MoneyGram 2009 Annual Report Download - page 101

Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Available-for-sale Investments — Available-for-sale investments consist of mortgage-backed securities, asset-backed securities and
agency debenture securities. After other-than-temporary impairment charges, the amortized cost and fair value of available-for-sale
investments are as follows at December 31:
2009
Gross Gross Net
Amortized Unrealized Unrealized Fair Average
(Amounts in thousands, except net average price) Cost Gains Losses Value Price
Residential mortgage-backed securities — agencies $ 259,563 $ 9,296 $ (29) $ 268,830 $ 104.13
Other asset-backed securities 15,706 6,382 — 22,088 3.74
United States government agencies 6,854 861 — 7,715 85.72
Total $ 282,123 $ 16,539 $ (29) $ 298,633 $ 34.84
2008
Gross Gross Net
Amortized Unrealized Unrealized Fair Average
(Amounts in thousands, except net average price) Cost Gains Losses Value Price
Residential mortgage-backed securities — agencies $ 385,276 $ 6,523 $ (2) $ 391,797 $ 102.37
Other asset-backed securities 27,703 1,825 — 29,528 4.43
United States government agencies 16,463 986 — 17,449 91.84
Total $ 429,442 $ 9,334 $ (2) $ 438,774 $ 41.05
Gains and Losses and Other-Than-Temporary Impairments — At December 31, 2009 and 2008, net unrealized gains of $16.5 million
and $9.3 million, respectively, are included in the Consolidated Balance Sheets in "Accumulated other comprehensive loss." No deferred
tax liability is currently recognized for the net unrealized gains due to the deferred tax position described in Note 15 — Income Taxes.
During 2009, 2008 and 2007, losses of $4.1 million, $326.6 million and $1,189.6 million, respectively, were reclassified from
"Accumulated other comprehensive loss" to earnings in connection with the sale, maturity or pay-down of the underlying securities and
other-than-temporary impairments recognized during the year. Net securities gains (losses) were as follows for the year ended December
31:
(Amounts in thousands) 2009 2008 2007
Gross realized gains $ — $ 34,200 $ 5,611
Gross realized losses (2) (290,498) (1,962)
Other-than-temporary impairments (4,069) (70,274) (1,193,210)
Net securities losses from available-for-sale investments (4,071) (326,572) (1,189,561)
Unrealized gains (losses) from trading investments and related put options 4,304 (14,116) (195)
Realized gains from trading investments and related put options 7,557 — —
Net securities gains (losses) $ 7,790 $ (340,688) $ (1,189,756)
The Company realigned its investment portfolio during the first quarter of 2008, resulting in the sale of securities with a fair value of
$3.2 billion (after other-than-temporary impairment charges) for proceeds of $2.9 billion and a net realized loss of $256.3 million. The
net realized loss was the result of further deterioration in the markets during the first quarter of 2008 and the short timeframe over which
the Company sold its securities. Proceeds from the sales were reinvested in cash and cash equivalents to supplement the Company's assets
in excess of payment service
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