NOTE 5 — Fair Value Measurements
Financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 are classified using the fair value hierarchy in the table below:
| Total | Level 1 | Level 2 | ||||||||||
| (In thousands) | ||||||||||||
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Assets |
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Cash equivalents: |
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Money market funds |
$ | 229,425 | $ | 229,425 | $ | — | ||||||
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Time deposits |
138,956 | — | 138,956 | |||||||||
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Restricted cash: |
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Time deposits |
17,085 | — | 17,085 | |||||||||
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Derivatives: |
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Foreign currency forward contracts |
2,225 | — | 2,225 | |||||||||
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Investments: |
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Time deposits |
258,308 | — | 258,308 | |||||||||
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Corporate debt securities |
200,386 | — | 200,386 | |||||||||
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Total assets |
$ | 846,385 | $ | 229,425 | $ | 616,960 | ||||||
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Financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 are classified using the fair value hierarchy in the table below:
| Total | Level 1 | Level 2 | ||||||||||
| (In thousands) | ||||||||||||
|
Assets |
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Cash equivalents: |
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|
Money market funds |
$ | 677,523 | $ | 677,523 | $ | — | ||||||
|
Time deposits |
89,084 | — | 89,084 | |||||||||
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Restricted cash: |
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|
Time deposits |
9,855 | — | 9,855 | |||||||||
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Investments: |
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Time deposits |
525,533 | — | 525,533 | |||||||||
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Corporate debt securities |
245,477 | — | 245,477 | |||||||||
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Total assets |
$ | 1,547,472 | $ | 677,523 | $ | 869,949 | ||||||
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Liabilities |
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Derivatives: |
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Foreign currency forward contracts |
$ | 3,290 | $ | — | $ | 3,290 | ||||||
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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, 2013 and 2012, our cash and cash equivalents consisted primarily of prime institutional money market funds with maturities of 90 days 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, 2013, we had $67 million of short-term and $133 million of long-term available for sale investments and the amortized cost basis of the investments approximated their fair value with gross unrealized gains and gross unrealized losses both of $1 million. As of December 31, 2012, we had $119 million of short-term and $126 million of long-term available for sale investments and the amortized cost basis of the investments approximated their fair value with gross unrealized gains of $2 million 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 90 days are classified as cash equivalents and those with remaining maturities of less than one year are classified within short-term investments. Additionally, we have time deposits classified as restricted cash to fulfill the requirement of an aviation authority of a certain foreign country to protect against the potential non-delivery of travel services in that country. Of the total time deposit investments, $283 million and $274 million as of December 31, 2013 and 2012 related to balances held by our majority-owned subsidiaries.
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, 2013, we were party to outstanding forward contracts hedging our liability exposures with a total net notional value of $282 million. We had a net forward asset of $2 million recorded in prepaid expenses and other current assets and a net forward liability of $3 million as of December 31, 2013 and 2012 recorded in accrued expenses and other current liabilities. We recorded $47 million, $(21) million, and $(1) million in net gains (losses) from foreign currency forward contracts in 2013, 2012 and 2011.