TripAdvisor 2015 Annual Report Download - page 83


NOTE 5: FINANCIAL INSTRUMENTS
Cash, Cash Equivalents and Marketable Securities
Thefollowingtablesshowourcashandavailable-for-salesecurities’amortizedcost,grossunrealizedgains,grossunrealizedlossesandfairvalueby
significantinvestmentcategoryrecordedascashandcashequivalentsorshortandlong-termmarketablesecuritiesasofDecember31,2015andDecember31,
2014(inmillions):

December 31, 2015
                 Cash and Short-Term Long-Term
  Amortized Unrealized Unrealized Fair Cash Marketable Marketable
  Cost Gains Losses Value Equivalents Securities Securities
Cash  $ 598  $ —  $ —  $ 598  $ 598  $ —  $ —
Level1:                     
Moneymarketfunds   11   —   —   11   11   —   —
Level2:                     
U.S.agencysecurities   13   —   —   13   —   9   4
U.S.treasurysecurities   16   —   —   16   4   12   —
Certificatesofdeposit   5   —   —   5   —   4   1
Commercialpaper   1   —   —   1   —   1   —
Corporatedebtsecurities   54   —   —   54   1   21   32
Subtotal   89   —   —   89   5   47   37
Total  $ 698  $ —  $ —  $ 698  $ 614  $ 47  $ 37


December 31, 2014
                 Cash and Short-Term Long-Term
  Amortized Unrealized Unrealized Fair Cash Marketable Marketable
  Cost Gains Losses Value Equivalents Securities Securities
Cash  $ 447  $ —  $ —  $ 447  $ 447  $ —  $ —
Level1:                     
Moneymarketfunds   8   —   —   8   8   —   —
Level2:                     
U.S.agencysecurities   38   —   —   38   —   35   3
Certificatesofdeposit   8   —   —   8   —   8   —
Commercialpaper   1   —   —   1   —   1   —
Corporatedebtsecurities   92   —   —   92   —   64   28
Subtotal   139   —   —   139   —   108   31
Total  $ 594  $ —  $ —  $ 594  $ 455  $ 108  $ 31


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,2015and2014,
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,2015,2014,and2013.We
consideranyindividualinvestmentsinanunrealizedlosspositiontobetemporaryinnatureanddonotconsideranyofourinvestmentsother-than-temporarily
impairedasofDecember31,2015.

80