|
|
 | | | |
- close
- close
- close
- close
| |||||||||
These excerpts taken from the NXTM 10-K filed Mar 16, 2009. Revenue
Recognition
We recognize revenues from product sales and services when
earned in accordance with Staff Accounting
Bulletin No. 104 or SAB, No. 104, Revenue
Recognition, and Emerging Issues Task Force Issue,
Revenue Arrangements with Multiple Deliverables, or
EITF 00-21.
Revenues are recognized when: (a) there is persuasive
evidence of an arrangement, (b) the product has been
shipped or services and supplies have been provided to the
customer, (c) the sales price is fixed or determinable and
(d) collection is reasonably assured.
Revenue Recognition We recognize revenues from product sales and services when earned in accordance with Staff Accounting Bulletin No. 104 or SAB, No. 104, Revenue Recognition, and Emerging Issues Task Force Issue, Revenue Arrangements with Multiple Deliverables, or EITF 00-21. Revenues are recognized when: (a) there is persuasive evidence of an arrangement, (b) the product has been shipped or services and supplies have been provided to the customer, (c) the sales price is fixed or determinable and (d) collection is reasonably assured. These excerpts taken from the NXTM 10-K filed Mar 7, 2008. Revenue
Recognition
We recognize revenues from product sales and services when
earned in accordance with Staff Accounting Bulletin, or SAB,
No. 104, Revenue Recognition , and Emerging Issues
Task Force, or EITF,
00-21,
Revenue Arrangements with Multiple Deliverables. Revenues
are recognized when: (a) there is persuasive evidence of an
arrangement, (b) the product has been shipped or services
and supplies have been provided to the customer, (c) the
sales price is fixed or determinable and (d) collection is
reasonably assured.
Revenue Recognition We recognize revenues from product sales and services when earned in accordance with Staff Accounting Bulletin, or SAB, No. 104, Revenue Recognition , and Emerging Issues Task Force, or EITF, 00-21, Revenue Arrangements with Multiple Deliverables. Revenues are recognized when: (a) there is persuasive evidence of an arrangement, (b) the product has been shipped or services and supplies have been provided to the customer, (c) the sales price is fixed or determinable and (d) collection is reasonably assured. This excerpt taken from the NXTM 10-K filed Mar 16, 2007. Revenue
Recognition
We recognize revenues from product sales and services when
earned in accordance with Staff Accounting Bulletin, or SAB,
No. 104, Revenue Recognition, and Emerging Issues
Task Force, or EITF,
00-21,
Revenue Arrangements with Multiple Deliverables. Revenues
are recognized when: (a) there is persuasive evidence of an
arrangement, (b) the product has been shipped or services
and supplies have been provided to the customer, (c) the
sales price is fixed or determinable and (d) collection is
reasonably assured. In the critical care market, sales are
structured as direct product sales or as a disposables-based
program in which a customer acquires the equipment through the
purchase of a specific quantity of disposables over a specific
period of time. During the reported periods, the majority of our
critical care revenues were derived from direct product sales.
In the chronic care market, revenues are realized using
short-term rental arrangements. In the critical care market, we
recognize revenues from direct product sales at the later of the
time of shipment or, if applicable, delivery in accordance with
contract terms. For the chronic care market, during the reported
periods, we recognized revenues derived from rental arrangements
on a straight-line basis. These rental arrangements, which
combine the use of the System One with a specified number of
disposable products supplied to customers for a fixed amount per
month, are recognized on a monthly basis in accordance with
agreed upon contract terms and pursuant to a binding customer
purchase order and fixed payment terms.
Under a disposables-based program, the customer is granted the
right to use the equipment for a period of time, during which
the customer commits to purchase a minimum number of disposable
cartridges or fluids at a price that includes a premium above
the otherwise average selling price of the cartridges or fluids
to recover the cost of the equipment and provide for a profit.
Upon reaching the contractual minimum purchases, ownership of
the equipment transfers to the customer. Revenues under these
arrangements are recognized over the term of the arrangement as
disposables are delivered.
When we enter into a multiple-element arrangement, we allocate
the total revenue to all elements of the arrangement based on
their respective fair values. Fair value is determined by the
price charged when each element is sold separately. Our most
common multiple-element arrangements are products sold under a
disposables-based program in the critical care market as
described above. We account for the disposables-based program as
a single economic transaction and have determined that we do not
have a basis to separate the transaction into multiple elements
to recognize revenue at the time of shipment of each element.
Rather, we recognize revenue related to all elements over the
term of the arrangement as the disposables are delivered.
Our contracts provide for training, technical support and
warranty services to our customers. We recognize training and
technical support revenue when the related services are
performed. In the case of extended warranty, the revenue is
recognized ratably over the warranty period.
This excerpt taken from the NXTM 10-K filed Mar 1, 2006. (h) Revenue
Recognition
The Company recognizes revenue from product sales and services
when earned in accordance with Staff Accounting Bulletin (SAB)
No. 104, Revenue Recognition, and
EITF 00-21,
Revenue Arrangements with Multiple Deliverables. Revenues
are recognized when: (a) there is persuasive evidence of an
arrangement, (b) the product has been shipped or services
and supplies have been provided to the customer, (c) the
sales price is fixed or determinable and (d) collection is
reasonably assured. In the critical care market, sales are
structured as direct product sales or as a disposables
based-program in which a customer acquires the equipment through
the purchase of a specific quantity of disposables over a
specific period of time. In the chronic care market, revenues
are realized using short-term rental arrangements.
In the critical care market, the Company recognizes revenue from
direct product sales at the later of the time of shipment or, if
applicable, delivery in accordance with contract terms. For the
chronic market, the Company recognizes revenue derived from
short-term rental arrangements ratably over the rental period.
These rental arrangements combine the use of a system with a
specified number of disposable products supplied to customers
for a fixed amount per month. Revenue is recognized on a monthly
basis in accordance with agreed upon contract terms and pursuant
to customer purchase orders with fixed payment terms. Customer
contracts are generally cancelable on a
30-days
notice and there are no purchase requirements from customers
under the Company’s chronic agreements.
Under a disposables-based program, the customer is granted the
right to use the equipment for a period of time, during which
the customer commits to purchase a minimum number of disposable
cartridges or fluids at a price that includes a premium above
the otherwise average selling price of the cartridges or fluids
to recover the purchase of the equipment and provide for a
profit. Upon reaching the contractual minimum purchases,
ownership of the equipment transfers to the customer. Revenues
under these arrangements are recognized over the term of the
arrangement as disposables are delivered. The Company records
the cost of the equipment in inventory and amortizes the cost of
the equipment through charges to cost of revenues consistent
with the customer’s minimum purchase requirement.
When the Company enters into a multiple-element arrangement, it
allocates the total fee to all elements of the arrangement based
on their respective fair values. Fair value is determined by the
price charged when each element is sold separately. The
Company’s most common multiple-element arrangements are
products sold under a disposables-based program in the critical
care market as described above. The Company accounts for the
disposables-based program as a single economic transaction and
has determined that it does not have a basis to separate the
transaction into multiple elements to recognize revenue at the
time of shipment of each element. Rather, the Company recognizes
revenue related to all elements over the term of the arrangement
as the disposables are delivered.
The Company’s contracts provide for training, technical
support and warranty services to its customers. The Company
recognizes training revenue when the related services are
performed. In the case of extended warranty, the revenue is
recognized ratably over the warranty period.
Table of Contents
NXSTAGE
MEDICAL, INC.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
| EXCERPTS ON THIS PAGE:
|
| |||||||
