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The following table provides information, at December 31, 2009, about the Company’s marketable
securities with gross unrealized losses for which no other-than-temporary impairment has been
incurred, and the length of time that individual securities have been in a continuous unrealized loss
position. The gross unrealized loss of $3.7 million, pre-tax, is recognized in accumulated other
comprehensive income:
Fair
Value
Unrealized
Loss
Fair
Value
Unrealized
Loss
Fair
Value
Unrealized
Loss
Less than 12 Months 12 Months or More Total
Auction rate securities . . . . . . $ — $ — $20.6 $(2.3) $ 20.6 $(2.3)
Corporate debt securities . . . . 135.0 (0.3) 2.6 (0.2) 137.6 (0.5)
Asset-backed and mortgage-
backed securities . . . . . . . . 38.3 (0.1) 7.4 (0.7) 45.7 (0.8)
Government and Agency . . . . 107.4 (0.1) — — 107.4 (0.1)
Total . . . . . . . . . . . . . . . . . . . $280.7 $(0.5) $30.6 $(3.2) $311.3 $(3.7)
The following table provides information, at December 31, 2009, about the Company’s marketable
securities with gross unrealized losses for which other-than-temporary impairment has been incurred,
and the length of time that individual securities have been in a continuous unrealized loss position. The
gross unrealized loss of $0.7 million, pre-tax, is recognized in accumulated other comprehensive income:
Fair
Value
Unrealized
Loss
Fair
Value
Unrealized
Loss
Fair
Value
Unrealized
Loss
Less than 12 Months 12 Months or More Total
Corporate debt securities . . . . . . . . $— $— $0.1 $(0.1) $0.1 $(0.1)
Asset-backed and mortgage-backed
securities. . . . . . . . . . . . . . . . . . . . . — — 6.5 (0.6) 6.5 (0.6)
Total . . . . . . . . . . . . . . . . . . . . . . . . $— $— $6.6 $(0.7) $6.6 $(0.7)
Auction rate securities
The Company’s valuation process for its auction rate security portfolio begins with a credit analysis of each
instrument. Under this method, the security is analyzed for factors impacting its future cash flows, such as
the underlying collateral, credit ratings, credit insurance or other guarantees, and the level of seniority of
the specific tranche of the security. Future cash flows are projected incorporating certain security specific
assumptions such as the ratings outlook, the assumption that the auction market will remain illiquid and
that the security’s interest rate will continue to be set at the maximum applicable rate, and that the security
will not be redeemed until its mandatory redemption date. The methodology for determining the
appropriate discount rate uses market-based yield indicators and the underlying collateral as a
baseline for determining the appropriate yield curve, and then adjusting the resultant rate on the basis
of the credit and structural analysis of the security. The unrealized losses on the Company’s auction rate
portfolio are a result of the illiquidity in this market sector and are not due to credit quality. The Company
has the intent to hold these securities until liquidity in the market or optional issuer redemption occurs, and
it is not more likely than not that the Company will be required to sell these securities before anticipated
recovery. Additionally, if the Company requires capital, the Company has available liquidity through its
accounts receivable program and revolving credit facility.
Corporate debt securities
Unrealized losses on the Company’s corporate debt securities are attributable to current economic
conditions and are not due to credit quality. Because the Company does not intend to sell and will not
be required to sell the securities before recovery of their net book values, which may be at maturity, the
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