Cash, Cash Equivalents, and Investments

Cash and Cash Equivalents

The following table summarizes the Company's cash and cash equivalents (in millions):



	As of
	September 30, 2011		December 31, 2010
Cash:
Demand deposits	$	571.8	$	413.0
Time deposits	976.2		273.3
Total cash	1,548.0		686.3
Cash equivalents:
U.S. government securities	—		76.7
Government-sponsored enterprise obligations	—		5.0
Commercial paper	—		4.0
Money market funds	1,174.4		1,039.9
Total cash equivalents	1,174.4		1,125.6
Total cash and cash equivalents	$	2,722.4	$	1,811.9

Investments in Available-for-Sale and Trading Securities

The following table summarizes the Company's unrealized gains and losses, and fair value of investments designated as available-for-sale and trading securities, as of September 30, 2011, and December 31, 2010 (in millions):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of September 30, 2011:
Fixed income securities:
U.S. government securities	$	361.6	$	—	$	(0.1	)	$	361.5
Government-sponsored enterprise obligations	368.2		0.3		(0.1		)	368.4
Foreign government debt securities	2.4		—		—			2.4
Certificates of deposit	38.0		—		—			38.0
Asset-backed securities	111.7		0.3		(0.1		)	111.9
Corporate debt securities	516.1		0.7		(1.2		)	515.6
Total fixed income securities	1,398.0		1.3		(1.5		)	1,397.8
Total available-for-sale securities	1,398.0		1.3		(1.5		)	1,397.8
Trading securities (1)	10.1		—		—			10.1
Total	$	1,408.1	$	1.3	$	(1.5	)	$	1,407.9

Reported as:
Short-term investments	$	632.3	$	0.2	$	(0.1	)	$	632.4
Long-term investments	775.8		1.1		(1.4		)	775.5
Total	$	1,408.1	$	1.3	$	(1.5	)	$	1,407.9

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(1)	Balance includes the Company's non-qualified deferred compensation plan assets. For additional information, see Note 12, Employee Benefits, under the section Deferred Compensation Plan.



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of December 31, 2010:
Fixed income securities:
U.S. government securities	$	158.2	$	0.2	$	—		$	158.4
Government-sponsored enterprise obligations	213.8		0.4		(0.2		)	214.0
Foreign government debt securities	46.8		0.2		—			47.0
Certificates of deposit	20.9		0.1		—			21.0
Commercial paper	9.5		—		—			9.5
Asset-backed securities	90.1		—		(0.1		)	90.0
Corporate debt securities	459.7		2.2		(0.2		)	461.7
Total fixed income securities	999.0		3.1		(0.5		)	1,001.6
Total available-for-sale securities	999.0		3.1		(0.5		)	1,001.6
Trading securities (1)	8.1		—		—			8.1
Total	$	1,007.1	$	3.1	$	(0.5	)	$	1,009.7

Reported as:
Short-term investments	$	473.6	$	0.9	$	—		$	474.5
Long-term investments	533.5		2.2		(0.5		)	535.2
Total	$	1,007.1	$	3.1	$	(0.5	)	$	1,009.7

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(1)	Balance includes the Company's non-qualified deferred compensation plan assets. For additional information, see Note 12, Employee Benefits, under the section Deferred Compensation Plan.

The following table presents the maturities of the Company's available-for-sale and trading securities, as of September 30, 2011 (in millions):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Due within one year	$	622.2	$	0.2	$	(0.1	)	$	622.3
Due between one and five years	775.8		1.1		(1.4		)	775.5
No contractual maturity	10.1		—		—			10.1
Total	$	1,408.1	$	1.3	$	(1.5	)	$	1,407.9

The following tables present the Company's trading and available-for-sale investments that are in an unrealized loss position as of September 30, 2011, and December 31, 2010 (in millions):



	Less than 12 Months					12 Months or Greater				Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
As of September 30, 2011
Corporate debt securities	$	284.0	$	(1.3	)	$	—	$	—	$	284.0	$	(1.3	)
U.S. government securities	136.0		(0.1		)	—		—		136.0		(0.1		)
Government-sponsored enterprise obligations	213.6		(0.1		)	—		—		213.6		(0.1		)
Asset-backed securities (1)	64.3		—			0.8		—		65.1		—
Total	$	697.9	$	(1.5	)	$	0.8	$	—	$	698.7	$	(1.5	)

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(1)	Balance includes investments that were in an immaterial unrealized loss position as of September 30, 2011.



	Less than 12 Months					12 Months or Greater				Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
As of December 31, 2010
Corporate debt securities (1)	$	104.3	$	(0.2	)	$	28.8	$	—	$	133.1	$	(0.2	)
Government-sponsored enterprise obligations	57.8		(0.2		)	—		—		57.8		(0.2		)
Foreign government debt securities (1)	—		—			6.2		—		6.2		—
Commercial paper (1)	5.0		—			—		—		5.0		—
Asset-backed securities	54.7		(0.1		)	—		—		54.7		(0.1		)
Total	$	221.8	$	(0.5	)	$	35.0	$	—	$	256.8	$	(0.5	)

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(1)	Balance includes investments that were in an immaterial unrealized loss position as of December 31, 2010.

The Company had 157 and 73 investments in unrealized loss positions as of September 30, 2011, and December 31, 2010, respectively. The gross unrealized losses related to these investments were primarily due to changes in market interest rates. For the fixed income securities that have unrealized losses, the Company determined that (i) it does not have the intent to sell any of these investments and (ii) it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. The Company did not consider these investments to be other-than-temporarily impaired as of September 30, 2011, and December 31, 2010. The Company reviews its investments to identify and evaluate investments that have an indication of possible impairment. The Company aggregates its investments by category and length of time the securities have been in a continuous unrealized loss position to facilitate its evaluation.

Restricted Cash and Investments

The Company classifies cash and investments as restricted cash and investments on its condensed consolidated balance sheet for: (i) amounts held in escrow accounts, as required by certain acquisitions completed in 2005 and 2010; (ii) the India Gratuity Trust and Israel Retirement Trust, which cover statutory severance obligations in the event of termination of the Company's India and Israel employees, respectively; and (iii) the Directors and Officers ("D&O") indemnification trust. During the three and nine months ended September 30, 2011, the Company distributed approximately $2.3 million and $30.0 million of restricted cash, mainly related to the 2010 acquisitions.

In connection with the 2010 acquisition of Ankeena Networks, Inc. ("Ankeena"), the Company agreed to pay from escrow a total amount of $10.7 million, representing the cash value of unvested restricted shares of Ankeena common stock as of April 8, 2010, held by certain former Ankeena employees. Through September 30, 2011, the Company has released $8.4 million from escrow and expects to release the remaining $2.3 million from escrow over the next twelve months as the restricted shares vest.

The following table summarizes the Company's cash and investments that are classified as restricted cash and investments in the condensed consolidated balance sheets (in millions):



	As of
	September 30, 2011		December 31, 2010
Restricted cash:
Demand deposits	$	0.5	$	1.7
Total restricted cash	0.5		1.7
Restricted investments:
U.S. government securities	—		0.6
Corporate debt securities	1.8		2.7
Mutual funds	1.2		—
Money market funds	87.0		114.3
Total restricted investments	90.0		117.6
Total restricted cash and investments	$	90.5	$	119.3

As of September 30, 2011, and December 31, 2010, the unrealized gains and losses related to restricted investments were immaterial.

Other Investments

The Company's minority equity investments in privately-held companies are carried at cost, as the Company does not have a controlling interest or the ability to exercise significant influence over these companies. The Company adjusts its privately-held equity investments for any impairment if the fair value is less than the carrying value of the respective assets on an other-than-temporary basis.

As of September 30, 2011, and December 31, 2010, the carrying values of the Company’s privately-held and other equity investments of $51.0 million and $22.1 million, respectively, were included in other long-term assets in the condensed consolidated balance sheets. During the three and nine months ended September 30, 2011, the Company invested $23.8 million and $32.5 million, respectively, in privately-held and other equity investments. During the three and nine months ended September 30, 2010, the Company invested $4.6 million and $9.8 million in privately-held and other equity investments.

In the three and nine months ended September 30, 2011, the Company recognized a loss of $1.8 million from the impairment of a privately-held investment that the Company judged to be other than temporary, partially offset by gains on other privately-held investments. In the nine months ended September 30, 2010, the Company recognized a gain of $3.2 million from its minority equity investments in Ankeena upon the acquisition of Ankeena.