MoneyGram 2010 Annual Report Download - page 109

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Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 5 — Investment Portfolio
The Company's portfolio is invested in cash and cash equivalents, short-term investments, trading investments and available-for-sale
investments, all of which are substantially restricted as described in Note 2 — Summary of Significant Accounting Policies. Components
of the Company's investment portfolio as of December 31, are as follows:
(Amounts in thousands) 2010 2009
Cash $ 1,042,381 $ 1,243,060
Money markets 1,818,138 1,933,764
Deposits 5,422 200,000
Cash and cash equivalents (substantially restricted) 2,865,941 3,376,824
Short-term investments (substantially restricted) 405,769 400,000
Trading investments and related put options (substantially restricted) — 26,951
Available-for-sale investments (substantially restricted) 160,936 298,633
Total investment portfolio $ 3,432,646 $ 4,102,408
Cash and Cash Equivalents (substantially restricted) — Cash and cash equivalents consist of cash, money-market securities and time
deposits. Cash primarily consists of interest-bearing deposit accounts and non-interest bearing transaction accounts. The Company's
money-market securities are invested in six funds, all of which are AAA rated and consist of United States Treasury bills, notes or other
obligations issued or guaranteed by the United States government and its agencies, as well as repurchase agreements secured by such
instruments. Deposits consist of time deposits with original maturities of three months or less, and are issued from financial institutions
rated AA as of the date of this filing.
Short-Term Investments (substantially restricted) — Short-term investments consist of time deposits and certificates of deposit with
original maturities of greater than three months but no more than thirteen months, and are issued from financial institutions rated AA as
of the date of this filing.
Trading Investments and Related Put Options (substantially restricted) — At December 31, 2009, the Company had one trading
investment with a fair value of $11.8 million on a par value of $29.4 million, and a related put option with a fair value of $15.2 million.
The trading investment was called at par in February 2010, resulting in a $2.4 million gain recorded in "Net securities (gains) losses," net
of the reversal of the related put option.
Two trading investments were called at par during 2009, resulting in a $7.6 million gain recorded in "Net securities (gains) losses," net of
the reversal of the related put options. The fair value of the remaining trading investment was $11.8 million on a par value of
$29.4 million as of December 31, 2009, which was unchanged from the prior year. The fair value of the related put option was
$15.2 million, reflecting a valuation gain of $4.3 million from the passage of time.
The Company recorded a $14.1 million net valuation loss on its trading investments and related put options during the year ended
December 31, 2008 due to market concerns regarding the capital position of the monoline insurers and their intent to pay dividends on
their preferred stock.
F-24