INVESTMENTS AND FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Investments in Available for Sale Securities

The following tables summarize the investments in available-for-sale securities (in thousands):


	December 31, 2012
	Gross Amortized Costs		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Government and agency securities	$	1,312,876	$	985	$	(45	)	$	1,313,816
Corporate debt securities, commercial paper, and bank certificates of deposit		2,039,809		1,597		(622	)		2,040,784
Corporate equity and other marketable securities		230		—		(33	)		197
Alibaba Group Preference Shares		816,261		—		—			816,261

Total investments in available-for-sale securities	$	4,169,176	$	2,582	$	(700	)	$	4,171,058


	December 31, 2013
	Gross Amortized Costs		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Government and agency securities	$	538,397	$	65	$	(101	)	$	538,361
Corporate debt securities, commercial paper, and bank certificates of deposit		2,380,134		2,525		(1,216	)		2,381,443
Corporate equity and other marketable securities		230		153		—			383

Total investments in available-for-sale securities	$	2,918,761	$	2,743	$	(1,317	)	$	2,920,187

Schedule of Available for Sale Securities by Balance Sheet Location


	December 31,
	2012		2013
Reported as:
Short-term marketable securities	$	1,516,175	$	1,330,304
Long-term marketable securities		1,838,425		1,589,500
Alibaba Group Preference Shares		816,261		—
Other assets		197		383

Total	$	4,171,058	$	2,920,187

Schedule of Available for Sale Securities by Contractual Maturities

The contractual maturities of available-for-sale marketable securities were as follows (in thousands):


	December 31,
	2012		2013
Due within one year	$	1,516,175	$	1,330,304
Due after one year through five years		1,838,425		1,589,500

Total available-for-sale marketable securities	$	3,354,600	$	2,919,804

Investments in Unrealized Loss Position

The following tables show all investments in an unrealized loss position for which an other-than-temporary impairment has not been recognized and the related gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):


	December 31, 2012
	Less than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Government and agency securities	$	165,025	$	(45	)	$	—	$	—		$	165,025	$	(45	)
Corporate debt securities, commercial paper, and bank certificates of deposit		729,046		(622	)		—		—			729,046		(622	)
Corporate equity securities		197		(33	)		—		—			197		(33	)

Total investments in available-for-sale securities	$	894,268	$	(700	)	$	—	$	—		$	894,268	$	(700	)


	December 31, 2013
	Less than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Government and agency securities	$	263,514	$	(101	)	$	—	$	—		$	263,514	$	(101	)
Corporate debt securities, commercial paper, and bank certificates of deposit		696,950		(1,214	)		3,833		(2	)		700,783		(1,216	)

Total investments in available-for-sale securities	$	960,464	$	(1,315	)	$	3,833	$	(2	)	$	964,297	$	(1,317	)

Schedule of Fair Value of Financial Assets Measured on Recurring Basis

The following table sets forth the financial assets and liabilities, measured at fair value, by level within the fair value hierarchy as of December 31, 2012 (in thousands):


	Fair Value Measurements at Reporting Date Using
Assets	Level 1		Level 2			Level 3		Total
Money market funds⁽¹⁾	$	685,707	$	—		$	—	$	685,707
Available-for-sale securities:
Government and agency securities⁽¹⁾		—		2,464,227			—		2,464,227
Commercial paper and bank certificates of deposit⁽¹⁾		—		892,769			—		892,769
Corporate debt securities⁽¹⁾		—		1,298,123			—		1,298,123
Time deposits		—		84,555			—		84,555
Alibaba Group Preference Shares		—		—			816,261		816,261
Corporate equity securities⁽²⁾		197		—			—		197
Foreign currency derivative contracts⁽³⁾		—		5,007			—		5,007

Financial assets at fair value	$	685,904	$	4,744,681		$	816,261	$	6,246,846

Liabilities
Foreign currency derivative contracts⁽³⁾		—		(6,662	)		—		(6,662	)

Total financial assets and liabilities at fair value	$	685,904	$	4,738,019		$	816,261	$	6,240,184

The following table sets forth the financial assets and liabilities, measured at fair value, by level within the fair value hierarchy as of December 31, 2013 (in thousands):


	Fair Value Measurements at Reporting Date Using
Assets	Level 1		Level 2			Level 3		Total
Money market funds⁽¹⁾	$	936,438	$	—		$	—	$	936,438
Available-for-sale securities:
Government and agency securities⁽¹⁾		—		876,197			—		876,197
Commercial paper and bank certificates of deposit⁽¹⁾		—		472,080			—		472,080
Corporate debt securities⁽¹⁾		—		2,059,159			—		2,059,159
Time deposits		—		84,443			—		84,443
Corporate equity securities⁽²⁾		370		—			—		370
Foreign currency derivative contracts⁽³⁾		—		214,041			—		214,041

Financial assets at fair value	$	936,808	$	3,705,920		$	—	$	4,642,728

Liabilities
Foreign currency derivative contracts⁽³⁾		—		(1,401	)		—		(1,401	)

Total financial assets and liabilities at fair value	$	936,808	$	3,704,519		$	—	$	4,641,327

⁽¹⁾	The money market funds, government and agency securities, commercial paper and bank certificates of deposit, and corporate debt securities are classified as part of either cash and cash equivalents or investments in marketable securities in the consolidated balance sheets.

⁽²⁾	The corporate equity securities are classified as part of the other long-term assets and other marketable securities are classified as investments in marketable securities in the consolidated balance sheets.

⁽³⁾

Foreign currency derivative contracts are classified as part of either other current assets or other current liabilities in the consolidated balance sheets. The notional amounts of the foreign currency derivative contracts were $3.4 billion, including contracts designated as net investment hedges of $3 billion, as of December 31, 2012, and $1.8 billion, including contracts designated as net investment hedges of $1.3 billion, as of December 31, 2013.

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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