase of ninety days or less are classified as cash equivalents. Cash equivalents and
short-term investments consist primarily of money market funds,
53
Source: SUPPORTSOFT INC, 10-K, March 11, 2009