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33
32
accounting in accordance with APB 16. The initial purchase price of the acquisition was
approximately $31.0 million cash, plus additional contingency payments of up to $8.0 million
based on achieving certain technical and employment milestones. We determined that
certain milestones had been reached as of March 5, 1999, and as such, $4.0 million in
contingent payments were recorded as additional purchase price and paid throughout
fiscal 1999. Approximately $11.4 million of the purchase price was allocated to the devel-
oped technology, and the remaining $23.6 million was allocated to trademark, the value of
the assembled workforce, and goodwill.
NOTE 3. CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS
Cash, cash equivalents, and short-term investments consisted of the following:
UNREALIZED UNREALIZED ESTIMATED
AS OF DECEMBER 1, 2000 COST GAINS LOSSES FAIR VALUE
Classified as current assets:
Cash $ 11,997 $ — $ — $ 11,997
Cash equivalents:
Money market mutual funds 198,629 — — 198,629
State and municipal bonds and notes 26,240 — — 26,240
Total cash equivalents 224,869 — — 224,869
Total cash and cash equivalents 236,866 — — 236,866
Short-term investments:
State and municipal bonds 340,091 536 (589) 340,038
Other marketable equity securities,
including equity hedging instruments 92,527 31,629 (23,211) 100,945
Corporate notes 1,994 10 — 2,004
Total short-term investments 434,612 32,175 (23,800) 442,987
Total cash, cash equivalents,
and short-term investments $ 671,478 $ 32,175 $ (23,800) $ 679,853
UNREALIZED UNREALIZED ESTIMATED
AS OF DECEMBER 3, 1999 COST GAINS LOSSES FAIR VALUE
Classified as current assets:
Cash $ 42,452 $ — $ — $ 42,452
Cash equivalents:
Money market mutual funds 52,135 — — 52,135
Time deposit 5,000 — — 5,000
State and municipal bonds and notes 66,575 — — 66,575
United States government agency notes 4,983 — — 4,983
Total cash equivalents 128,693 — — 128,693
Total cash and cash equivalents 171,145 — — 171,145
Short-term investments:
State and municipal bonds 198,284 441 (666) 198,059
Other marketable equity securities 46,694 83,817 (999) 129,512
Total short-term investments 244,978 84,258 (1,665) 327,571
Total cash, cash equivalents,
and short-term investments $ 416,123 $ 84,258 $ (1,665) $ 498,716
Approximately $224.9 million and $128.7 million in investments are classified as cash
equivalents as of December 1, 2000 and December 3, 1999, respectively. We included
unrealized gains (losses) on securities, net of taxes, in accumulated other comprehensive
income, which is a separate component of stockholders’ equity, and totaled $5.1 million
and $43.6 million as of December 1, 2000 and December 3, 1999, respectively. We
included net realized gains from the sale of short-term equity investments for the years
ended December 1, 2000 and December 3, 1999 of $12.7 million and $59.4 million,
respectively, in nonoperating income.