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38
deferred the implementation date of FIN 46R to the period ending after December 15, 2003. For potential
variable interest entities that are not special-purpose entities, FIN 46R is effective for the period ending
after March 15, 2004. In accordance with FIN 46R, the assets and liabilities of CDW-L were consolidated
into our balance sheet as of December 31, 2003, and we recorded a minority interest for our partner’s 50%
interest in CDW-L. We consolidated approximately $7.8 million and $3.4 million of assets and liabilities,
respectively, from CDW-L that are classified primarily as miscellaneous receivables and accrued expenses.
Beginning on December 31, 2003, we will consolidate the future results of operations of CDW-L into our
statement of income and record a minority interest for our partner’s 50% interest in CDW-L.
In May 2003, the FASB issued Statement of Financial Accounting Standards No. 150, “Accounting for
Certain Financial Instruments with the Characteristics of Both Liabilities and Equity” (“SFAS 150”). SFAS
150 requires that certain financial instruments, which under previous guidance were accounted for as equity,
must now be accounted for as liabilities. The financial instruments affected include mandatory redeemable
stock, certain financial instruments that require or may require the issuer to buy back some of its shares in
exchange for cash or other assets and certain obligations that can be settled with shares of stock. SFAS 150
is effective for all financial instruments entered into or modified after May 31, 2003, and otherwise is
effective at the beginning of the first interim period beginning after June 15, 2003. The adoption of SFAS
150 had no impact on our 2003 consolidated financial statements.
5. Marketable Securities
The amortized cost and estimated fair values of our investments in marketable securities at December 31,
2003 and 2002 were (in thousands):
Gross
Unrealized
Estimated Holding Amortized
Security Type Fair Value Gains Losses Cost
December 31, 2003
Available-for-sale:
Municipal bonds $ 100,550 $ - $ - $ 100,550
Total available-for-sale 100,550 - - 100,550
Held-to-maturity:
U.S. Government and Government agency securities 195,507 215 - 195,292
Municipal securities 13,055 - (1) 13,056
Corporate fixed income securities 31,034 - (3) 31,037
Total held-to-maturity 239,596 215 (4) 239,385
Total marketable securities $ 340,146 $ 215 $ (4) $ 339,935
December 31, 2002
Available-for-sale:
Municipal bonds $ 124,674 $ 3 $ - $ 124,671
Total available-for-sale 124,674 3 - 124,671
Held-to-maturity:
U.S. Government and Government agency securities 193,306 675 - 192,631
Corporate fixed income securities 30,185 16 - 30,169
Total held-to-maturity 223,491 691 - 222,800
Total marketable securities $ 348,165 $ 694 $ - $ 347,471
Estimated fair values of marketable securities are based on quoted market prices. The amortized cost and
estimated fair value of our investments in marketable securities at December 31, 2003 and 2002 by
contractual maturity were (in thousands):