Would Agnico Eagle Mines Limited's margins look as strong if software costs were expensed?
Software development spending capitalized each year, later amortization, the remaining asset, and operating profit under one consistent treatment.
Capitalized software and operating profit
| Fiscal year | Capitalized | Amortized | Remaining asset | Operating income (reported) | Operating income (expense-all) |
|---|---|---|---|---|---|
| 2009 | $400,000 | $800,000 | $5.2M | $158.9M | $159.3M |
| 2010 | $300,000 | $800,000 | $5.0M | $478.1M | $478.6M |
| 2011 | $1.4M | $900,000 | $5.6M | −$340.6M | −$341.1M |
| 2012 | $1.3M | $1.2M | $5.7M | $910.5M | $910.4M |
| 2013 | $2.5M | $1.4M | $6.8M | $132.0M | $130.9M |
Expense-all: operating income − capitalized additions + amortization of previously capitalized software. Other capitalized costs (e.g. contract costs) are not included.
40-F filed 2014-03-26 · CapitalizedComputerSoftwareAdditions