Classmates.com 2004 Annual Report Download - page 92

Download and view the complete annual report

Please find page 92 of the 2004 Classmates.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 134

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134

The Company has reclassified certain Auction Rate securities from cash and cash equivalents to short-term investments. Auction Rate
securities are variable rate bonds tied to short-term interest rates with maturities on the face of the securities in excess of 90 days. Auction Rate
securities have interest rate resets through a modified Dutch auction, at predetermined short-term intervals, usually every 7, 28 or 35 days. They
are traded at par and the interest paid during a given period is based upon the interest rate determined during the prior auction. Although these
securities are issued and rated as long-term bonds, they are priced and traded as short-term instruments due to the liquidity provided through the
interest rate reset. The Company has historically classified these instruments as cash and cash equivalents if the period between interest rate
resets was 90 days or less. Based on the Company's re-evaluation of the maturity dates associated with the underlying bonds, the Company has
reclassified its Auction Rate securities, previously classified as cash equivalents, as short-term investments on its consolidated balance sheet at
December 31, 2003. In addition, certain amounts were reclassified in the consolidated statements of cash flows for the six months ended
December 31, 2003 and the years ended June 30, 2003 and 2002.
Short-term investments, prior to the reclassification, consisted of the following (in thousands):
Gross unrealized gains and losses are presented net of tax in accumulated other comprehensive income (loss) on the consolidated balance
sheets. The Company recognized $0.1 million of realized gains from the sale of short-term investments in the year ended December 31, 2004.
The Company had no material realized gains or losses from the sale of short-term investments in the six months ended December 31, 2003 and
the years ended June 30, 2003 and 2002.
Maturities of short-term investments were as follows (in thousands):
F-23
December 31, 2003
(prior to reclass)
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
U.S. corporate notes
$
39,321
$
917
$
(5
)
$
40,233
Government agencies
91,083
1,183
(10
)
92,256
Total
$
130,404
$
2,100
$
(15
)
$
132,489
December 31, 2004
Amortized Cost
Estimated Fair
Value
Maturing within 1 year
$
29,159
$
29,158
Maturing between 1 year and 4 years
62,854
62,832
Maturing after 4 years
84,292
84,291
Total
$
176,305
$
176,281
December 31, 2003
December 31, 2003
(prior to reclass)
Amortized
Cost
Estimated
Fair Value
Amortized
Cost
Estimated
Fair Value
Maturing within 1 year
$
41,581
$
41,861
$
41,581
$
41,861
Maturing between 1 year and 4 years
88,823
90,628
88,823
90,628
Maturing after 4 years
62,323
62,326
—
—
Total
$
192,727
$
194,815
$
130,404
$
132,489