eBay 2007 Annual Report Download - page 104

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Gross
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
December 31, 2007
Short-term investments:
Restricted cash ......................... $17,401 $ 9 $ — $ 17,410
Corporate debt securities .................. 37,802 — (644) 37,158
Government and agency securities ........... 1,025 2 — 1,027
Time deposits and other ................... 22,428 — — 22,428
Equity instruments ....................... 8,507 589,734 — 598,241
$87,163 $589,745 $(644) $676,264
Long-term investments:
Restricted cash ......................... $ 8,852 $ — $ — $ 8,852
Corporate debt securities .................. 16,465 5 (8) 16,462
$25,317 $ 5 $ (8) $ 25,314
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, 2007 (in thousands):
Fair Value
Gross
Unrealized
Losses Fair Value
Gross
Unrealized
Losses Fair Value
Gross
Unrealized
Losses
Less than 12 Months 12 Months or Greater Total
Corporate debt
securities ........... $35,923 $(644) $5,022 $(8) $40,945 $(652)
Our investment portfolio consists of both corporate and government securities that have a maximum maturity
of five years. The corporate and government securities that we invest in are generally deemed to be low risk, based
on their credit rating from the major rating agencies. The longer the duration of these securities, the more
susceptible they are to changes in market interest rates and bond yields. As interest rates increase, those securities
purchased at a lower yield show a mark-to-market unrealized loss. The unrealized losses are due primarily to
changes in ratings and interest rates. We expect to realize the full value of all these investments upon maturity or
sale. As of December 31, 2007, the losses on these securities have an average remaining duration of approximately
one month. Restricted cash is held primarily in money market funds and interest bearing accounts for letters of
credit related primarily to various lease arrangements.
Effective during 2007, we began to account for our investment in MercadoLibre as an available-for-sale
marketable equity security due to MercadoLibre’s initial public offering of its common stock in August of 2007. As
of December 31, 2007, our investment was recorded at fair value and reported as a short-term investment with
unrealized gains, net of tax, excluded from earnings and reported as a component of accumulated other compre-
hensive income.
94
eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)