Expedia 2015 Annual Report Download - page 114
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Financial assets measured at fair value on a recurring basis as of December 31, 2014 are classified using the
fair value hierarchy in the table below:
Total Level 1 Level 2
(In thousands)
Assets
Cash equivalents:
Money market funds $161,059 $161,059 $ —
Time deposits 298,968 — 298,968
Restricted cash:
Time deposits 19,980 — 19,980
Derivatives:
Foreign currency forward contracts 9,176 — 9,176
Investments:
Time deposits 312,762 — 312,762
Corporate debt securities 142,575 — 142,575
Total assets $944,520 $161,059 $783,461
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.
As of December 31, 2015 and 2014, our cash and cash equivalents consisted primarily of prime institutional
money market funds with maturities of three months or less, time deposits as well as bank account balances.
We invest in investment grade corporate debt securities, all of which are classified as available for sale. As
of December 31, 2015, we had $34 million of short-term and $65 million of long-term available for sale
investments and the amortized cost basis of the investments approximated their fair value with both gross
unrealized gains and gross unrealized losses of less than $1 million. As of December 31, 2014, we had $43
million of short-term and $100 million of long-term available for sale investments and the amortized cost basis of
the investments approximated their fair value with both gross unrealized gains and gross unrealized losses of less
than $1 million.
We also hold time deposit investments with financial institutions. Time deposits with original maturities of
less than three months are classified as cash equivalents and those with remaining maturities of less than one year
are classified within short-term investments.
We use foreign currency forward contracts to economically hedge certain merchant revenue exposures and
in lieu of holding certain foreign currency cash for the purpose of economically hedging our foreign currency-
denominated operating liabilities. As of December 31, 2015, we were party to outstanding forward contracts
hedging our liability exposures with a total net notional value of $1.9 billion. We had a net forward asset of $8
million and $9 million recorded in prepaid expenses and other current assets as of December 31, 2015 and 2014.
We recorded $46 million, $10 million and $47 million in net gains (losses) from foreign currency forward
contracts in 2015, 2014 and 2013.
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