Google 2009 Annual Report Download - page 93

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Google Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
As of December 31, 2009
Adjusted
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair
Value
Time deposits ........................................ $1,250,000 $ — $ — $ 1,250,000
U.S. government agencies ............................. 3,700,476 5,396 (2,004) 3,703,868
U.S. government notes ................................ 2,519,780 — (28,071) 2,491,709
Foreign government bonds ............................. 36,662 — (19) 36,643
Municipal securities ................................... 2,100,241 29,626 (93) 2,129,774
Money market mutual funds ............................ 27,899 — — 27,899
Corporate debt securities .............................. 2,826,461 12,910 (17,260) 2,822,111
Agency residential mortgage-backed securities ........... 1,584,537 5,511 (11,404) 1,578,644
Commercial mortgage-backed securities ................ 47,141 575 — 47,716
Marketable equity security ............................. 145,000 53,823 — 198,823
Total ............................................ $14,238,197 $107,841 $(58,851) $14,287,187
Gross unrealized gains and losses on cash equivalents were not material at December 31, 2008 and
December 31, 2009.
Our corporate debt securities are primarily guaranteed by the full faith and credit of the U.S. government
under the Federal Deposit Insurance Corporation’s Temporary Liquidity Guarantee Program (TLGP) or the
sovereign guarantee of foreign governments under similar programs to the TLGP.
Our agency residential mortgage-backed securities are specified pools of mortgage pass-through securities
that are guaranteed by government-sponsored enterprises. Our commercial mortgage-backed securities are fully
defeased securities with underlying collateral loans replaced by U.S. Treasury notes.
Our marketable equity security consists of our investment in Clearwire.
We recognized gross realized gains of $105.8 million and $118.3 million for the years ended December 31,
2008 and 2009. Gross realized losses were not material in all periods presented. We determine realized gains or
losses on the sale of marketable securities on a specific identification method, and we reflect such gains and
losses as a component of interest income and other, net, in our accompanying Consolidated Statements of
Income.
The following table summarizes the estimated fair value of our investments in marketable securities,
excluding the marketable equity security, designated as available-for-sale and classified by the contractual
maturity date of the security (in thousands):
As of
December 31,
2009
Due in 1 year ............................................................................ $ 1,400,583
Due in 1 year through 5 years .............................................................. 8,442,820
Due in 5 years through 10 years ........................................................... 1,557,923
Due after 10 years ....................................................................... 2,687,038
Total ............................................................................... $14,088,364
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