eBay 2009 Annual Report Download - page 113

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table summarizes our financial assets and liabilities measured at fair value on a recurring
basis as of December 31, 2009 (in thousands):
Description
Balance as of
December 31,
2009
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant
Other
Observable
Inputs (Level 2)
Assets:
Cash and cash equivalents:
Bank deposits and money market funds ....... $3,999,818 $3,999,818 $ —
Total cash and cash equivalents ................. 3,999,818 3,999,818 —
Short-term investments:
Restricted cash .......................... 29,123 29,123 —
Corporate debt securities .................. 73,140 — 73,140
Government and agency securities ........... 109,807 — 109,807
Time deposits ........................... 310,418 — 310,418
Equity instruments ....................... 421,498 421,498 —
Total short-term investments ................... 943,986 450,621 493,365
Derivatives ................................. 362 — 362
Long-term assets:
Restricted cash .......................... 985 985 —
Corporate debt securities .................. 457,183 — 457,183
Government and agency securities ........... 249,360 — 249,360
Time deposits and other ................... 1,583 — 1,583
Total long-term assets ........................ 709,111 985 708,126
Total financial assets ......................... $5,653,277 $4,451,424 $1,201,853
Liabilities:
Derivatives ................................. $ 5,710 $ — $ 5,710
Our financial assets and liabilities are valued using market prices on both active markets (level 1) and less
active markets (level 2). Level 1 instrument valuations are obtained from real-time quotes for transactions in
active exchange markets involving identical assets. Level 2 instrument valuations are obtained from readily
available pricing sources for comparable instruments. As of December 31, 2009, we did not have any assets or
liabilities requiring measurement at fair value without observable market values that would require a high level
of judgment to determine fair value (level 3). Our derivative instruments are valued using pricing models that
take into account the contract terms as well as multiple inputs where applicable, such as equity prices, interest
rate yield curves, option volatility and currency rates. Our derivative instruments are short-term in nature,
typically one month to one year in duration. We maintain our customer account balances in interest bearing bank
deposits and (including time deposits with maturity dates of less than a year) which are valued using market
prices on active markets (level 1). As of December 31, 2009, our customer account balance was approximately
$1.5 billion.
As of December 31, 2009, we held no direct investments in auction rate securities, collateralized debt
obligations, structured investment vehicles or mortgage-backed securities.
In Europe, we have a cash pooling arrangement with a financial institution for cash management purposes.
This arrangement allows for cash withdrawals from this financial institution based upon our aggregate operating
105