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65
In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements –
an amendment of ARB No. 51. SFAS No. 160 establishes new accounting and reporting standards for the
noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. Specifically, this statement requires
that a noncontrolling interest, or minority interest, be recognized as equity in the consolidated financial statements and
that it be presented separately from the parent’s equity. Also, the amounts of net income attributable to the parent and
to the noncontrolling interest must be included in consolidated net income on the face of the income statement. SFAS
No. 160 clarifies that changes in a parent’s ownership interest in a subsidiary are equity transactions if the parent
retains its controlling financial interest. In addition, this statement requires that a parent recognize a gain or loss in net
income when a subsidiary is deconsolidated, with such gain or loss measured using the fair value of the noncontrolling
equity investment on the deconsolidation date. SFAS No. 160 is effective for the Company’s fiscal year beginning
January 1, 2009 and requires retroactive adoption of the presentation and disclosure requirements for existing minority
interests; all other requirements may only be applied prospectively. Adoption of SFAS No. 160 is not expected to
have a material impact on the Company’s financial position or results of operations.
C. MARKETABLE SECURITIES
The cost (amortized cost of debt instruments) and fair value of marketable securities as of December 31, 2008 and
2007 were as follows (in thousands):
Cost
Net
Unrealized
Gains (Losses)
Fair Value
2008
Certificates of deposit $ 6,255 $ 8 $ 6,263
Commercial paper 13,474 14 13,488
Asset-backed securities 2,224 (73 ) 2,151
Agency bonds 1,000 — 1,000
Agency discount notes 2,994 6 3,000
$ 25,947 $ (45 ) $ 25,902
2007
Corporate obligations $ 5,101 $ (2 ) $ 5,099
Certificates of deposit 1,000 — 1,000
Commercial paper 2,982 — 2,982
Asset-backed securities 6,802 (42 ) 6,760
$ 15,885 $ (44 ) $ 15,841
All fixed income securities held at December 31, 2008 and 2007 had an effective maturity of less than one year. All
income generated from these investments has been recorded as interest income. The Company calculates realized
gains and losses on a specific identification basis. Realized gains and losses from the sale of marketable securities
were not material for the years ended December 31, 2008, 2007 and 2006.
As of December 31, 2008, there were no securities whose unrealized losses were deemed by the Company to be other-
than-temporary impairments. The primary factors the Company considers in classifying an impairment as temporary
or other-than-temporary include the extent and the time the fair value of an investment has been below cost, the
expected holding and recovery period for each investment, and the Company’s intent and ability to hold each
investment until recovery.