Clearwire 2007 Annual Report Download - page 86

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5. Investments
Investments as of December 31, 2007 and 2006 consist of the following (in thousands):
Cost Gains Losses Fair Value Cost Gains Losses Fair Value
Gross Unrealized Gross Unrealized
December 31, 2007 December 31, 2006
Short-term
Commercial paper . ...... $ 7,500 $— $ — $ 7,500 $ 90,232 $— $ — $ 90,232
Corporate bonds ........ 7,970 15 — 7,985 226,316 15 (85) 226,246
US Government and
Agency Issues ........ 51,544 3 (20) 51,527 64,270 21 (26) 64,265
Municipal bonds ........ — — — — 91,975 — — 91,975
Auction rate securities .... — — — — 116,575 — — 116,575
Other securities ......... — — — — 74,351 — — 74,351
Total .............. $67,014 $18 $ (20) $67,012 $663,719 $36 $(111) $663,644
Long-term
Auction rate securities .... 95,922 — (7,290) 88,632 — — — —
Total .............. $95,922 $— $(7,290) $88,632 $ — $— $ — $ —
Marketable debt and equity securities that are available for current operations are classified as short-term
available-for-sale investments, and are stated at fair value. Auction rate securities without readily determinable
market values are classified as long-term available-for-sale investments and are stated at fair value. Unrealized
gains and losses are recorded as a separate component of accumulated other comprehensive income (loss). Realized
losses are recognized when a decline in fair value is determined to be other-than-temporary. Realized gains and
losses are determined on the basis of the specific identification method. Gross realized losses were $5.8 million for
2007, and there were no significant realized losses in 2006 or 2005. There were no significant gains in 2007, 2006,
or 2005.
The cost and fair value of investments at December 31, 2007, by contractual years-to-maturity, are presented
below (in thousands):
Cost Fair Value
Due within one year .......................................... $ 67,014 $ 67,012
Due ten years or greater........................................ 41,280 33,990
No contractual maturites ....................................... 54,642 54,642
Total .................................................... $162,936 $155,644
The following table summarizes investments that have unrealized losses as of December 31, 2007 (in
thousands):
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Less Than
12 Months
Greater Than
12 Months Total
US Government and Agency Issues ........ $49,328 $ (20) $— $— $49,328 $ (20)
Auction rate securities .................. 29,160 (7,290) — — 29,160 (7,290)
$78,488 $(7,310) $— $— $78,488 $(7,310)
78
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)