NetZero 2011 Annual Report Download - page 137

Download and view the complete annual report

Please find page 137 of the 2011 NetZero 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 172

  • 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
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172

Table of Contents
UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
6. DERIVATIVE INSTRUMENTS (Continued)
At December 31, 2011, the effective portion of our cash flow hedging instruments before tax effect was $(0.2) million, all of which is
expected to be reclassified from accumulated other comprehensive loss to technology and development expenses within the next 12 months.
The effect of derivative instruments not designated as hedging instruments was as follows (in thousands):
7. FAIR VALUE MEASUREMENTS
The following table presents information about assets at December 31, 2011 that were required to be measured at fair value on a recurring
basis (in thousands):
F-29
Losses Recognized
in Earnings on
Derivatives (Amount
Excluded from
Effectiveness
Testing)
Year Ended
December 31,
Derivatives Designated as Cash Flow Hedging Instruments
Location
2011
2010
2009
Forward foreign currency exchange contracts
Other income,
net
$
(52
)
$
—
$
—
Losses Reclassified
from Accumulated
Other
Comprehensive
Loss into Earnings
(Effective Portion)
Year Ended
December 31,
Derivatives Designated as Cash Flow Hedging Instruments
Location
2011
2010
2009
Forward foreign currency exchange contracts
Technology
and
development
expenses
$
—
$
—
$
—
Gains Recognized in Earnings on
Derivatives
Year Ended December 31,
Derivatives Not Designated as Hedging Instruments
Location
2011
2010
2009
Forward foreign currency exchange contracts
Other income, net
$
654
$
—
$
—
Description Total Fair Value Level 1 Fair Value Level 2 Fair Value
Money market funds
$
89,770
$
89,770
$
—
Derivative assets
372
—
372
Derivative liabilities
(240
)
—
(
240
)
$
89,902
$
89,770
$
132