First Data 2007 Annual Report Download - page 111

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
"Other assets" line item of the Consolidated Balance Sheets and include primarily equity securities. In addition, the Company has investments in non-
marketable equity securities and other investments that are carried at cost of $27.5 million and $34.8 million at December 31, 2007 and 2006, respectively,
and are also recorded in the "Other assets" line item of the Consolidated Balance Sheets. Realized gains and losses associated with the investments described
above are recognized in the "Other income (expense)" line item of the Consolidated Statements of Income.
The principal components of investment securities are as follows (in millions):
Cost(1)
Gross
Unrealized
Gain
Gross
Unrealized
(Loss) Fair Value
Successor
December 31, 2007
State and municipal obligations (2) $ 1,080.0 $ — $ — $ 1,080.0
Other securities:
Cost-based investments 27.5 — — 27.5
Equity 43.0 — — 43.0
Preferred stock 6.4 — — 6.4
Total other 76.9 — — 76.9
Totals $ 1,156.9 $ — $ — $ 1,156.9
Predecessor
December 31, 2006
State and municipal obligations $ 12,023.1 $ 115.4 $ (89.0) $ 12,049.5
Mortgage-backed securities 27.1 0.1 (0.2) 27.0
Other securities:
Investment partnerships (3) 93.3 — — 93.3
Cost-based investments 34.8 — — 34.8
Equity — 0.3 — 0.3
Preferred stock 26.8 2.5 — 29.3
Total other 154.9 2.8 — 157.7
Totals $ 12,205.1 $ 118.3 $ (89.2) $ 12,234.2
(1) Represents amortized cost for debt securities.
(2) Auction rate securities represent $1,076.7 million of this balance. Currently the auction mechanism on certain of these investments has failed so these
investments are not liquid; however, the securities remain "AA" rated and the Company has the ability and intent to hold them until the auction
mechanism or alternative liquidity vehicle is established. The Company does not believe these securities are impaired.
(3) Investments in investment partnerships are accounted for under the equity method of accounting.
The following table presents maturity information for the Company's debt securities, excluding consideration of auction mechanisms, at December 31,
2007 (in millions):
Fair Value
Due within one year $ 3.2
Due after one year through five years —
Due after five years through 10 years 35.0
Due after 10 years 1,041.8
Total Debt Securities $ 1,080.0
Unrealized losses at December 31, 2007 are less than $50,000. The following table presents the gross unrealized losses and fair value of the Company's
investments with unrealized losses that were not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that
individual securities have been in a continuous unrealized loss position, at December 31, 2006 (in millions):
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