(1) Consists of contractual obligations from non-cancelable office space under operating leases. (2) Excludes proceeds from contractual sublease of
$10.7 million, which consists of $0.1 millionto be received in less than one year, $5.5 millionto be received in one to three years, $5.1 millionto be received in three to five years and nil to be received in more than five years.
(3) Consists of minimum purchase commitments of products and components
with our independent contract manufacturer and original design manufacturers. Obligations under contracts that we can cancel without a significant penalty are not included in the table above. (4) No amounts related to
Financial Accounting Standards BoardAccounting Standard Codification Topic 740-10, Income Taxes, are included. As of July 31, 2013, we had approximately $2.4
tax liabilities recorded related to uncertainty in income tax positions.
Off-Balance Sheet Arrangements
July 31, 2013, we did not have any relationships with unconsolidated organizations or financial partnerships, such as structured finance or special purpose entities, that would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.
Critical Accounting Policies and Estimates
Our consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances. We evaluate our estimates and assumptions on an ongoing basis. Actual results may differ from these estimates. To the extent that there are material differences between these estimates and our actual results, our future financial statements will be affected. The critical accounting policies requiring estimates, assumptions, and judgments that we believe have the most significant impact on our consolidated financial statements are described below. Revenue Recognition We generate revenue from the sales of hardware and software products, subscriptions, support and maintenance, and other services primarily through a direct sales force and indirect relationships with channel partners, and, to a lesser extent, directly to end-customers.
Revenue is recognized when all of the following criteria are met:
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• Persuasive Evidence of an Arrangement Exists. We rely upon non-cancelable
sales agreements and purchase orders to determine the existence of an arrangement. • Delivery has Occurred. We use shipping documents or transmissions of product or service contract registration codes to determine delivery.