First Data 2007 Annual Report Download - page 200

Chase Paymentech
NOTES TO COMBINED FINANCIAL STATEMENTS – CONTINUED
For the years ended December 31, 2007 and 2006 and
the year ended December 31, 2005 (unaudited)
At December 31, 2006
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
Debt securities:
U.S. Government obligations $ 6,052 $ 13 $ (60) $ 6,005
Government agency obligations 12,827 32 (119) 12,740
Corporate obligations 77,654 21 (25) 77,650
Mutual funds 37,463 — (473) 36,990
Total $ 133,996 $ 66 $ (677) $ 133,385
The Company assesses the potential for other-than-temporary impairments of available-for-sale securities each reporting period and of cost method
investments whose fair values are not readily determinable when impairment indicators are present. For the years ended December 31, 2007 and 2006, there
were no declines in the value of investments deemed to be other-than-temporary. For the year ended December 31, 2005, the Company recognized an
impairment of $126 thousand on a cost method investment for a decline in fair value deemed to be other-than-temporary.
The following table presents unrealized losses and fair value for securities that were in an unrealized loss position, including certain highly liquid securities
classified as cash equivalents on the combined balance sheets, at December 31, 2007 and 2006 (in thousands):
At December 31, 2007
Less than 12 Months 12 Months or Greater Total
Estimated
Fair Value
Unrealized
Loss
Estimated
Fair Value
Unrealized
Loss
Estimated
Fair Value
Unrealized
Loss
Debt securities:
U.S. Government obligations $ — $ — $ 1,008 $ (1) $ 1,008 $ (1)
Government agency obligations — — 1,958 (43) 1,958 (43)
Corporate obligations 1,130 (220) 56 (2) 1,186 (222)
Total $ 1,130 $ (220) $ 3,022 $ (46) $ 4,152 $ (266)
At December 31, 2006
Less than 12 Months 12 Months or Greater Total
Estimated
Fair Value
Unrealized
Loss
Estimated
Fair Value
Unrealized
Loss
Estimated
Fair Value
Unrealized
Loss
Debt securities:
U.S. Government obligations $ 501 $ (2) $ 3,480 $ (58) $ 3,981 $ (60)
Government agency obligations 632 (1) 7,118 (118) 7,750 (119)
Corporate obligations 4,113 (1) 2,984 (24) 7,097 (25)
Mutual Funds — — 36,990 (473) 36,990 (473)
Total $ 5,246 $ (4) $ 50,572 $ (673) $ 55,818 $ (677)
As the Company has both the intent and ability to hold securities with unrealized losses until a recovery of fair value, which may be at maturity, the Company
does not consider such securities to be other-than-temporarily impaired at December 31, 2007. Realized gains and losses from sales of available-for-sale
securities were $57 thousand and $1.2 million, respectively, during 2007. There were no significant realized gains and losses from sales of available-for-sale
securities during 2006 or 2005.
The cost and estimated fair value of the Company's debt securities (including certain highly liquid securities that are classified as cash equivalents in the
combined balance sheets) are shown below by contractual maturity (in thousands). Expected maturities may differ from contractual maturities based on the
Company's investment policies.
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