eBay 2009 Annual Report Download - page 114

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
cash balances held in Europe within the same financial institution (“Aggregate Cash Deposits”). This
arrangement also allows us to withdraw amounts exceeding the Aggregate Cash Deposits up to an agreed-upon
limit. The net balance of the withdrawals and the Aggregate Cash Deposits are used by the financial institution as
a basis for calculating our net interest expense or income. As of December 31, 2009, we had a total of $2.5
billion in cash withdrawals offsetting our $2.5 billion in Aggregate Cash Deposits held within the same financial
institution under this cash pooling arrangement.
Note 9 — Derivative Instruments:
Fair Value of Derivative Contracts: Derivative instruments are reported at fair value as follows (in
thousands):
Derivative Assets
Reported in Other
Current Assets
Derivative Liabilities
Reported in Other
Current Liabilities
December 31,
2009
December 31,
2009
Foreign exchange contracts designated as cash flow hedges ............ $ 27 $4,848
Foreign exchange contracts not designated as hedging instruments ....... 335 862
Total fair value of derivative instruments ........................... $362 $5,710
Effect of Derivative Contracts on Accumulated Other Comprehensive Income (Loss): The following table
represents the activity of derivative contracts which qualify for hedge accounting as of December 31, 2008 and
December 31, 2009, and the impact of designated derivative contracts on accumulated other comprehensive
income for year ended December 31, 2009 (in thousands):
December 31,
2008
Gain (loss)
recognized in other
comprehensive
income
Gain (loss)
reclassified from
accumulated other
comprehensive
income to income
December 31,
2009
Foreign exchange contracts designated as cash
flow hedges .......................... $40,352 $(60,603) $15,430 $(4,821)
Effect of Derivative Contracts on the Consolidated Statement of Income: The following table provides the
location in our financial statements of the recognized gains or losses related to our derivative instruments (in
thousands):
Year Ended
December 31, 2009
Foreign exchange contracts designated as cash flow hedges recognized in net revenues ...... $15,430
Foreign exchanges contracts not designated as hedging instruments recognized in interest and
other income, net ............................................................ (28,933)
Total gain recognized from derivative contracts in the consolidated statement of income ..... $(13,503)
106