ServiceMagic 2014 Annual Report Download - page 88

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IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Long-term marketable equity securities
The cost basis of the Company's long-term marketable equity security at December 31, 2014 is $8.7 million with a gross unrealized loss of
$1.2 million , which is included in "Accumulated other comprehensive loss" in the accompanying consolidated balance sheet. The Company
evaluated the near-term prospects of the issuer in relation to the severity and duration of the unrealized loss. Based on the duration, less than two
months, of the unrealized loss and the Company's ability and intent to hold this security for a reasonable period of time sufficient for an expected
recovery of fair value, the Company does not consider the security to be other-than-temporarily impaired at December 31, 2014. The cost basis of
the Company's long-term marketable equity securities at December 31, 2013 is $8.8 million , with gross unrealized gains of $3.0 million
included in
"Accumulated other comprehensive loss" in the accompanying consolidated balance sheet. In 2012, the Company recorded an $8.7 million other-
than-temporary impairment charge related to one of its securities that was in a continuous unrealized loss position for more than one year, based on
the Company's evaluation of the near-term prospects of the issuer in relation to the severity (fair value was 50
percent less than cost) and duration of
the unrealized loss. The impairment charge is included in “Other (expense) income, net” in the accompanying consolidated statement of operations.
Auction rate security
See Note 7 for information regarding the auction rate security.
NOTE 7—FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS
The following tables present the Company's financial instruments that are measured at fair value on a recurring basis:
68
December 31, 2014
Quoted Market
Prices in Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Fair Value
Measurements
(In thousands)
Assets:
Cash equivalents:
Money market funds
$
174,720
$
—
$
—
$
174,720
Commercial paper
—
388,801
—
388,801
Time deposits
—
42,914
—
42,914
Marketable securities:
Corporate debt securities
—
159,197
—
159,197
Equity security
1,451
—
—
1,451
Long-term investments:
Auction rate security
—
—
6,070
6,070
Marketable equity security
7,410
—
—
7,410
Total
$
183,581
$
590,912
$
6,070
$
780,563
Liabilities:
Contingent consideration arrangements
$
—
$
—
$
(
30,140
)
$
(30,140
)