THQ 2005 Annual Report Download - page 83

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60
zero. As of March 31, 2005, our available-for-sale debt securities have stated maturities ranging from 8 to
34 years. Our held-to-maturity debt securities have maturities less than one year.
Short-term investments and long-term marketable securities at March 31, 2005 and 2004were as follows
(in thousands):
March 31, 2005March 31, 2004
Amortized
Costs
Gross
Unrealized
Costs
Gross
Unrealized
Losses
Fair
Value
Amortized
Costs
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
A
vailable-for-sale
(current):
Corporate notes and
bonds............ $23,200 $ —$ — $23,200 $53,600 $ —$ — $53,600
Municipal securities. 186,178 — — 186,178 112,395 — — 112,395
Total
available-for-sale
investments. ...... $ 209,378 $— $— $ 209,378$ 1 65,995 $— $ —$ 1 65,995
Held-to-maturity
(current):
Corporate debt
securities......... $ — $ — $ — $ — $ 4,800$ — $ — $ 4,800
Municipal securities. 23,620 — — 23,620 1,002 — — 1,002
Total current held-to-
maturity
investments. ...... $23,620 $ —$ — $23,620 $5,802 $ —$ — $5,802
Held-to-maturity
(long-term):
Municipal securities .$ — $ — $ — $ — $ 24,320 $ — $ — $ 24,320
Total long-term
held-to-maturity
investments. ...... $—$ —$ — $—$24,320 $ —$ — $24,320
Financial Instruments. The carrying value of certain financial instruments, including cash and cash
equivalents, short-term investments held to maturity, accounts receivable, accounts payable, accrued
expenses andaccrued royalties, approximate fair market value based on their short-term nature. Short-
term investments classified as available for sale are stated at fair value.
We account for our derivative and hedging activities under SFAS No. 133, “Accounting for Derivative
Instruments and Hedging Activities,” as amended. The assets or liabilities associated with our derivative
instruments and hedging activities are recorded at fair value in other current assets or liabilities,
respectively, on our consolidated balance sheets. As discussed below, gains and losses resulting from
changes in fair value are accounted for depending on the use of the derivative and whether it is designated
and qualifies for hedge accounting.
We utilize forward contracts in order to reduce financial market risks. These instruments are used to hedge
foreign currency exposures of underlying assets, liabilities, or certain forecasted foreign currency
denominated transactions. Our accounting policies for these instruments are based on whether they meet
the criteria for designation as hedging transactions. Changes in fair value of derivatives that are designated
as cash flow hedges, are highly effective, and qualify as hedging instruments, are recorded in other
comprehensive income until the underlying hedged item is recognized in earnings within the financial