MoneyGram 2011 Annual Report Download - page 106

Table of Contents
d) Other Fair Value Measurements
The Company also records the investments in its defined benefit pension plan trust at fair value. The majority of the plan’s investments are interest−bearing
cash or common collective trusts issued and held by the plan’s trustee. The fair values of plan investments held by the trustee of the plan are determined by
the trustee based on the current market values of the underlying assets. In instances where market prices are not available, market values are determined by
using bid quotations obtained from major market makers or security exchanges or bid quotations for identical or similar obligations. See Note 10 — Pension
and Other Benefits for further description of investments held by the plan.
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) 2011 2010
Cash $2,016,451 $1,042,381
Money markets 555,659 1,818,138
Deposits 64 5,422
Cash and cash equivalents (substantially restricted) 2,572,174 2,865,941
Short−term investments (substantially restricted) 522,024 405,769
Available−for−sale investments (substantially restricted) 102,771 160,936
Total investment portfolio $3,196,969 $3,432,646
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 U.S.
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 with financial institutions rated BBB 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.
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