Internal Use Software. Section 3.09(b)................15 IRS....................................Section 3.13(b)................
Internal Use Software. Except as provided in Paragraph 7.1.3, IMATION shall use any 3M Software, other than that identified in Paragraph 7.1.1, only for IMATION's own internal operations (including, but not limited to, research, development, manufacture, purchasing, accounting, engineering, marketing, merchandising, selling, leasing, servicing or finance) and only in a manner consistent with the rights expressly granted to IMATION under Articles 2 and 3 of this Agreement. Such use may include loading and executing such software on computers owned or leased by IMATION (or, where appropriate and agreed between the parties, remotely accessing such software loaded on 3M computers and executing such software via such remote access). Access to, and use of, such software shall be restricted to IMATION Employees, and to such contract workers, consultants and other contractors who have executed a nondisclosure agreement limiting the access to and use of the software for IMATION's strictly internal purposes. Such software shall be considered 3M Confidential Information, and may not be sublicensed or otherwise transferred at any time to any third party, except that it may be sublicensed or otherwise transferred to IMATION Affiliates only for use by IMATION Affiliates in their internal operations.
Internal Use Software. In accordance with the authoritative guidance, GetGo capitalizes external direct costs of materials and services and internal costs such as payroll and benefits of those employees directly associated with the development of new functionality in internal use software and software developed related to its service offerings. The amount of costs capitalized in 2015 and 2014 relating to internal use software was $46.7 million and $34.7 million, respectively. These costs are being amortized over the estimated useful life of the software, which is generally two to three years, and are included in property and equipment in the accompanying Combined Balance Sheets. The total amounts charged to expense relating to internal use software was approximately $37.1 million, $30.5 million and $24.9 million, during the years ended December 31, 2015, 2014 and 2013, respectively. Table of Contents GETGO NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) Revenue Recognition GetGo derives net revenues primarily from subscription fees related to its services, which are purchased by customers, and are centrally hosted by GetGo. Net revenues from GetGo’s service agreements are recognized ratably over the subscription term and when all of the following criteria are met: persuasive evidence of the arrangement exists; the service has been provided and GetGo has no remaining obligations; the fee is fixed or determinable; and collectability is probable. Subscription periods primarily range from one month to one year in duration. GetGo’s software cannot be run on another entity’s hardware nor do customers have the right to take possession of the software and use it on their own or another entity’s hardware. In addition, net revenues may also include set-up fees, which are recognized ratably over the contract term or the expected customer life, whichever is longer. XxxXx’s services are considered hosted service arrangements per the authoritative guidance; accordingly, GetGo follows the authoritative guidance when accounting for these service arrangements. Deferred Revenue Deferred revenue primarily consists of xxxxxxxx and payments received in advance of revenue recognition. GetGo primarily bills and collects payments from customers for service offerings in advance on a monthly and annual basis. Deferred revenue to be recognized in the next twelve months is included in current deferred revenue, and the remaining amounts are included in long-term deferred revenue in the Combined Balance S...
