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Default If statement 'formula' not working

I have two if statements that I need to combine into one statement. The
first statement I have is:
=IF(S1DATEVALUE("10/20/2005"),1,IF(S1=DATEVALUE("10/20/2005"),3,2))
the second statement I have is:
=IF(SEARCH("pen",S3),2,1)
The second statement is where I am having trouble. I tried to add this to
the first statement like so
=IF(S1DATEVALUE("10/20/2005"),1,IF(S1=DATEVALUE("10/20/2005"),3,IF(SEARCH("pending",S3),2,2)))

But the second statement is coming back as a 1. I am new to these if
statements so any help is greatly appreciated.
Thanks.
 
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