eBay 2008 Annual Report Download - page 102

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income (loss), net of related estimated tax provisions or benefits. Additionally, we assess whether an other-than-
temporary impairment loss on our investments has occurred due to declines in fair value or other market conditions.
Declines in fair value that are considered other than temporary are recorded as an impairment of investments in the
consolidated statement of income. We did not recognize an other-than-temporary impairment loss on our
investments in 2008. At December 31, 2007 and 2008, short and long-term investments, are reported at fair
value as follows (in thousands):
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
Gross
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
December 31, 2008
Short-term investments:
Restricted cash ......................... $21,258 $ — $— $ 21,258
Corporate debt securities .................. 5,000 — (2) 4,998
Time deposits and other ................... 4,129 — — 4,129
Equity instruments ....................... 8,507 124,842 — 133,349
$38,894 $124,842 $ (2) $163,734
Long-term investments:
Restricted cash ......................... $ 5,461 $ — $— $ 5,461
Time deposits and other ................... 52 — — 52
$ 5,513 $ — $— $ 5,513
As of December 31, 2008, we expect to realize the full value of our corporate debt security investment which
has remaining term of approximately two months. 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, 2008, 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)