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Fortinet Inflates Operating Income by $5.3 Million With Accounting Change
Cybersecurity firm slashes depreciation expense with new useful life estimates.
August 3, 2021
Fortinet (FTNT), a cybersecurity firm, says the completion of a second building on its campus headquarters prompted it to reevaluate the useful life estimates of the company’s property and equipment. In its latest 10-Q, Fortinet revealed it is extending the useful life estimates for two types of assets:
1) Buildings and improvements now have useful life estimates of two to 40 years,up from 30 years
2) Furniture and fixtures now have useful life estimates of 3-8 years, up from 3-5 years
We estimate the change will add $5.31 million to Fortinet’s annual operating income, or 0.99% of the company’s 2020 operating income.
Related: PANW, CRWD, OKTA, CHKP, MNDT
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