Support.com 2007 Annual Report Download - page 59

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SUPPORTSOFT, INC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 1. Organization and Summary of Significant Accounting Policies (Continued)
Cash, Cash Equivalents and Marketable Securities
All liquid instruments with an original maturity at the date of purchase of ninety days or less to be cash equivalents. Cash equivalents and marketable
securities consist primarily of money market funds, commercial paper, auction rate securities, corporate bonds and notes and treasury bills issued by the United
States government and its agencies. Our cash equivalents and marketable securities are classified as available-for-sale, and are reported at fair value with
unrealized gains and losses included in accumulated other comprehensive income within stockholders' equity on the consolidated balance sheets. Realized gains
and losses and declines in value judged to be other than temporary on available-for-sale securities are included in other income (expense), net in the consolidated
statements of operations. SupportSoft recorded net unrealized gains (losses) on available-for-sale securities of $21,000 and ($54,000) as of December 31, 2007
and 2006, respectively. Realized gains and losses are recorded using the specific identification method and were immaterial during the years ending
December 31, 2007, 2006, and 2005.
We monitor our investments for impairment on a quarterly basis and determine whether a decline in fair value is other-than-temporary by considering
factors such as current economic and market conditions, the credit rating of the security's issuer, the length of time an investment's fair value has been below our
carrying value, and our ability and intent to hold investments to maturity. If an investment's decline in fair value is deemed to be other-than-temporary, we reduce
its carrying value to its estimated fair value, as determined based on quoted market prices or liquidation values. Declines in value judged to be
other-than-temporary, if any, are recorded in operations as incurred.
The following is a summary of available-for-sale securities (in thousands):
For the Year Ended December 31, 2007
Amortized Cost
Gross Unrealized
Gains
Gross Unrealized
Losses
Fair Value
Cash $ 3,298 $ — $ — $ 3,298
Money market fund 5,651 — — 5,651
Commercial paper 28,300 18 (1) 28,317
Federal agencies 6,999 3 — 7,002
Corporate bonds 29,821 16 (15) 29,822
Auction rate securities 38,850 — — 38,850
$ 112,919 $ 37 $ (16) $ 112,940
Classified as:
Cash and cash equivalents $ 12,926 $ — $ — $ 12,926
Marketable securities 99,993 37 (16) 100,014
$ 112,919 $ 37 $ (16) $ 112,940
55
Source: SUPPORTSOFT INC, 10-K, March 13, 2008