COST Financial_Report

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Unformatted text preview: ea rs. Investments with ma turities beyond five yea rs ma y be cla ssified, ba sed on the Compa ny&#x2019 short-term ba sed on their highly liquid na ture a nd beca use they represent the investment of ca sh tha t is a va ila ble for current opera tions. Short-term investments cla ssified a s a va ila ble-for-sa le a re recorded a t fa ir va lue using the specific identifica tion method with the unrea liz ed ga ins a nd losses reflected in a ccumula ted other comprehensive income until rea liz ed. Rea liz ed ga ins a nd losses from the sa le of a va ila ble-for-sa le securities, if a ny, a re determined on a specific identifica tion ba sis a nd a ll a re recorded in interest income a nd other, net in the consolida ted sta tements of income. Short-term investments cla ssified a s held-to-ma turity a re fina ncia l instruments tha t the Compa ny ha s the intent a nd a bility to hold to ma turity a nd a re reported net of a ny rela ted a mortiz a tion a nd a re not remea sured to fa ir va lue on a recurring ba sis.</font></p> <p style=3D'MARGIN-TOP: 12px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>The Compa ny periodica lly eva lua tes unrea liz ed losses in its investment securities for other-tha n-tempora ry impa irment, using both qua lita tive a nd qua ntita tive criteria . In the event a security is deemed to be other-tha n-tempora rily impa ired, the Compa ny recogniz es the credit loss component in interest income a nd other, net in the consolida ted sta tements of income. The ma jority of the Compa ny&#x2019 </div><spa n></spa n></td> < /tr> < tr cla ss=3Dro> < td cla ss=3Dpl va lign=3Dtop>Fa ir Va lue of Fina ncia l Instruments</td> < td cla ss=3Dtext><div> <p style=3D'MARGIN-TOP: 18px Instruments</i></font></p> <p style=3D'MARGIN-TOP: 6 px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>The ca rrying va lue of the Compa ny&#x2019 equiva lents, receiva bles, a nd a ccounts pa ya ble, a pproxima te fa ir va lue due to their short-term na ture or va ria ble interest ra tes. See Notes 2, 3, a nd 4 for the ca rrying va lue a nd fa ir va lue of the Compa ny&#x2019 debt, respectively.</font></p> <p style=3D'MARGIN-TOP: 12px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>The Compa ny a ccounts for certa in a sets a nd lia bilities a t fa ir va lue. Fa ir va lue is defined a s the price tha t would be received to sell a n a sset or pa id to tra nsfer a lia bility (a n exit price) in a n orderly tra nsa ction between ma rket pa rticipa nts a t the mea surement da te. Fa ir va lue is estima ted by a pplying a fa ir va lue hiera rchy, which requires ma ximiz ing the use of observa ble inputs when mea suring fa ir va lue. The three levels of inputs a re:</font></p> <p style=3D'MARGIN-TOP: 6 px Quoted ma rket prices in a ctive ma rkets for identica l a ssets or lia bilities.</font></p> <p style=3D'MARGIN-TOP: 6 px Observa ble ma rket-ba sed inputs or unobserva ble inputs tha t a re corrobora ted by ma rket da ta .</font></p> <p style=3D'MARGIN-TOP: 6 px Significa nt unobserva ble inputs tha t a re not corrobora ted by ma rket da ta...
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This document was uploaded on 04/07/2014.

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