ServiceMagic 2011 Annual Report Download - page 89

Download and view the complete annual report

Please find page 89 of the 2011 ServiceMagic annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 7—MARKETABLE SECURITIES (Continued)
The following table summarizes investments in marketable debt securities (twelve in total at December 31, 2011) that have been in a
continuous unrealized loss position for less than twelve months:
At December 31, 2011 and 2010, there are no investments in marketable securities that have been in a continuous unrealized loss position
for twelve months or longer.
Substantially all of the Company's marketable debt securities are rated investment grade. The gross unrealized losses on the marketable debt
securities relate to changes in interest rates. Because the Company does not intend to sell any marketable debt securities and it is not more likely
than not that the Company will be required to sell any marketable debt securities before recovery of their amortized cost bases, which may be
maturity, the Company does not consider any of its marketable debt securities to be other-than-temporarily impaired at December 31, 2011.
The following table presents the proceeds from maturities and sales of available-for-
sale marketable securities and the related gross realized
gains and losses:
Gross realized gains and losses from the maturities and sales of available-for-sale marketable securities are included in "Other income
(expense), net" in the accompanying consolidated statement of operations.
Unrealized gains, net of tax, reclassified out of accumulated other comprehensive income into other income (expense), net related to the
maturities and sales of available-for-sale securities for the years ended December 31, 2011, 2010 and 2009 were $2.8 million, $3.2 million and
$0.7 million, respectively.
Investment in ARO
As part of the consideration for the sale of HSE to ARO on June 19, 2007, IAC received approximately 5.5 million shares of ARO stock
plus additional consideration in the form of a contingent value right ("CVR") (See Note 9 for additional information on the CVR). During 2009,
the Company sold its 5.5 million shares of ARO stock, resulting in a pre-tax loss of $12.3 million, which is included in the gross realized losses
for the year ended December 31, 2009 disclosed above. Prior to the sale of its last 1.1 million shares of ARO stock, the Company concluded that
the decline in the stock price of these remaining shares was other-than-temporary, due in part, to ARO's insolvency filing on June 9, 2009, and
recorded impairment charges totaling $4.6 million.
83
December 31,
2011 2010
(In thousands)
Fair
Value
Gross
Unrealized
Losses Fair
Value
Gross
Unrealized
Losses
Corporate debt securities
$
12,920
$
(15
)
$
34,552
$
(16
)
States of the U.S. and state political subdivisions
11,711
(22
)
39,171
(230
)
Total
$
24,631
$
(37
)
$
73,723
$
(246
)
December 31,
2011
2010
2009
(In thousands)
Proceeds from maturities and sales of available
-
for
-
sale marketable securities
$
600,149
$
768,650
$
293,629
Gross realized gains
2,482
4,802
42,372
Gross realized losses
(41
)
(19
)
(12,414
)