Software Development Costs. We capitalize eligible computer software development costs, which include software enhancement costs, upon the establishment of technological feasibility, which occur upon the completion of a working model. Software development costs capitalized have not been significant. NETWORK APPLIANCE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (DOLLAR AND SHARE AMOUNTS IN THOUSANDS, EXCEPT PER-SHARE DATA) Foreign Currency Translation and Foreign Exchange Contracts -- Prior to fiscal 1999, the functional currency of our foreign subsidiaries was the U.S. dollar. Accordingly, all monetary assets and liabilities were translated at the current exchange rate at the end of the year, nonmonetary assets and liabilities were translated at historical rates and net sales and expenses were translated at average exchange rates in effect during the period. Transaction gains and losses, which are included in other income (expense) in the accompanying consolidated statements of income, have not been significant. In fiscal 1999, we determined that the functional currencies of certain of our foreign subsidiaries had changed from the U.S. dollar to the local currencies. Accordingly, for fiscal 2000 and 1999, assets and liabilities of our foreign subsidiaries are translated to U.S. dollars at the exchange rates in effect as of the balance sheet date, and results of operations for each subsidiary are translated using average rates in effect for the period presented. Translation adjustments have been included within shareholders' equity as part of cumulative other comprehensive loss. The effect of the change in functional currencies did not have a material impact on our consolidated financial position, results of operations or cash flows. Foreign currency transaction gains and losses, which are included in the consolidated statements of income, have not been material in any of the three years presented. We utilize forward exchange contracts to hedge against the short-term impact of foreign currency fluctuations on certain assets or liabilities denominated in foreign currencies. The gains or losses on these contracts are included in income as the exchange rates change. Management believes that these forward contracts do not subject us to undue risk due to foreign exchange movements because gains and losses on these contracts are offset by losses and gains on the underlying assets and transactions being hedged. Certain Significant Risks and Uncertainties -- The preparation o...
Software Development Costs. Borrower shall not, and shall not permit any of its Subsidiaries to, pay costs or make expenditures in respect of software development in excess of $250,000 for Borrower and its Subsidiaries in an individual fiscal year of Borrower, or $500,000 in the aggregate for Borrower and its Subsidiaries during the term of the Credit Facilities.
Software Development Costs. Statements of Work and monthly invoices which include charges for Software development by EDS will include detail regarding estimates for and actual costs incurred by EDS in the development of Software and other information sufficient for Customer to comply with Statement of Position 98-1 issued by the American Institute of Certified Public Accountants all as set forth in Exhibit 4.
Software Development Costs. Borrower shall not, nor shall it permit any of its Subsidiaries to, incur Software Development Costs in an amount in excess of the following amounts for the following specified periods: (i) $3,250,000 for the twelve (12) month period commencing as of July 1, 2016 through and including June 30, 2017 and (ii) $1,250,000 for the twelve (12) month period commencing as of July 1, 2017 through and including June 30, 2018 and each twelve (12) month period thereafter. The amount of any Software Development Costs permitted to be made in respect of any twelve (12) month period shall be increased by 100% of the unused amount of Software Development Costs that were permitted to be made during the immediately preceding twelve (12) month period pursuant hereto. Software Development Costs in any twelve (12) month period shall be deemed to use first, the amount permitted for such twelve (12) month period without giving effect to any carryover amount and, second, any amount permitted to be carried forward to such twelve (12) month period.
Software Development Costs. A separation shall be made between development costs expended for maintenance purposes, which shall be recorded as an expense on the profit center's statement of income in the year in which the expenses were created, and substantial development costs expended in order to create a new advantage and which are expected to yield a profit commencing in 2018 and thereafter, which shall not be taken into account in calculating the profit of the Acquired Operation;
Software Development Costs. Software development costs are as follows ---------------------- December 31, ---------------------- 1998 1997 -------- -------- Capitalized software costs $ 39,713 $ 39,713 Less accumulated amortization (37,023) (34,834) -------- -------- $ 2,690 $ 4,879 -------- -------- Amortization of capitalized computer software development costs are included in cost of products sold and aggregated $2,189 and $24,751 for the years ended December 31, 1993 and 1997, respectively. Included in amortization of capitalized computer software development costs for the year ended December 31, 1997 were accelerated amortization charges of $17,269 for the reduction of certain capitalized costs to their net realizable value due to a change in the Company" product focus. Accelerated amortization charges in 1998 were not material.
Software Development Costs. Research and development costs incurred to establish the technological feasibility of computer software are expensed as incurred.
Software Development Costs. Costs to maintain developed programs and development costs incurred to establish the technological feasibility of computer software are expensed as incurred. The Company capitalizes costs incurred in producing computer software after technological feasibility of the software has been established. Such costs are amortized based on current and estimated future revenue of each product with an annual minimum equal to the straight-line amortization over the remaining estimated economic life of the product. The Company estimates the economic life of its software to be three years. At each balance sheet date, the unamortized capitalized software costs of each product are compared with the net realizable value of that product and any excess capitalized costs are written off. [5]
Software Development Costs. The Company capitalizes costs of producing software to be sold, leased, or otherwise marketed, incurred subsequent to establishing technological F-47 171 MEDICAL DYNAMICS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) feasibility in accordance with Statement of Financial Accounting Standards No. 86. The Company does not develop any software for internal use. Amortization of capitalized software development costs is computed on a product-by-product basis. The annual amortization is the greater of the amount computed using the ratio of current gross revenue for a product to the total of current and anticipated future gross revenue for that product or the straight-line method, not to exceed 7 years. In addition, management periodically compares the unamortized capitalized costs for each product to the net realizable value of that product. If the unamortized capitalized costs exceed the net realizable value, the excess will be charged to operations. The total amount charged to expense in the statements of operations for amortization of capitalized software costs was $446,100 and $417,800 for the years ended September 30, 1999 and 1998, respectively, and is included in cost of sales. Costs incurred in researching, designing and planning for the development of new software are classified as research and development expenses and are charged to operations as incurred. OTHER INTANGIBLE ASSETS. Other intangible assets are stated at cost and are amortized utilizing the straight-line method over the following estimated useful lives:
Software Development Costs. The Company accounts for software development costs in accordance with Statement of Financial Accounting Standards (SFAS) No. 86. Under SFAS No. 86, capitalization of software development costs begins upon the establishment of technological feasibility. Technological feasibility for the Company's software products is based upon achievement of detailed designs, free of high-risk development issues. The Company amortizes capitalized software development costs on a product-by-product, straight-line basis over the remaining estimated economic life of the related products which is generally a maximum of three years. In 1997, capitalized software development costs totaling approximately $354,000 were written off as it was determined that certain products had no remaining economic life. This charge is included in the unusual charge on the accompanying statement of operations.
