eBay 2010 Annual Report Download - page 115

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
financial institution as a basis for calculating our net interest expense or income. As of December 31, 2010, we
had a total of $3.3 billion in cash withdrawals offsetting our $3.3 billion in Aggregate Cash Deposits held within
the same financial institution under these cash pooling arrangements.
Note 9 — Derivative Instruments:
The notional amounts associated with our foreign currency contracts at December 31, 2009 and
December 31, 2010 were $298.6 million and $1.8 billion, respectively. Derivative transactions are measured in
terms of the notional amount, but this amount is not recorded on the balance sheet and is not, when viewed in
isolation, a meaningful measure of the risk profile of the instruments. The notional amount is generally not
exchanged, but is used only as the basis on which the value of foreign exchange payments are determined.
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
Derivative Assets
Reported in Other
Current Assets
Derivative Liabilities
Reported in Other
Current Liabilities
December 31, 2009 December 31, 2010
Foreign exchange contracts
designated as cash flow
hedges ..................... $ 27 $4,848 $35,853 $4,162
Foreign exchange contracts not
designated as hedging
instruments ................. 335 862 1,343 801
Total fair value of derivative
instruments ................. $362 $5,710 $37,196 $4,963
Effect of Derivative Contracts on Accumulated Other Comprehensive Income (Loss): The following
tables represent the activity of derivative contracts which qualify for hedge accounting as of December 31, 2009
and December 31, 2010, and the impact of designated derivative contracts on accumulated other comprehensive
income for those years (in thousands):
December 31,
2008
Amount of gain (loss)
recognized in other
comprehensive income
(effective portion)
Amount of gain (loss)
reclassified from
accumulated other
comprehensive
income to income
(effective portion)
December 31,
2009
Foreign exchange contracts designated as
cash flow hedges .................. $40,352 $(29,743) $15,430 $ (4,821)
December 31,
2009
Amount of gain (loss)
recognized in other
comprehensive income
(effective portion)
Amount of gain (loss)
reclassified from
accumulated other
comprehensive
income to income
(effective portion)
December 31,
2010
Foreign exchange contracts designated as
cash flow hedges .................. $(4,821) $ 30,385 $12,004 $13,560
110