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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, 2006
Amortized Cost
Gross Unrealized
Gains
Gross Unrealized
Losses
Fair Value
Cash $ 2,372 $ — $ — $ 2,372
Money market fund 22 — — 22
Commercial paper 35,390 — (30) 35,360
Federal agencies 2,000 — (1) 1,999
Corporate bonds 31,511 — (23) 31,488
Auction rate securities 48,650 — — 48,650
$ 119,945 $ — $ (54) $ 119,891
Classified as:
Cash and cash equivalents $ 15,372 $ — $ (3) $ 15,369
Marketable securities 104,573 — (51) 104,522
$ 119,945 $ — $ (54) $ 119,891
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,
2007
2006
Due within one year $ 58,165 $ 51,103
Due within two years 2,999 4,769
Due after three years 38,850 48,650
$ 100,014 $ 104,522
The gross unrealized losses related to the Company's portfolio of available-for-sale securities were primarily due to a decrease in the fair value of debt
securities as result of an increase in interest rates during 2007. The Company has determined that the gross unrealized losses on its available-for-sale securities as
of December 31, 2007 are temporary in nature. The Company has reviewed its investment portfolio to identify and evaluate investments that have indications of
possible impairment. Factors considered in determining whether a loss is temporary include the magnitude of the decline in market value, the length of time the
market value has been below cost (or adjusted cost), credit quality, and the Company's ability and intent to hold the securities for a period of time sufficient to
allow for any anticipated recovery in market value.
56
Source: SUPPORTSOFT INC, 10-K, March 13, 2008