Electronic Arts 2001 Annual Report Download - page 48

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46
2001 AR
(3) FINANCIAL INSTRUMENTS
(a) Cash and Investments
(In thousands)
As of March 31, 2001 2000
Cash and cash equivalents:
Cash $ 70,196 $ 153,436
Money market funds 250,182 11,503
Municipal securities 91,879 81,326
Commercial paper 7,555 –
Cash and cash equivalents 419,812 246,265
Short-term investments:
Available-for-sale
Municipal securities 42,604 76,513
Corporate bonds 4,076 3,013
U.S. Agency bonds –4,013
Held-to-maturity
U.S. Treasury securities –10,000
Short-term investments 46,680 93,539
Cash, cash equivalents and short-term investments $ 466,492 $ 339,804
Long-term investments:
U.S. Treasury securities $ 8,400 $ 8,400
Long-term and short-term held-to-maturity investments include commercial notes with original maturities of five to
eight years secured by U.S. Treasury Notes which enable the Company to take advantage of certain tax incentives
from its Puerto Rico operation. These investments are treated as held-to-maturity for financial reporting purposes.
The fair value of held-to-maturity securities at March 31, 2001 was $8,601,000 which included gross unrealized
gains of $201,000. The fair value of held-to-maturity securities at March 31, 2000 was $18,162,000 which included
gross unrealized losses of $238,000.
(b) Marketable Securities
Marketable securities are comprised of equity securities. The Company has accounted
for investments in equity securities as “available-for-sale” and has stated applicable investments at fair value, with
net unrealized appreciation reported as a separate component of accumulated other comprehensive income (loss)
in stockholders’ equity. Marketable securities had an aggregate cost of $7,066,000 and $15,000 at March 31, 2001
and 2000, respectively. At March 31, 2001, marketable securities included gross unrealized gains of $2,956,000.
At March 31, 2000, marketable securities included gross unrealized gains of $221,000.
There were no sales of marketable securities in fiscal year 2001. For the fiscal year ended March 31, 2000, the
fair value of marketable securities sold was $8,604,000. The gross realized gains from these sales totaled
$7,528,000. The gain on sale of investments is based on the specific identification method.