Support.com 2011 Annual Report Download - page 51

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We generally provide a refund period on sales, during which refunds may be granted to consumers under certain circumstances, including our
inability to resolve certain support issues. For our channel sales, the refund period varies by channel partner, but is generally between five and 10
days. For referral programs and direct transactions, the refund period is generally five days. For all sales channels, we recognize revenue net of
refunds and cancellations during the period. Refunds and cancellations have not been material.
We generally agree to indemnify our customers against legal claims that our software products infringe certain third-party intellectual property
rights. As of December 31, 2011 and 2010, we have not been required to make any payment resulting from infringement claims asserted against our
customers and have not recorded any related accruals.

ASC 820,  defines fair value, establishes a framework for measuring fair value under generally
accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price
that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in
an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value ASC 820 must maximize
the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of
inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following:
• Level 1 - Quoted prices in active markets for identical assets or liabilities.
• Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities;
quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for
substantially the full term of the assets or liabilities.
• Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or
liabilities.
In accordance with ASC 820, the following table represents our fair value hierarchy for our financial assets (cash equivalents and investments)
measured at fair value on a recurring basis as of December 31, 2011 and 2010 (in thousands):
    
Money market funds $ 15,698 $ — $ — $ 15,698
Certificates of deposits 480 — — 480
Commercial paper — 6,289 — 6,289
Corporate bonds — 13,713 — 13,713
Corporate notes — 1,555 — 1,555
U.S. government agency securities — 7,706 — 7,706
Auction-rate securities — — 1,111 1,111
Total $ 16,178 $ 29,263 $ 1,111 $ 46,552
    
Money market funds $ 14,221 $ — $ — $ 14,221
Commercial paper — 6,990 — 6,990
Corporate bonds — 22,012 — 22,012
Corporate notes — 21,008 — 21,008
Treasuries — 4,997 — 4,997
Auction-rate securities — — 2,667 2,667
Total $ 14,221 $ 55,007 $ 2,667 $ 71,895
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