TeleNav 2015 Annual Report Download - page 93

Table of Contents TELENAV, INC.
Notes to Consolidated Financial Statements—(Continued)
Foreign currency
The functional currency of our foreign subsidiaries is the local currency. Adjustments resulting from translating foreign functional
currency financial statements into U.S. dollars are recorded as part of a separate component of comprehensive income in stockholders’ equity.
Foreign currency transaction gains and losses are included in our net income for each year. All assets and liabilities denominated in a foreign
currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenue and expenses are translated at the average
monthly exchange rates during the year. Equity transactions are translated using historical exchange rates. Foreign currency transaction gains
(losses) were $1.6 million , $(203,000) and $(251,000) in fiscal 2015 , 2014 and 2013 , respectively. The foreign currency transaction gains of
$1.6 million in fiscal 2015 were primarily driven by mark-to-market adjustment of intercompany balances.
Accumulated other comprehensive income (loss), net of tax
The components of accumulated other comprehensive income (loss), net of related taxes, were as follows (in thousands):
The amount reclassified from accumulated other comprehensive income (loss), net of tax, was determined using the specific identification
method and the amount was included in other income, net, for fiscal 2015 and 2014, respectively.
The amount of income tax benefit allocated to each component of accumulated other comprehensive income (loss) was not material for
fiscal 2015 and 2014.
Cash equivalents and short-term investments
Cash equivalents consist of highly liquid fixed-income investments with original maturities of three months or less at the time of purchase,
including money market funds. Short-term investments consist of readily marketable securities with a remaining maturity of more than three
months from time of purchase. We classify all of our cash equivalents and short-term investments as “available-for-sale,” as these investments
are free of trading restrictions. We may or may not hold securities with stated maturities greater than 12 months until maturity. After
consideration of our risk versus reward objectives, as well as our liquidity requirements, we may sell these securities prior to their stated
maturities. As we view these securities as available to support current operations, we classify securities with maturities beyond 12 months as
current assets under the caption short-
term investments in the accompanying consolidated balance sheets. These marketable securities are carried
at fair value, with the unrealized gains and losses, net of tax, reported as accumulated other comprehensive income and included as a separate
component of stockholders’ equity. Gains and losses are recognized when realized. When we have determined that an other-than-temporary
decline in fair value has occurred, the amount of the decline that is related to a credit loss is recognized in earnings. Gains and losses are
determined using the specific identification method. Our net realized gains were $236,000 , $164,000 and $152,000 in fiscal 2015 , 2014 and
2013 , respectively.
F-11
Foreign
Currency
Translation
Adjustments
Unrealized
Gains (Losses) on
Available-
for-Sale
Securities
Total
Balance, net of tax as of June 30, 2013
$
270
$
103
$
373
Other comprehensive income (loss) before reclassifications, net of tax
51
284
335
Amount reclassified from accumulated other comprehensive income (loss), net of tax
—
(
132
)
(132
)
Other comprehensive income (loss), net of tax
51
152
203
Balance, net of tax as of June 30, 2014
$
321
$
255
$
576
Other comprehensive income (loss) before reclassifications, net of tax
(1,698
)
(156
)
(1,854
)
Amount reclassified from accumulated other comprehensive income (loss), net of tax
—
(
262
)
(262
)
Other comprehensive income (loss), net of tax
(1,698
)
(418
)
(2,116
)
Balance, net of tax as of June 30, 2015
$
(1,377
)
$
(163
)
$
(1,540
)