Netgear 2009 Annual Report Download - page 96

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Table of Contents
applies to all financial assets and financial liabilities that are being measured and reported on a fair value basis. Although there was no impact for
adoption of this authoritative guidance to the consolidated financial statements, the Company is now required to provide additional disclosures as
part of its financial statements. In accordance with additional authoritative guidance, the Company deferred adoption until January 1, 2009 as it
relates to non-financial assets and liabilities except those measured at fair value in the financial statements on a recurring basis. The updated
guidance establishes a framework for measuring fair value and expands disclosure about fair value measurements. The statement requires fair
value measurements be classified and disclosed in one of the following three categories:
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or
liabilities;
Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full
term of the asset or liability;
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e.,
supported by little or no market activity).
The following tables summarize the valuation of the Company’s financial instruments by the above categories as of December 31, 2009
and December 31, 2008:
94
As of December 31, 2009
Total
Quoted market
prices in active
markets
(Level 1)
Significant other
observable inputs
(Level 2)
Significant
unobservable inputs
(Level 3)
Cash equivalents
—
money market funds
$
120,324
$
120,324
$
—
$
—
Available
-
for
-
sale securities
—
Treasuries(1)
74,898
74,898
—
—
Foreign currency forward contracts(2)
1,329
—
1,329
—
Total
$
196,551
$
195,222
$
1,329
$
—
(1)
Included in short
-
term investments on the Company
’
s consolidated balance sheet.
(2)
Included in prepaid expenses and other current assets on the Company
’
s consolidated balance sheet.
As of December 31, 2009
Total
Quoted market
prices in active
markets
(Level 1)
Significant other
observable inputs
(Level 2)
Significant
unobservable inputs
(Level 3)
Foreign currency forward contracts(3)
$
(348
)
$
—
$
(
348
)
$
—
Total
$
(348
)
$
—
$
(
348
)
$
—
(3)
Included in other accrued liabilities on the Company
’
s consolidated balance sheet.
As of December 31, 2008
Total
Quoted market
prices in active
markets
(Level 1)
Significant other
observable inputs
(Level 2)
Significant
unobservable inputs
(Level 3)
Cash equivalents
—
money market funds
$
122,232
$
122,232
$
—
$
—
Available
-
for
-
sale securities
—
Treasuries(1)
10,170
10,170
—
—
Foreign currency forward contracts(2)
1,494
—
1,494
—
Total
$
133,896
$
132,402
$
1,494
$
—
(1)
Included in short
-
term investments on the Company
’
s consolidated balance sheet.
(2)
Included in prepaid expenses and other current assets on the Company
’
s consolidated balance sheet.