eBay 2005 Annual Report Download - page 106

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
December 31, 2005
Gross Gross Gross
Amortized Unrealized Unrealized Estimated
Cost Gains Losses Fair Value
Short-term investments:
Restricted cash and investmentsÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 29,670 $ 32 $ Ì $ 29,702
Corporate debt securitiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 362,438 4 (2,679) 359,763
Government and agency securities ÏÏÏÏÏÏÏÏÏÏÏ 371,537 Ì (3,198) 368,339
Time deposits and other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 46,548 Ì Ì 46,548
$810,193 $ 36 $(5,877) $804,352
Long-term investments:
Restricted cash and investmentsÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 1,065 $ Ì $ Ì $ 1,065
Corporate debt securitiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 665,418 115 (1,921) 663,612
Government and agency securities ÏÏÏÏÏÏÏÏÏÏÏ 110,450 Ì (1,409) 109,041
Equity instruments and equity method
investments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 51,949 Ì Ì 51,949
$828,882 $115 $(3,330) $825,667
The following table summarizes the fair value and gross unrealized losses of our short-term and long-term
investments, aggregated by type of investment instrument and length of time that individual securities have
been in a continuous unrealized loss position, at December 31, 2005 (in thousands):
Less than 12 Months 12 Months or Greater Total
Gross Gross Gross
Unrealized Unrealized Unrealized
Fair Value Losses Fair Value Losses Fair Value Losses
Corporate debt
securitiesÏÏÏÏÏÏÏÏÏÏ $401,789 $(1,544) $250,487 $(3,011) $ 652,276 $(4,555)
Government and
agency securities ÏÏÏ 47,184 (38) 398,486 (4,624) 445,670 (4,662)
$448,973 $(1,582) $648,973 $(7,635) $1,097,946 $(9,217)
Our investment portfolio consists of both corporate and government securities that have a maximum
maturity of three years. The longer the duration of these securities, the more susceptible they are to changes in
market interest rates and bond yields. As yields increase, those securities purchased with a lower yield-at-cost
show a mark-to-market unrealized loss. All unrealized losses are due to changes in interest rates and bond
yields. We expect to realize the full value of all these investments upon maturity or sale. The losses on these
securities have an average duration of approximately 11 months.
102