Google 2011 Annual Report Download - page 94

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As of December 31, 2010, we did not have any investments in marketable securities that were in an unrealized
loss position for 12 months or greater.
As of December 31, 2011
Less than 12 Months 12 Months or Greater Total
Fair Value Unrealized
Loss Fair Value Unrealized
Loss Fair Value Unrealized
Loss
Foreign government bonds ...................... $ 302 $ (11) $ 6 $ 0 $ 308 $ (11)
Corporate debt securities ....................... 2,160 (97) 17 (1) 2,177 (98)
Agency residential mortgage-backed securities .... 716 (3) 19 (2) 735 (5)
Total ..................................... $3,178 $(111) $42 $(3) $3,220 $(114)
Investment in a Marketable Equity Security
During the fourth quarter of 2011, we recorded an other-than-temporary impairment charge of $88 million
related to our investment in Clearwire Corporation. This amount was included in interest and other income, net in
the accompanying Consolidated Statement of Income.
Securities Lending Program
From time to time, we enter into securities lending agreements with financial institutions to enhance
investment income. We loan selected securities which are secured by collateral in the form of cash or securities.
Cash collateral is invested in reverse repurchase agreements. We classify loaned securities as cash equivalents or
marketable securities on the accompanying Consolidated Balance Sheets. We record the cash collateral as an
asset with a corresponding liability. We classify reverse repurchase agreements maturing within three months as
cash equivalents and those longer than three months as receivable under reverse repurchase agreements on the
accompanying Consolidated Balance Sheets. For lending agreements collateralized by securities, we do not record
an asset or liability as we are not permitted to sell or repledge the associated collateral.
Note 4. Debt
Short-Term Debt
We have a debt financing program of up to $3.0 billion through the issuance of commercial paper. Net
proceeds from this program are used for general corporate purposes. At December 31, 2010 and 2011, we had
$3.0 billion and $750 million of commercial paper outstanding recorded as short-term debt with weighted-
average interest rates of 0.3% and 0.1%. In conjunction with this program, we have a $3.0 billion revolving credit
facility expiring in July 2016. The interest rate for the credit facility is determined based on a formula using certain
market rates. At December 31, 2010 and 2011, we were in compliance with the financial covenant in the credit
facility. No amounts were outstanding under the credit facility at December 31, 2010 and December 31, 2011.
In December 2010, we issued a secured promissory note in the amount of $468 million with an interest rate
of 1.0% and a one-year maturity date. Proceeds were used for the acquisition of an office building in New York City.
In December 2011, we extended the maturity date of the note to December 2012. As of December 31, 2010 and
2011, the outstanding balance was $468 million.
The estimated fair value of the short-term debt approximated its carrying value at December 31, 2010 and
December 31, 2011.
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