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HAS » Topics » Royalties

This excerpt taken from the HAS 10-K filed Mar 9, 2005.

Royalties

        The Company enters into license agreements with inventors, designers and others for the use of intellectual properties in its products. These agreements may call for payment in advance or future payment for minimum guaranteed amounts. Amounts paid in advance are recorded as an asset and charged to expense as revenue from the related products is recognized. If all or a portion of the minimum guaranteed amounts appear not to be recoverable through future use of the rights obtained under license, the nonrecoverable portion of the guaranty is charged to expense at that time.

"Royalties" elsewhere:

Electronic Arts (ERTS)
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