Netgear 2012 Annual Report Download - page 72

Table of Contents NETGEAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note 3. Balance Sheet Components (in thousands)
Short-Term Investments
All of the Company’s marketable securities are classified as available-for-
sale and consist of government securities with an original maturity or
remaining maturity at the time of purchase of greater than three months and no more than 12 months . Accordingly, none of the short-
term
investments have unrealized losses greater than 12 months.
Cost Method Investments
As of December 31, 2012 and December 31, 2011 , the carrying value of the Company's cost method investments was $1.3 million and
$3.0
million respectively. These investments are included in other non-
current assets in the consolidated balance sheets and are carried at cost, adjusted for
any impairment, because the Company does not have a controlling interest and does not have the ability to exercise significant influence over these
companies. The Company monitors these investments for impairment on a quarterly basis, and adjusts carrying value for any impairment charges
recognized. There were no impairments recognized in the years ended December 31, 2012 and December 31, 2011
. Realized gains and losses on
these investments are reported in other income (expense), net in the consolidated statements of operations. In the third fiscal quarter of 2012 the
Company recognized a gain of $3.1 million on the partial sale of one of its cost method investments.
Accounts receivable, net
Inventories
The Company records provisions for excess and obsolete inventory based on forecasts of future demand. While management believes the
estimates and assumptions underlying its current forecasts are reasonable, there is risk that additional charges may be necessary if current forecasts
are greater than actual demand.
68
As of
December 31, 2012 December 31, 2011
Cost
Unrealized
Gain
Unrealized
Loss
Estimated Fair
Value
Cost
Unrealized
Gain
Unrealized
Loss
Estimated Fair
Value
U.S. Treasuries
$
225,016
$
48
$
(2
)
$
225,062
$
144,673
$
34
$
(4
)
$
144,703
Certificates of Deposits
2,783
—
—
2,783
94
—
—
94
Total
$
227,799
$
48
$
(2
)
$
227,845
$
144,767
$
34
$
(4
)
$
144,797
As of
December 31,
2012
December 31,
2011
Gross accounts receivable
$
276,084
$
279,932
Allowance for doubtful accounts
(1,256
)
(1,335
)
Allowance for sales returns
(17,031
)
(13,360
)
Allowance for price protection
(1,783
)
(3,930
)
Total allowances
(20,070
)
(18,625
)
Total accounts receivable, net
$
256,014
$
261,307
As of
December 31,
2012
December 31,
2011
Raw materials
$
4,447
$
4,676
Finished goods
170,456
159,048
Total inventories
$
174,903
$
163,724