v2.4.0.6
Fair Value Measurements
 12 Months Ended
Dec. 31, 2011
Fair Value Measurements [Abstract]  
Fair Value Measurements

NOTE 5 — Fair Value Measurements

Financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2011 are classified using the fair value hierarchy in the table below:

 

00000000 00000000 00000000
     Total      Level 1      Level 2  
            (In thousands)         

Assets

         

Cash equivalents:

         

Money market funds

    $ 310,075       $ 310,075       $ —     

Derivatives:

         

Foreign currency forward contracts

      1,043         —           1,043   

Investments:

         

Time deposits

      592,162         —           592,162   

Corporate debt securities

      268,664         —           268,664   
  

 

 

     

 

 

     

 

 

  

Total assets

    $ 1,171,944       $ 310,075       $ 861,869   
  

 

 

     

 

 

     

 

 

  

Financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2010 are classified using the fair value hierarchy in the table below:

 

00000000 00000000 00000000
     Total      Level 1      Level 2  
            (In thousands)         

Assets

         

Cash equivalents:

         

Money market funds

    $ 319,169       $ 319,169       $ —     

Investments:

         

Time deposits

      414,018         —           414,018   

Corporate debt securities

      243,963         —           243,963   
  

 

 

     

 

 

     

 

 

  

Total assets

    $ 977,150       $ 319,169       $ 657,981   
  

 

 

     

 

 

     

 

 

  

Liabilities

         

Foreign currency forward contracts

    $ 1,431       $ —         $ 1,431   
  

 

 

     

 

 

     

 

 

  

We classify our cash equivalents and investments within Level 1 and Level 2 as we value our cash equivalents and investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Valuation of the foreign currency forward contracts is based on foreign currency exchange rates in active markets, a Level 2 input.

As of December 31, 2011 and 2010, our cash and cash equivalents consisted primarily of prime institutional money market funds with maturities of 90 days or less, time deposits as well as bank account balances.

We invest in investment grade corporate debt securities, all of which are classified as available for sale. As of December 31, 2011, we had $57 million of short-term and $212 million of long-term available for sale investments and the amortized cost basis of the investments approximated their fair value with gross unrealized gains of $2 million and gross unrealized losses of $1 million. As of December 31, 2010, we had $81 million of short-term and $163 million of long-term available for sale investments and the amortized cost basis of these investments approximated their fair value with gross unrealized gains of $1 million and gross unrealized losses of less than $1 million.

We also hold time deposit investments with financial institutions. Time deposits with original maturities of less than 90 days are classified as cash equivalents and those with remaining maturities of less than one year are classified within short-term investments. Of the total time deposit investments, $228 million and $88 million as of December 31, 2011 and 2010 related to balances held by our majority-owned subsidiaries.

We use foreign currency forward contracts to economically hedge certain merchant revenue exposures and in lieu of holding certain foreign currency cash for the purpose of economically hedging our foreign currency-denominated operating liabilities. As of December 31, 2011, we were party to outstanding forward contracts hedging our liability and revenue exposures with a total net notional value of $219 million. We had a net forward asset of $1 million as of December 31, 2011 recorded in prepaid expenses and other current assets and a net forward liability of $1 million as of December 31, 2010 recorded in accrued expenses and other current liabilities. We recorded $(1) million, $6 million, and $32 million in net gains (losses) from foreign currency forward contracts in 2011, 2010, and 2009.