3Ware 2001 Annual Report Download - page 30

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2 8
N O T E S T O C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S
1.S U M M A R Y O F S I G N I F I C A N T A C C O U N T I N G P O L I C I E S
B U S I N E S S
The Company designs, develops, manufactures and markets high-performance, high-bandwidth silicon solutions for
the world’s optical networks.
B A S I S O F P R E S E N TAT I O N
On September 9, 1999, March 23, 2000 and October 30, 2000, the Company effected two-for-one stock splits
(in the form of 100% stock dividends); accordingly, all prior share, per share, common stock and stock option
amounts in these financial statements have been restated to reflect the stock splits.
The consolidated financial statements include all the accounts of the Company and its wholly owned subsidiaries.
All significant intercompany balances and transactions have been eliminated in consolidation.
C A S H, C A S H E Q U I VA L E N T S A N D S H O RT-T E R M I N V E S T M E N T S
Cash and cash equivalents consist of money market type funds and highly liquid debt instruments with original
maturities of three months or less at the date of acquisition. Short-term investments consist of U.S. Treasury notes,
obligations of U.S. government agencies, State, Municipal and County governments notes and bonds and corporate
bonds. The Company maintains its excess cash in financial institutions with strong credit ratings and has not
experienced any significant losses on its investments.
The Company classifies its short-term investments as “Available-for-Sale” and records such assets at the estimated fair
value with unrealized gains and losses excluded from earnings and reported, net of tax, in comprehensive income
(loss). The basis for computing realized gains or losses is by specific identification.
The following is a summary of available-for-sale securities (in thousands):
Amortized Gross Unrealized Estimated
At March 31, 2001: Cost Gains Losses Fair Value
U.S. Treasury securities and obligations
of U.S. government agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,984 $ 109 $ 5 $ 27,088
State, Municipal and County government notes and bonds . . . . . . . 388,689 1,510 — 390,199
Corporate debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 654,418 2,304 113 656,609
$1,070,091 $3,923 $118 $1,073,896
At March 31, 2000:
U.S. Treasury securities and obligations
of U.S. government agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,942 $ — $118 $ 25,824
State, Municipal and County government notes and bonds . . . . . . . 397,645 30 14 397,661
Corporate debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361,132 26 194 360,964
$ 784,719 $ 56 $326 $ 784,449
Available-for-sale securities by contractual maturity are as follows:
(in thousands) March 31, 2001
Due in one year or less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 860,737
Due after one year through two years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146,269
Greater than two years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,890
$1,073,896