Support.com 2011 Annual Report Download - page 46
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Commercial Paper $ 6,990 $ (2) $ — $ — $ 6,990 $ (2)
Corporate Bonds 15,813 (21) — — 15,813 (21)
Corporate Notes 11,664 (14) — — 11,664 (14)
Treasuries 4,998 (1) — — 4,998 (1)
Auction-rate securities — — 2,667 (133) 2,667 (133)
Total $ 39,465 $ (38) $ 2,667 $ (133) $ 42,132 $ (171)
Property and equipment are stated at cost, less accumulated depreciation which is determined using the straight-line method over the estimated
useful lives of two years for computer equipment and software, three years for furniture and fixtures, and the shorter of the estimated useful lives or
the lease term for leasehold improvements. Repairs and maintenance costs are expensed as they are incurred.
We assess the impairment of goodwill annually or more often if events or changes in circumstances indicate that the carrying value may not be
recoverable. Consistent with our determination that we have only one reporting segment, we have determined that there is only one reporting unit and
goodwill is evaluated for impairment oat the entity level. We test goodwill using the two-step process required by ASC 350,
(“ASC 350”) In the first step, we compare the carrying amount of the reporting unit to the fair value based on quoted market prices of our
common stock. If the carrying value of the reporting unit exceeds the fair value, goodwill is potentially impaired and the second step of the
impairment test must be performed. In the second step, if such comparison reflects potential impairment, we would compare the implied fair value of
the goodwill, as defined by ASC 350, to its carrying amount to determine the amounts of impairment loss, if any.
We conduct our annual evaluation for impairment of goodwill on September 30. No goodwill impairment charges have been recorded through
December 31, 2011.
We record purchased intangible assets at fair value. Useful life is estimated as the period over which the assets are expected to contribute
directly or indirectly to the future cash flows of the Company. As we do not believe that we can reliably determine a pattern by which the economic
benefits of these assets will be consumed, management adopted straight-line amortization in accordance with ASC 350. The original cost is amortized
on a straight-line basis over the estimated useful life of each asset.
We assess the impairment of intangible assets whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. The review considers facts and circumstances, either internal or external, which indicate that the carrying value of the asset cannot be
recovered. If and when indicators of impairment exist, we assess the need to record an impairment loss, by comparing the undiscounted net cash flows
associated with related assets or group of assets over their remaining lives against their respective carrying amounts. Impairment, if any, is based on
the excess of the carrying amount over the fair value of those assets.
For all transactions, we recognize revenue only when all of the following criteria are met:
• Persuasive evidence of an arrangement exists;
• Delivery has occurred;
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