TripAdvisor 2014 Annual Report Download - page 91

Download and view the complete annual report

Please find page 91 of the 2014 TripAdvisor annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 172

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172

81
December 31, 2013
Cash and Short-Term Long-Term
Amortized Unrealized Unrealized Fair Cash Marketable Marketable
Cost Gains Losses Value Equivalents Securities Securities
Cash .............................................................. $ 195 $ — $ — $ 195 $ 195 $ — $ —
Level 1:
Money market funds ............................... 156 — — 156 156 — —
Level 2:
U.S. agency securities ............................. 37 — — 37 — 14 23
Certificates of deposit ............................. 23 — — 23 — 16 7
Commercial paper ................................... 5 — — 5 — 5 —
Corporate debt securities ........................ 254 — — 254 — 96 158
Subtotal ............................................. 319 — — 319 — 131 188
Total ............................................. $ 670 $
—
$
—
$670 $ 351 $ 131 $188
Our cash and cash equivalents consist of cash on hand in global financial institutions, money market funds and marketable
securities, with maturities of 90 days or less at the date purchased. The remaining maturities of our long-term marketable securities
range from one to three years and our short-term marketable securities include maturities that were greater than 90 days at the date
purchased and have 12 months or less remaining at December 31, 2014 and 2013, respectively.
We classify our cash equivalents and marketable securities within Level 1 and Level 2 as we value our cash equivalents and
marketable securities using quoted market prices (Level 1) or alternative pricing sources (Level 2). The valuation technique we used to
measure the fair value of money market funds were derived from quoted prices in active markets for identical assets or liabilities. Fair
values for Level 2 investments are considered “Level 2” valuations because they are obtained from independent pricing sources for
identical or comparable instruments, rather than direct observations of quoted prices in active markets. Our procedures include
controls to ensure that appropriate fair values are recorded, including comparing the fair values obtained from our independent pricing
services against fair values obtained from another independent source.
There were no material realized gains or losses related to sales of our marketable securities for the years ended December 31,
2014, 2013 and 2012.
As of December 31, 2014, we have marketable securities with a total fair value of $68 million currently in an unrealized loss
position. The gross unrealized loss amount was not material at December 31, 2014. We consider the declines in market value of our
marketable securities investment portfolio to be temporary in nature and do not consider any of our investments other-than-
temporarily impaired. During the years ended December 31, 2014, 2013 and 2012, we did not recognize any impairment charges. We
also did not have any material investments in marketable securities that were in a continuous unrealized loss position for 12 months or
greater at December 31, 2014 or 2013.
Derivative Financial Instruments
Our current forward contracts are not designated as hedges and have current maturities of less than 90 days. Consequently, any
gain or loss resulting from the change in fair value was recognized in our consolidated statement of operations. All gains and losses
recorded to other, net on the consolidated statement of operations for the years ended December 31, 2014, 2013, and 2012 were not
material.
The following table shows the notional principal amounts of our outstanding derivative instruments that are not designated as
hedging instruments for the periods presented:
December 31,
2014 December 31,
2013
(in millions)
Foreign exchange-forward contracts (1)(2) ........................................................... $ 20 $ 5
(1) Derivative contracts address foreign exchange fluctuations for the Euro versus the U.S. Dollar.
(2) The fair value of our derivatives are not material for all periods presented and are reported as liabilities in accrued and other
current liabilities on our consolidated balance sheets. We measure the fair value of our outstanding or unsettled derivatives using
Level 2 fair value inputs, as we use a pricing model that takes into account the contract terms as well as current foreign currency
exchange rates in active markets.