Vonage 2008 Annual Report Download - page 73

V
O
NA
G
EH
O
LDIN
GS CO
RP
.
N
O
TE
S
T
OCO
N
SO
LIDATED FINAN
C
IAL
S
TATEMENT
S
—
(C
ontinued
)
(
In thousands, except per share amounts
)
In February 2008, the FA
S
B issued FA
S
BF
S
P 157-2,
which dela
y
ed the effective date of
S
FA
S
No. 157 for all
non
f
inancial assets and non
f
inancial liabilities, except
t
hose that are recognized or disclosed at fair value in the
financial statements on a recurrin
g
basis
(
at leas
t
annually), until fiscal years be
g
innin
g
after November 15
,
2
008, and interim periods within those fiscal years. Thes
e
n
o
nfin
a
n
c
i
a
lit
e
m
s
in
c
l
ude asse
t
sa
n
d
li
ab
iliti
es suc
h
as
r
eportin
g
units measured at
f
air value in a
g
oodwil
l
im
p
airment test and non
f
inancial assets ac
q
uired an
d
li
ab
iliti
es assu
m
ed
in
a bus
in
ess co
m
b
in
a
ti
o
n. Eff
ec
tiv
e
J
anuar
y
1, 2008, we adopted SFAS No. 157 for financia
l
assets and liabilities recognized at
f
air value on a recurring
basis. The
p
artial ado
p
tion of
S
FA
S
No. 157 for financia
l
assets and liabilities did not have a material impact on ou
r
consolidated
f
inancial
p
osition, results o
f
o
p
erations or
cas
hfl
o
w
s
.
I
n February 2007, the FASB issued Statement o
f
Financial Accountin
gS
tandards No. 159
(
“
S
FA
S
No.
1
59”), “The Fair Value Option for Financial Assets and
Financial Liabilities
.
”
Under SFAS No. 159, com
p
anie
s
m
ay elect to measure certain financial instruments an
d
certain other items at
f
air value. The standard require
s
t
hat unrealized gains and losses on items
f
or which the
f
air value option has been elected be reported in earnin
g
s.
SFAS No. 159 was effective for us be
g
innin
g
in the firs
t
quarter o
f
2008. We currently do not have any instrument
s
eligible for election of the fair value option. Therefore, the
adoption of SFAS No. 159 in the first quarter of 2008 did
n
ot impact our consolidated
f
inancial position, results o
f
o
p
erations or cash flows
.
N
ote 2
.
C
ash,
C
ash Equivalents and Marketable
S
ecurities
C
ash, cash equivalents and marketable securities consist of the followin
g:
D
ecem
b
er
3
1
,
2008 2007
C
ash and cash equivalent
s
$
46
,
134 $ 71
,
542
Ma
rk
e
t
ab
l
e secu
riti
es
:
Res
tri
c
t
ed cash
–
5
4
6
U.
S
. corporate bond
s
–28
,
59
9
A
uct
i
on rate secur
i
t
i
es –40
,
35
0
C
ertificate of deposits –
4,991
U.
S
. government notes –5
,4
5
6
T
ota
l
mar
k
eta
bl
e secur
i
t
i
e
s
–7
9,942
T
otal cash, cash equivalents and marketable securities $46,134 $151,484
S
ince all of our marketable securities were converte
d
t
o cas
hi
n 2008, t
h
ere was no unrea
li
ze
dg
a
i
nor
l
oss a
t
D
ecember 31, 2008. We had a
g
ross unrealized
g
ain of
$1
at
D
ecem
b
er 31, 2007.
Th
ere was a gross unrea
li
ze
dl
oss
of $1 and a
g
ross unrealized loss of $13 for the year
ended December 31, 2008 and 2007, respectivel
y
.
N
o
t
e3.
P
ro
p
ert
y
and E
q
ui
p
ment
D
ecem
b
er
3
1
,
2008 2007
Building (under capital lease)
$
25
,
709 $ 25
,
70
9
N
etwor
k
equ
i
pment an
d
computer
h
ar
d
war
e
104,888 99,0
7
5
Leased e
q
ui
p
ment –
3
7
1
Leasehold im
p
rovements
42
,
12
5
41
,7
45
F
u
rnit
u
r
e
10,887 11,700
V
e
hi
c
l
es
3
1
630
4
Display
s
2
6
2
330
184,187 179,234
Less: accumulated depreciation and amortization
(
85,895
)(
60,568
)
N
et propert
y
an
d
equ
i
pmen
t
$
98
,
292
$
118
,
66
6
F-1
3