eBay 2011 Annual Report Download - page 113

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
At December 31, 2011 and 2010, we held $5.2 million and $4.5 million , respectively, of time deposits classified as held to maturity which
are recorded at amortized cost.
The following table summarizes the fair value and gross unrealized losses of our short-term and long-term investments, aggregated by type
of investment instrument and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2011
(in
thousands):
Our fixed-income investment portfolio consists of corporate debt securities, government and agency securities and time deposits that have a
maximum maturity of five years. The corporate debt and government and agency securities that we invest in are generally deemed to be low risk
based on their credit ratings from the major rating agencies. The longer the duration of these securities, the more susceptible they are to changes in
market interest rates and bond yields. As interest rates increase, those securities purchased at a lower yield show a mark-to-
market unrealized loss.
The unrealized losses are due primarily to changes in credit spreads and interest rates. We expect to realize the full value of all these investments
upon maturity or sale. As of December 31, 2011 , these securities had a weighted average remaining duration of approximately 13 months.
Restricted cash is held primarily in money market funds and interest bearing accounts for letters of credit related primarily to our global sabbatical
program and various lease arrangements.
The estimated fair values of our short-term and long-term investments classified as available for sale by date of contractual maturity at
December 31, 2011 are as follows (in thousands):
December 31, 2010
Gross
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
(In thousands)
Short-term investments:
Restricted cash
$
20,351
$
—
$
—
$
20,351
Corporate debt securities
371,998
391
(164
)
372,225
Government and agency securities
66,437
98
(1
)
66,534
Time deposits and other
44,772
—
—
44,772
Equity instruments
8,507
533,014
—
541,521
$
512,065
$
533,503
$
(165
)
$
1,045,403
Long-term investments:
Restricted cash
$
1,332
$
—
$
—
$
1,332
Corporate debt securities
1,606,723
4,541
(5,494
)
1,605,770
Government and agency securities
152,170
149
(1,353
)
150,966
$
1,760,225
$
4,690
$
(6,847
)
$
1,758,068
Less than 12 Months
12 Months or Greater
Total
Fair Value
Gross
Unrealized
Losses
Fair Value
Gross
Unrealized
Losses
Fair Value
Gross
Unrealized
Losses
Corporate debt securities
$
2,614,561
$
(57,523
)
$
19,638
$
(887
)
$
2,634,199
$
(58,410
)
Government and agency securities
113,231
(3
)
—
—
113,231
(3
)
$
2,727,792
$
(57,526
)
$
19,638
$
(887
)
$
2,747,430
$
(58,413
)
December 31,
2011
One year or less (including restricted cash of $19,490)
$
1,238,301
One year through two years
1,001,970
Two years through three years
727,175
Three years through four years
328,229
Four years through five years
200,817
$
3,496,492