Long-Lived Assets. NOVEMBER 30, 2003 NOVEMBER 30, 2002 Successor Predecessor ---------------------- ----------------------- ACCUMULATED ACCUMULATED COST AMORTIZATION COST AMORTIZATION ------- ------------ -------- ------------ Capital assets Furniture and equipment $13,764 $11,860 $ 13,888 $ 11,623 Computer equipment 33,726 32,034 84,205 80,217 Research and development equipment 12,389 11,168 12,389 10,896 Leasehold improvements 1,965 1,883 2,340 2,142 ------- ------- -------- -------- 61,844 56,945 112,822 104,878 Less: Accumulated amortization 56,945 104,878 ------- -------- Net book value $ 4,899 $ 7,944 ======= ======== Intangible assets Licences and purchased software 11,138 10,137 27,121 25,188 Technology 49,652 4,138 31,625 19,734 ------- ------- -------- -------- 60,790 14,275 58,746 44,922 Less: Accumulated amortization 14,275 44,922 ------- -------- Net book value $46,515 $ 13,824 ======= ======== FISCAL 2002 TECHNOLOGY WRITE-DOWN In fiscal 2002, circumstances suggested the possible impairment of technology. An independent valuation of the majority of Corel's intangible assets indicated an impairment in value existed. The independent valuator relied primarily on the income approach, under which fair market value is a function of the future revenue expected to be generated by an asset, net of all allocable expenses. The income approach focuses on the income-producing capability of the developed software and the core technology, and best represents the present value of the future economic benefits expected to be derived. Corel prepared a valuation on the intangible assets not covered in the independent valuator's report. This valuation resulted in a total write off of $17.8 million, which included a write-off of technology acquired from SoftQuad Software, Ltd. ("Softquad") of $11.0 million and technology acquired from Micrografx, Inc. ("Micrografx") of $6.7 million. The technology write-offs were non cash charges to income.
Long-Lived Assets. In the case of a capital asset with an estimated life of more than 50 years, the final maturity date of the secured loan shall be the lesser of—
Long-Lived Assets. The Company evaluates long-lived assets for impairment on an annual basis, when relocating or closing a facility, or when events or changes in circumstances may indicate the carrying amount of the asset group, generally an individual warehouse, may not be fully recoverable. For asset groups held and used, including warehouses to be relocated, the carrying value of the asset group is considered recoverable when the estimated future undiscounted cash flows generated from the use and eventual disposition of the asset group exceed the respective carrying value. In the event that the carrying value is not considered recoverable, an impairment loss is recognized for the asset group to be held and used equal to the excess of the carrying value above the estimated fair value of the asset group. For asset groups classified as held-for-sale (disposal group), the carrying value is compared to the disposal group’s fair value less costs to sell. The Company estimates fair value by obtaining market appraisals from third party brokers or using other valuation techniques.
Long-Lived Assets. All property, capitalized in accordance with GAAP with an expected life of not less than fifteen (15) years as reflected on the books and records of Tenant’s Parent immediately prior to the transfer of such assets pursuant to the Distribution Agreement or, with respect to those assets purchased, replaced or otherwise maintained by Tenant after the date hereof, as classified by Tenant in accordance with GAAP.
Long-Lived Assets. During the fiscal years ended, 2005 and 2006, the Company acquired a salt delivery company which resulted in intangibles of $3,831,980 and customers of $235,000. In accordance with SFAS 144 “Accounting for the Impairment or Disposal of Long-Lived Assets,” the Company determined through a review of Delivery’s expected undiscounted cash flows that the current value of the intangibles exceeded its carrying value as follows: May 31, 2008 May 26, 2007 Intangible, Step Saver Acquisition $ 3,831,980 $ 3,831,980 Customer Lists 235,000 235,000 Accumulated Amortization (1,306,379 ) (1,149,897 ) Total impairment charges (2,348,696 ) (2,348,696 ) $ 411,905 $ 568,387 Intangible assets are being amortized on a straight line basis over 8 years and customer lists are being amortized over 3 years. Amortization expense for the years ended May 31, 2008 and May 26, 2007 was $156,482 and $382,957, respectively. In fiscal years 2005 and 2006 the Company recorded total impairment charges of approximately $1.4 million related to the goodwill and intangible asset from the acquisition of Step Saver. During the year ended May 26, 2007, the Company recorded an impairment charge of approximately $950,000 related to the intangible asset.
Long-Lived Assets. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. STOCK-BASED COMPENSATION The Company accounts for its stock-based compensation plans under Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees," and related interpretations, and follows the disclosure provisions of Statement of Financial Accounting Standards No. 123, (SFAS No. 123) "Accounting for Stock-Based Compensation." See Note 9 for the required disclosures under SFAS No. 123. OTHER RECENT PRONOUNCEMENTS The Company intends to adopt Statement of Financial Standards No. 130 (SFAS No. 130), "Reporting Comprehensive Income" and Statement of Financial Standards No. 131 (SFAS No. 131), "Disclosures About Segments of an Enterprise and Related Information" in fiscal 1999. Both will require additional disclosures but will not have a material effect on the Company's consolidated financial position or results of operations. SFAS No. 130 will be reflected in the Company's first quarter 1999 interim financial statements and establishes standards for the reporting and display of comprehensive income and its components (revenues, expenses, gains and losses) in a full set of general-purpose financial statements. SFAS No. 131 requires segments to be determined based upon how management measures performance and makes decisions about allocating resources. SFAS No. 131 will first be reflected in the Company's 1999 Form 10-K. RECLASSIFICATIONS Certain September 30, 1997 amounts have been reclassified to conform to the September 30, 1998 presentation. TRANSACTION SYSTEMS ARCHITECTS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Long-Lived Assets. It is the Company's policy to review the carrying value of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Measurement of the impairment loss is based on fair value of the asset. Generally, fair value will be determined using valuation techniques such as the present value of expected future cash flows. INCOME TAXES: The Company and its subsidiaries file consolidated federal tax returns. Deferred taxes are recognized for the amount of taxes payable or deductible in future years as a result of differences between the tax bases of assets and liabilities and their reported amounts in the financial statements.
Long-Lived Assets. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. STOCK-BASED COMPENSATION The Company accounts for its stock-based compensation plans under Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees," and related interpretations, and follows the disclosure provisions of SFAS No. 123 "Accounting for Stock-Based Compensation." See Note 10 for the required disclosures under SFAS No. 123. 38 TRANSACTION SYSTEMS ARCHITECTS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Long-Lived Assets. The Company routinely evaluates the carrying value of its long-lived assets. The Company records impairment losses on long-lived assets used in operations when events and circumstances indicate that assets may be impaired and the undiscounted cash flows estimated to be generated by the assets are less than the carrying amount of those assets. If an impairment exists, the charge to operations is measured as the excess of the carrying amount over the fair value of the assets. RESEARCH AND DEVELOPMENT COSTS The Company expenses all research and development costs as incurred. Research and Development costs include costs of personnel, external services, supplies, facilities and miscellaneous other costs. RESULTS OF OPERATIONS YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999 Revenues totaled $805,000, $74,000 and $5,022,000 for the years ending December 31, 2001, 2000 and 1999, respectively. Revenues for 2001 are from grants received from the National Institute of Health's Small Business Innovation Research (SBIR) office for research relating to our Neural & Liver stem cell programs ($505,000) and from the assignment to Modex Therapeutics, Ltd., of our retained rights to a portion of certain possible future revenues arising out of our sale of our former Encapsulated Cell Technology (ECT) to Neurotech, S.A.($300,000). Revenues for 2000 were from Neurotech, SA. in return for that sale of our ECT intellectual property assets described above under "Research and Development Programs" above. Revenues for 1999 were from collaborative agreements, earned primarily from a Development, Marketing and License Agreement with AstraZeneca Group plc, which was signed in March 1995 and which related to the ECT. The decrease in revenues from 1999 to 2000 resulted primarily from the June 1999 termination of the agreement with AstraZeneca. The increase from 2000 to 2001 was primarily due to the receipt of money from grants. There were no receipts from grants in 2000. Research and development expenses totaled $8,603,000 in 2001, as compared to $5,979,000 in 2000 and $9,984,000 in 1999. The increase of $2,624,000, or 44%, from 2000 to 2001 was primarily attributable to the costs related to leasing a larger facility and an increase in personnel to facilitate the expansion of our research and initiate development. Our program in neural stem and progenitor cells has entered the preclinical stage, as we focus increasingly on testing human neural stem cells in small animal models of human dise...
Long-Lived Assets. Long-lived assets with recorded values that are not expected to be recovered through future cash flows are written-down to estimated fair value in accordance with SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets,” as amended. Under SFAS 144, an asset shall be tested for impairment when events or circumstances indicate that its carrying value may not be recoverable. The carrying value of a long- lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying value exceeds the sum of the undiscounted cash flows, an impairment loss equal to the amount the carrying value exceeds the fair value of the asset is recognized. Fair value is generally determined from estimated discounted future net cash flows. We adopted SFAS 144 on January 1, 2002. There were no asset impairments in 2005 or 2003. In 2004, we recognized a charge of approximately $2.0 million associated with taking our pipeline in the Illinois Basin out of service. The amount of the impairment represented the remaining net book value of the idled pipeline system and is included as a component of depreciation and amortization in the consolidated statements of operations. This pipeline did not support spending the capital necessary to continue service and we shifted the majority of the gathering and transport activities to trucks. Other, net Other assets net of accumulated amortization consist of the following: December 31, 2005 2004 (in millions) Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $47.4 $ 47.
