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In 2009, we acquired an additional interest in an equity method investment for $3 million in cash, which
was included within the 2009 total purchase price above, and resulted in a 60% majority ownership interest and
our consolidation of this entity. In conjunction with our acquisition of additional interest, we remeasured our
previously held equity interest to fair value and recognized a loss of $5 million in other, net during the period.
The fair value of the 40% noncontrolling interest in the company was estimated to be $15 million at the time of
acquisition. Both fair value assessments were determined based on various valuation techniques, including
market comparables and discounted cash flow projections.
In addition to and including the 60% majority ownership interest discussed above, certain of our
acquisitions made during 2009 and 2008 include noncontrolling interests with certain rights, whereby we may
acquire and the minority shareholders may sell to us the additional shares of the company, at fair value or at
adjusted fair values at our discretion, during various periods from 2011 through 2013. Changes in fair value of
the shares for which the minority holders may sell to us are recorded to the noncontrolling interest, classified in
other long-term liabilities, and as charges or credits to retained earnings (or additional paid-in capital in the
absence of retained earnings). Fair value determinations are based on various valuation techniques, including
market comparables and discounted cash flow projections. At December 31, 2010 and 2009, our redeemable
noncontrolling interest balances were $32 million and $23 million.
NOTE 4 — Fair Value Measurements
Financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2010 are
classified using the fair value hierarchy in the table below:
Total Level 1 Level 2
(In thousands)
Assets
Cash equivalents:
Money market funds ............................... $ 359,169 $359,169 $ —
Investments:
Time deposits .................................... 434,315 — 434,315
Corporate debt securities ............................ 243,963 — 243,963
Total assets ........................................ $1,037,447 $359,169 $678,278
Liabilities
Foreign currency forward contracts ..................... $ 1,431 $ — $ 1,431
Financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2009 are
classified using the fair value hierarchy in the table below:
Total Level 1 Level 2
(In thousands)
Assets
Cash equivalents:
Money market funds .................................. $313,480 $313,480 $ —
Investments:
Time deposits ....................................... 45,849 — 45,849
Foreign currency forward contracts ........................ 250 — 250
Total assets ........................................... $359,579 $313,480 $46,099
We classify our cash equivalents and investments within Level 1 and Level 2 as we value our cash
equivalents and investments using quoted market prices or alternative pricing sources and models utilizing
market observable inputs. Valuation of the foreign currency forward contracts is based on foreign currency
exchange rates in active markets, a Level 2 input.
F-17