Cash, Cash Equivalents, and Investments

Cash and Cash Equivalents

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



	As of December 31,
	2011		2010
Cash:
Demand deposits	$	633.7	$	413.0
Time deposits	926.0		273.3
Total cash	1,559.7		686.3
Cash equivalents:
U.S. government securities	—		76.7
Government-sponsored enterprise obligations	24.5		5.0
Commercial paper	10.0		4.0
Money market funds	1,316.2		1,039.9
Total cash equivalents	1,350.7		1,125.6
Total cash and cash equivalents	$	2,910.4	$	1,811.9

Investments in Available-for-Sale and Trading Securities

The following table summarizes unrealized gains and losses related to the Company's investments with stated maturities of greater than three months designated as available-for-sale and trading securities, as of December 31, 2011, and 2010 (in millions):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of December 31, 2011:
Fixed income securities:
U.S. government securities	$	301.1	$	—	$	(0.1	)	$	301.0
Government-sponsored enterprise obligations	406.3		0.3		(0.1		)	406.5
Foreign government debt securities	—		—		—			—
Certificates of deposit	31.8		—		—			31.8
Asset-backed securities	124.7		0.1		(0.1		)	124.7
Corporate debt securities	508.2		1.0		(0.5		)	508.7
Total fixed income securities	1,372.1		1.4		(0.8		)	1,372.7
Total available-for-sale securities	1,372.1		1.4		(0.8		)	1,372.7
Trading securities:
Mutual funds (1)	9.3		—		—			9.3
Total trading securities	9.3		—		—			9.3
Total	$	1,381.4	$	1.4	$	(0.8	)	$	1,382.0

Reported as:
Short-term investments	$	640.9	$	0.4	$	—		$	641.3
Long-term investments	740.5		1.0		(0.8		)	740.7
Total	$	1,381.4	$	1.4	$	(0.8	)	$	1,382.0

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(1)	Balance includes the Company's non-qualified deferred compensation plan assets. For additional information, see Note 12, Employee Benefits Plans, 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:
Mutual funds (1)	8.1		—		—			8.1
Total trading securities	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 Plans, under the section Deferred Compensation Plan.

The following table presents the maturities of the Company's available-for-sale securities, as of December 31, 2011 (in millions):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Due within one year	$	631.6	$	0.4	$	—		$	632.0
Due between one and five years	740.5		1.0		(0.8		)	740.7
Total	$	1,372.1	$	1.4	$	(0.8	)	$	1,372.7

The following tables present the Company's available-for-sale investments that are in an unrealized loss position as of December 31, 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 December 31, 2011
Corporate debt securities	$	189.9	$	(0.5	)	$	—		$	—	$	189.9		$	(0.5	)
U.S. government securities	186.7		(0.1		)	—			—		186.7			(0.1		)
Government-sponsored enterprise obligations	146.0		(0.1		)	—			—		146.0			(0.1		)
Asset-backed securities	76.8		(0.1		)	0.3		*	—		77.1		*	(0.1		)
Total	$	599.4	$	(0.8	)	$	0.3		$	—	$	599.7		$	(0.8	)

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* Balance includes investments that were in an immaterial unrealized loss position as of December 31, 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	$	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	—			—			6.2		*	—		6.2		*	—
Commercial paper	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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* Balance includes investments that were in an immaterial unrealized loss position as of December 31, 2010.

There were no material realized gains or losses from the sale of available-for-sale and trading securities in 2011, 2010, and 2009. The Company generated cash proceeds of $1,926.6 million, $1,624.4 million, and $683.8 million from maturities and sales of our available-for-sale investments during 2011, 2010, and 2009, respectively.

The Company had 135 and 73 investments in unrealized loss positions as of December 31, 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 December 31, 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 consolidated balance sheet for: (i) amounts held in escrow accounts, as required by certain acquisitions; (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 year ended December 31, 2011, the Company distributed approximately $42.0 million of restricted cash, mainly related to the 2010 acquisitions.

In 2010, the Company increased its restricted cash and cash investments by $261.9 million, primarily for the escrow accounts required by the acquisitions completed in 2010, and to a lesser extent for the Israel Retirement Trust established in the first quarter of 2010. The increases in restricted cash were partially offset by distributions of approximately $196.5 million, 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 December 31, 2011, the Company has released $9.8 million from escrow and expects to release the remaining $0.9 million from escrow over the next nine months.

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



	As of December 31,
	2011		2010
Restricted cash:
Demand deposits	$	0.6	$	1.7
Total restricted cash	0.6		1.7
Restricted investments:
U.S. government securities	—		0.6
Corporate debt securities	1.6		2.7
Mutual funds	1.0		—
Money market funds	75.1		114.3
Total restricted investments	77.7		117.6
Total restricted cash and investments	$	78.3	$	119.3

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

Privately-Held Investments

The Company reviews its investments to identify and evaluate investments that have an indication of possible impairment. 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 December 31, 2011, and December 31, 2010, the carrying values of the Company’s privately-held and other equity investments of $51.8 million and $22.1 million, respectively, were included in other long-term assets in the consolidated balance sheets. In 2011, 2010, and 2009, the Company invested a total of $33.1 million, $13.3 million, and $7.2 million, respectively, in privately-held equity investments. In 2010, as a result of the acquisitions of Ankeena and Altor Networks, Inc ("Altor"), the Company recognized a gain of $3.2 million and $2.1 million, respectively, from its minority equity investments in those companies.

In the year ended December 31, 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 2010, the Company determined there were no impairments to its privately-held equity investments During the year ended December 31, 2009, the Company recognized an impairment loss of $5.5 million on its investments in privately-held companies determined to be other than temporary.