The ABCs of systemic healthcare reform - Cerner Corporation

A summary of the Company's purchase acquisitions for the three years ended January 3, 2009, is included in the following
table:
Amounts allocated to intangibles are amortized on a straight-line basis over three to 17 years. Amounts allocated to software
are amortized based on current and expected future revenues for each solution with minimum annual amortization equal to the
straight-line amortization over the estimated economic life of the solution.
(a) The assets and liabilities of the acquired companies at the date of acquisition are as follows:
(3) Receivables
Receivables consist of accounts receivable and contracts receivable. Accounts receivable represent recorded revenues that
have been billed. Contracts receivable represent recorded revenues that are billable by the Company at future dates under the
terms of a contract with a client. Billings and other consideration received on contracts in excess of related revenues
recognized are recorded as deferred revenue. Substantially all receivables are derived from sales and related support and
maintenance and professional services of the Company's clinical, administrative and financial information systems and
solutions to healthcare providers located throughout the United States and in certain non-U.S. countries. A summary of
receivables is as follows:
70