FORM » Topics » Revenue Recognition

These excerpts taken from the FORM 10-K filed Feb 27, 2009.

Revenue Recognition

        We recognize revenue in accordance with Staff Accounting Bulletin No. 104, "Revenue Recognition," and all related interpretations. Revenue is recognized when all of the following criteria have been met:

    When persuasive evidence of an arrangement exists. Contracts and customer purchase orders are generally used to determine the existence of an arrangement.

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Table of Contents


FORMFACTOR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENT (Continued)

Note 2—Summary of Significant Accounting Policies: (Continued)

    Delivery has occurred. Shipping documents and customer acceptance, when applicable, are used to verify delivery.

    The fee is fixed or determinable. We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment.

    Collectibility is reasonably assured. We assess collectibility based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer's payment history.

        In instances where final acceptance of the product, system, or solution is specified by the customer, revenue is deferred until all acceptance criteria have been met.

        In multiple element arrangements, the Company determines whether there is more than one unit of accounting. To the extent that the deliverables are separable into multiple units of accounting, the Company then allocates the total fee on such arrangements to the individual units of accounting based on relative fair value of individual elements.

        The Company offers product maintenance and repair arrangements to its customers. Amounts due from customers under these arrangements are initially recorded as deferred revenues. The fees are recognized as revenue on a straight-line basis over the service period and related costs are recorded as incurred.

        Revenues from the licensing of the Company's design and manufacturing technology, which have been insignificant to date, are recognized over the term of the license agreement or when the significant contractual obligations have been fulfilled.

Revenue Recognition





        We recognize revenue in accordance with Staff Accounting Bulletin No. 104, "Revenue Recognition," and all related
interpretations. Revenue is recognized when all of the following criteria have been met:





    When persuasive evidence of an arrangement exists. Contracts and customer purchase orders are generally used to determine
    the existence of an arrangement.


74









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FORMFACTOR, INC.



NOTES TO CONSOLIDATED FINANCIAL STATEMENT (Continued)




Note 2—Summary of Significant Accounting Policies: (Continued)







    Delivery has occurred. Shipping documents and customer acceptance, when applicable, are used to verify delivery.


    The fee is fixed or determinable. We assess whether the fee is fixed or determinable based on the payment terms associated
    with the transaction and whether the sales price is subject to refund or adjustment.



    Collectibility is reasonably assured. We assess collectibility based primarily on the creditworthiness of the customer as
    determined by credit checks and analysis, as well as the customer's payment history.



        In
instances where final acceptance of the product, system, or solution is specified by the customer, revenue is deferred until all acceptance criteria have been met.



        In
multiple element arrangements, the Company determines whether there is more than one unit of accounting. To the extent that the deliverables are separable into multiple units of
accounting, the Company then allocates the total fee on such arrangements to the individual units of accounting based on relative fair value of individual elements.




        The
Company offers product maintenance and repair arrangements to its customers. Amounts due from customers under these arrangements are initially recorded as deferred revenues. The fees
are recognized as revenue on a straight-line basis over the service period and related costs are recorded as incurred.



        Revenues
from the licensing of the Company's design and manufacturing technology, which have been insignificant to date, are recognized over the term of the license agreement or when the
significant contractual obligations have been fulfilled.





Revenue Recognition





        We recognize revenue in accordance with Staff Accounting Bulletin No. 104, "Revenue Recognition," and all related
interpretations. Revenue is recognized when all of the following criteria have been met:





    When persuasive evidence of an arrangement exists. Contracts and customer purchase orders are generally used to determine
    the existence of an arrangement.


74









HREF="#bg71401a_main_toc">Table of Contents





FORMFACTOR, INC.



NOTES TO CONSOLIDATED FINANCIAL STATEMENT (Continued)




Note 2—Summary of Significant Accounting Policies: (Continued)







    Delivery has occurred. Shipping documents and customer acceptance, when applicable, are used to verify delivery.


    The fee is fixed or determinable. We assess whether the fee is fixed or determinable based on the payment terms associated
    with the transaction and whether the sales price is subject to refund or adjustment.



    Collectibility is reasonably assured. We assess collectibility based primarily on the creditworthiness of the customer as
    determined by credit checks and analysis, as well as the customer's payment history.



        In
instances where final acceptance of the product, system, or solution is specified by the customer, revenue is deferred until all acceptance criteria have been met.



        In
multiple element arrangements, the Company determines whether there is more than one unit of accounting. To the extent that the deliverables are separable into multiple units of
accounting, the Company then allocates the total fee on such arrangements to the individual units of accounting based on relative fair value of individual elements.




        The
Company offers product maintenance and repair arrangements to its customers. Amounts due from customers under these arrangements are initially recorded as deferred revenues. The fees
are recognized as revenue on a straight-line basis over the service period and related costs are recorded as incurred.



        Revenues
from the licensing of the Company's design and manufacturing technology, which have been insignificant to date, are recognized over the term of the license agreement or when the
significant contractual obligations have been fulfilled.





Revenue Recognition





        We recognize revenue in accordance with Staff Accounting Bulletin No. 104, "Revenue Recognition," and all related
interpretations. Revenue is recognized when all of the following criteria have been met:





    When persuasive evidence of an arrangement exists. Contracts and customer purchase orders are generally used to determine
    the existence of an arrangement.


74









HREF="#bg71401a_main_toc">Table of Contents





FORMFACTOR, INC.



NOTES TO CONSOLIDATED FINANCIAL STATEMENT (Continued)




Note 2—Summary of Significant Accounting Policies: (Continued)







    Delivery has occurred. Shipping documents and customer acceptance, when applicable, are used to verify delivery.


    The fee is fixed or determinable. We assess whether the fee is fixed or determinable based on the payment terms associated
    with the transaction and whether the sales price is subject to refund or adjustment.



    Collectibility is reasonably assured. We assess collectibility based primarily on the creditworthiness of the customer as
    determined by credit checks and analysis, as well as the customer's payment history.



        In
instances where final acceptance of the product, system, or solution is specified by the customer, revenue is deferred until all acceptance criteria have been met.



        In
multiple element arrangements, the Company determines whether there is more than one unit of accounting. To the extent that the deliverables are separable into multiple units of
accounting, the Company then allocates the total fee on such arrangements to the individual units of accounting based on relative fair value of individual elements.




        The
Company offers product maintenance and repair arrangements to its customers. Amounts due from customers under these arrangements are initially recorded as deferred revenues. The fees
are recognized as revenue on a straight-line basis over the service period and related costs are recorded as incurred.



        Revenues
from the licensing of the Company's design and manufacturing technology, which have been insignificant to date, are recognized over the term of the license agreement or when the
significant contractual obligations have been fulfilled.





These excerpts taken from the FORM 10-K filed Feb 27, 2008.

Revenue Recognition

        The Company recognizes revenue when title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, delivery has occurred or services have been rendered, the sales price is fixed or determinable, and collectibility of the resulting receivable is reasonably assured. Revenues from product sales to customers other than distributors are recognized upon shipment or delivery depending on the terms of sale. Although the Company's distributor has no price protection rights or rights to return product, other than for warranty claims, the Company defers recognition of revenue and related cost of revenues, on a gross basis, from its distributor until the distributor confirms an order from its customer.

        In multiple element arrangements, the Company determines whether there is more than one unit of accounting. To the extent that the deliverables are separable into multiple units of accounting, the Company then allocates the total fee on such arrangements to the individual units of accounting based on verifiable objective evidence of fair value using the residual method. The Company recognizes revenue for each unit of accounting depending on the nature of the deliverable(s) comprising the unit of accounting.

        The Company offers product maintenance and repair arrangements to its customers. Amounts due from customers under these arrangements are initially recorded as deferred revenues. The fees are recognized as revenue on a straight-line basis over the service period and related costs are recorded as incurred.

        Revenues from the licensing of the Company's design and manufacturing technology, which have been insignificant to date, are recognized over the term of the license agreement or when the significant contractual obligations have been fulfilled.

Revenue Recognition





        The Company recognizes revenue when title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, delivery has occurred or
services have been rendered, the sales price is fixed or determinable, and collectibility of the resulting receivable is reasonably assured. Revenues from product sales to customers other than
distributors are recognized upon shipment or delivery depending on the terms of sale. Although the Company's distributor has no price protection rights or rights to return product, other than for
warranty claims, the Company defers recognition of revenue and related cost of revenues, on a gross basis, from its distributor until the distributor confirms an order from its customer.



        In
multiple element arrangements, the Company determines whether there is more than one unit of accounting. To the extent that the deliverables are separable into multiple units of
accounting, the Company then allocates the total fee on such arrangements to the individual units of accounting based on verifiable objective evidence of fair value using the residual method. The
Company recognizes revenue for each unit of accounting depending on the nature of the deliverable(s) comprising the unit of accounting.



        The
Company offers product maintenance and repair arrangements to its customers. Amounts due from customers under these arrangements are initially recorded as deferred revenues. The fees
are recognized as revenue on a straight-line basis over the service period and related costs are recorded as incurred.



        Revenues
from the licensing of the Company's design and manufacturing technology, which have been insignificant to date, are recognized over the term of the license agreement or when the
significant contractual obligations have been fulfilled.





This excerpt taken from the FORM 10-K filed Nov 13, 2007.

Revenue Recognition

        The Company recognizes revenue when title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, delivery has occurred or services have been rendered, the sales price is fixed or determinable, and collectibility of the resulting receivable is reasonably assured. Revenues from product sales to customers other than distributors are recognized upon shipment or delivery depending on the terms of sale. Although the Company's distributor has no price protection rights or rights to return product, other than for warranty claims, the Company defers recognition of revenue and related cost of revenues, on a gross basis, from its distributor until the distributor confirms an order from its customer.

        In multiple element arrangements, the Company determines whether there is more than one unit of accounting. To the extent that the deliverables are separable into multiple units of accounting, the Company then allocates the total fee on such arrangements to the individual units of accounting based on verifiable objective evidence of fair value using the residual method. The Company recognizes revenue for each unit of accounting depending on the nature of the deliverable(s) comprising the unit of accounting.

        The Company offers product maintenance and repair arrangements to its customers. Amounts due from customers under these arrangements are initially recorded as deferred revenues. The fees are recognized as revenue on a straight-line basis over the service period and related costs are recorded as incurred.

        Revenues from the licensing of the Company's design and manufacturing technology, which have been insignificant to date, are recognized over the term of the license agreement or when the significant contractual obligations have been fulfilled.

This excerpt taken from the FORM 10-K filed Feb 26, 2007.

Revenue Recognition

The Company recognizes revenue when title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, delivery has occurred or services have been rendered, the sales price is fixed or determinable, and collectibility of the resulting receivable is reasonably assured. Revenues from product sales to customers other than distributors are recognized upon shipment or delivery depending on the terms of sale. Although the Company’s distributor has no price protection rights or rights to return product, other than for warranty claims, the Company defers recognition of revenue and related cost of revenues, on a gross basis, from its distributor until the distributor confirms an order from its customer.

In multiple element arrangements, the Company determines whether there is more than one unit of accounting. To the extent that the deliverables are separable into multiple units of accounting, the Company then allocates the total fee on such arrangements to the individual units of accounting based on verifiable objective evidence of fair value using the residual method. The Company recognizes revenue for each unit of accounting depending on the nature of the deliverable(s) comprising the unit of accounting.

The Company offers product maintenance and repair arrangements to its customers. Amounts due from customers under these arrangements are initially recorded as deferred revenues. The fees are recognized as revenue on a straight-line basis over the service period and related costs are recorded as incurred.

Revenues from the licensing of the Company’s design and manufacturing technology, which have been insignificant to date, are recognized over the term of the license agreement or when the significant contractual obligations have been fulfilled.

61




FORMFACTOR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENT (Continued)

Note 2—Summary of Significant Accounting Policies: (Continued)

This excerpt taken from the FORM 10-K filed Mar 1, 2006.

Revenue Recognition

The Company recognizes revenue when title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, delivery has occurred or services have been rendered, the sales price is fixed or determinable, and collectibility of the resulting receivable is reasonably assured. Revenues from product sales to customers other than distributors are recognized upon shipment or delivery depending on the terms of sale. Although the Company’s distributor has no price protection rights or rights to return product, other than for warranty claims, the Company defers recognition of revenue and related cost of revenues, on a gross basis, from its distributor until the distributor confirms an order from its customer.

In multiple element arrangements, the Company determines whether there is more than one unit of accounting. To the extent that the deliverables are separable into multiple units of accounting, the Company then allocates the total fee on such arrangements to the individual units of accounting using the residual method. The Company recognizes revenue for each unit of accounting depending on the nature of the deliverable(s) comprising the unit of accounting.

The Company offers product maintenance and repair arrangements to its customers. Amounts due from customers under these arrangements are initially recorded as deferred revenues. The fees are recognized as revenue on a straight-line basis over the service period and related costs are recorded as incurred.

Revenues from the licensing of the Company’s design and manufacturing technology, which have been insignificant to date, are recognized over the term of the license agreement or when the significant contractual obligations have been fulfilled.

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