Avid 2009 Annual Report Download - page 66

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61
Cost
Net Unrealized
Gains (Losses)
Fair Value
2008
Certificates of deposit
$
6,255
$
8
$
6,263
Commercial paper
13,474
14
13,488
Asset-backed securities
2,224
(73
)
2,151
Agency bonds
1,000
—
1,000
Agency discount notes
2,994
6
3,000
$
25,947
$
(45
)
$
25,902
All fixed income securities held at December 31, 2009 and 2008 had an effective maturity of less than one year. All income
generated from these investments has been recorded as interest income. The Company calculates realized gains and losses
on a specific identification basis. Realized gains and losses from the sale of marketable securities were not material for the
years ended December 31, 2009, 2008 and 2007.
At December 31, 2009, there were no securities whose unrealized losses were deemed by the Company to be other-than-
temporary impairments. The primary factors the Company considers in classifying an impairment as temporary or other-
than-temporary include the extent and the time the fair value of an investment has been below cost, the expected holding
and recovery period for each investment, and the Company’s intent and ability to hold each investment until recovery.
D. ACCOUNTS RECEIVABLE
Accounts receivable, net of allowances, consisted of the following at December 31, 2009 and 2008 (in thousands):
2009
2008
Accounts receivable
$
96,088
$
126,709
Less:
Allowance for doubtful accounts
(3,219
)
(3,504
)
Allowance for sales returns and rebates
(13,128
)
(19,678
)
$
79,741
$
103,527
The accounts receivable balances at Decem ber 31, 2009 and 2008, exclu d e app roximately $17.3 million and $8.4
million, respectively, for large solution sales and certain distributor sales that were invoiced, but for which revenues had
not been recognized and payments were not then due.
E. INVENTORIES
Inventories consisted of the following at December 31, 2009 and 2008 (in thousands):
2009
2008
Raw materials
$
14,592
$
22,067
Work in process
5,624
9,296
Finished goods
57,027
64,392
$
77,243
$
95,755
At December 31, 2009 and 2008, the finished goods inventory included inventory at customer locations of $10.6 million
and $18.1 million, respectively, associated with products shipped to customers for which revenues had not yet been
recognized.