RED HAT INC | 2013 | FY | 3


NOTE 18—Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes the composition and fair value hierarchy of the Company’s financial assets and liabilities at February 28, 2013 (in thousands):

 

     As of
February 28,
2013
    Quoted Prices  In
Active Markets
for Identical
Assets (Level 1)
     Significant
Other
Observable
Inputs (Level 2)
    Significant
Unobservable
Inputs (Level 3)
 

Assets:

         

Money markets (1)

   $ 143,680      $ 143,680       $ —        $ —     

Available-for-sale securities (1):

         

Interest-bearing deposits

     123,518        —           123,518        —     

Commercial paper

     54,483        —           54,483        —     

U.S. agency securities

     359,993        —           359,993        —     

Corporate securities

     312,691        —           312,691        —     

Foreign government securities

     26,869        —           26,869        —     

Equity securities (1)

     274        274         —          —     

Foreign currency derivatives (2)

     280        —           280        —     

Liabilities:

         

Foreign currency derivatives (3)

     (219     —           (219     —     
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 1,021,569      $ 143,954       $ 877,615      $ —     
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1) Included in either cash and cash equivalents or investments in debt and equity securities in the Company’s Consolidated Balance Sheet at February 28, 2013 in addition to $296.9 million of cash.
(2) Included in Other current assets in the Company’s Consolidated Balance Sheet at February 28, 2013.
(3) Included in Accounts payable and accrued expenses in the Company’s Consolidated Balance Sheet at February 28, 2013.

The following table summarizes the composition and fair value hierarchy of the Company’s financial assets and liabilities at February 29, 2012 (in thousands):

 

     As of
February 29,
2012
    Quoted Prices  In
Active Markets
for Identical
Assets (Level 1)
     Significant
Other
Observable
Inputs (Level 2)
    Significant
Unobservable
Inputs (Level 3)
 

Assets:

         

Money markets (1)

   $ 322,207      $ 322,207       $ —        $ —     

Available-for-sale securities (1):

         

U.S. Treasury securities

     250        250         —          —     

Interest-bearing deposits

     445        —           445        —     

Commercial paper

     46,478        —           46,478        —     

U.S. agency securities

     354,830        —           354,830        —     

Municipal bonds

     13,154        —           13,154        —     

Corporate securities

     323,463        —           323,463        —     

Foreign government securities

     1,356        —           1,356        —     

Equity securities (1)

     1,275        1,275         —          —     

Foreign currency derivatives (2)

     147        —           147        —     

Liabilities:

         

Foreign currency derivatives (3)

     (473     —           (473     —     
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 1,063,132      $ 323,732       $ 739,400      $ —     
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1) Included in either cash and cash equivalents or investments in debt and equity securities in the Company’s Consolidated Balance Sheet at February 29, 2012, in addition to $196.9 million of cash.
(2) Included in Other current assets in the Company’s Consolidated Balance Sheet at February 29, 2012.
(3) Included in Accounts payable and accrued expenses in the Company’s Consolidated Balance Sheet at February 29, 2012.

The following table represents the Company’s investments measured at fair value as of February 28, 2013 (in thousands):

 

     Amortized
Cost
     Gross Unrealized     Aggregate
Fair Value
     Balance Sheet Classification  
             Cash
Equivalent
Marketable
Securities
     Short-term
Marketable
Securities
     Long-term
Marketable
Securities
 
        Gains      Losses(1)             

Money markets

   $ 143,680       $ —         $ —        $ 143,680       $ 143,680       $ —         $ —     

Interest-bearing deposits

     123,518         —           —          123,518         —           123,518         —     

Commercial paper

     54,483         —           —          54,483         39,498         14,985         —     

U.S. agency securities

     360,060         136         (203     359,993         7,041         54,485         298,467   

Corporate securities

     311,561         1,262         (132     312,691         —           172,250         140,441   

Foreign government securities

     26,902         2         (35     26,869         —           26,869         —     

Equity securities

     6         268         —          274         —           274         —     
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 1,020,210       $ 1,668       $ (370   $ 1,021,508       $ 190,219       $ 392,381       $ 438,908   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) As of February 28, 2013, there were less than $0.1 million of accumulated unrealized losses related to investments that have been in a continuous unrealized loss position for 12 months or longer.

The following table summarizes the stated maturities of the Company’s investment in available-for-sale securities at February 28, 2013 (in thousands):

 

     Total      Less than
1 Year
     2-3 Years      4-5 Years      More than
5 Years
 

Maturity of short and long term available-for-sale securities

   $ 831,015       $ 392,107       $ 183,928       $ 254,980       $ —     

 

The following table represents the Company’s investments measured at fair value as of February 29, 2012 (in thousands):

 

     Amortized
Cost
     Gross Unrealized     Aggregate
Fair Value
     Balance Sheet Classification  
           Cash
Equivalent
Marketable
Securities
     Short-term
Marketable
Securities
     Long-term
Marketable
Securities
 
        Gains      Losses(1)             

Money markets

   $ 322,207       $ —         $ —        $ 322,207       $ 322,207       $ —         $ —     

U.S. Treasury securities

     250         —           —          250         —           250         —     

Interest-bearing deposits

     445         —           —          445         —           445         —     

Commercial paper

     46,475         3         —          46,478         29,496         16,982         —     

U.S. agency securities

     354,758         172         (100     354,830         —           38,943         315,887   

Municipal bonds

     13,103         51         —          13,154         —           13,154         —     

Corporate securities

     324,832         490         (1,859     323,463         619         191,893         130,951   

Foreign government securities

     1,355         1         —          1,356         —           1,356         —     

Equity securities

     29         1,246         —          1,275         —           1,275         —     
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 1,063,454       $ 1,963       $ (1,959   $ 1,063,458       $ 352,322       $ 264,298       $ 446,838   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) As of February 29, 2012, there were $0.1 million of accumulated unrealized losses related to investments that have been in a continuous unrealized loss position for 12 months or longer.

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