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SUPPORTSOFT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 1. Organization and Summary of Significant Accounting Policies (Continued)
For the Year Ended December 31, 2005
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair Value
Cash $ 8,257 $ — $ — $ 8,257
Money market fund 625 — — 625
Commercial paper 16,725 — (3) 16,722
Federal agencies 1,000 — — 1,000
Corporate bonds 22,773 — (114) 22,659
Auction rate securities 71,400 — — 71,400
$ 120,780 $ — $ (117) $ 120,663
Classified as:
Cash and cash equivalents $ 23,345 $ — $ (3) $ 23,342
Marketable securities 97,435 — (114) 97,321
$ 120,780 $ — $ (117) $ 120,663
The following table summarizes the estimated fair value of our available−for−sale debt securities held in marketable securities
classified by the stated maturity date of the security (in thousands):
December 31,
2006 2005
Due within one year $ 51,103 $ 56,371
Due within two years 4,769 —
Due within three years — —
Due after three years 48,650 40,950
$ 104,522 $ 97,321
Although SupportSoft’s investment portfolio in auction rate securities includes investments maturing after 3 years, these
investments are highly liquid and typically reset between 28 and 90 days and are therefore classified in marketable securities.
Property and Equipment
Property and equipment is stated at cost, less accumulated depreciation which is determined using the straight−line method over
the estimated useful lives of 2 years for computer equipment and software, 3 years for furniture and fixtures, and the shorter of the
estimated useful lives or the lease term for leasehold improvements.
Goodwill
Goodwill resulted from the Company’s acquisition of Core Networks on September 2, 2004. The Company applies the provisions
of Statement of Financial Accounting Standards (“SFAS”) No. 142, “Goodwill and Other Intangibles Assets,” which prohibits the
amortization of goodwill.
50
Source: SUPPORTSOFT INC, 10−K, March 16, 2007