NetFlix 2008 Annual Report Download - page 63

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NETFLIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
2. Short-term Investments
Short-term investments were classified as available-for-sale securities and are reported at fair value as
follows:
December 31, 2008
Gross
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
(in thousands)
Corporate debt securities ..................... $ 45,482 $ 440 $ (727) $ 45,195
Government and agency securities ............. 92,378 1,812 (244) 93,946
Asset and mortgage backed securities ........... 19,446 15 (1,212) 18,249
$157,306 $2,267 $(2,183) $157,390
December 31, 2007
Gross
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
(in thousands)
Corporate debt securities ..................... $ 36,445 $ 315 $ (85) $ 36,675
Government and agency securities ............. 130,884 2,155 (33) 133,006
Asset and mortgage backed securities ........... 37,842 307 (127) 38,022
$205,171 $2,777 $ (245) $207,703
The following table shows the gross unrealized losses and fair value of the Company’s investments with
unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category
and length of time that individual securities have been in a continuous unrealized loss position at December 31,
2008:
Less Than
12 Months
12 Months
or Greater Total
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
(in thousands)
Corporate debt securities .................. $22,806 $ (692) $1,316 $ (35) $24,122 $ (727)
Government and agency securities .......... 12,128 (244) — — 12,128 (244)
Asset and mortgage backed securities ........ 15,511 (1,212) — — 15,511 (1,212)
$50,445 $(2,148) $1,316 $ (35) $51,761 $(2,183)
There were no investments which had been in a continuous loss position for more than twelve months as of
December 31, 2007.
The Company recognized gross realized gains of $4.9 million and gross realized losses of $1.8 million
during 2008 from the sales of available-for-sale securities. The Company recognized gross realized gains of $0.7
million during 2007 from the sales of available-for-sale securities. Realized gains and losses and interest income
are included in interest and other income (expense). There were no material other-than-temporary impairments
related to available-for-sale securities in 2008 or 2007.
F-14