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Table of Contents
Realized gains and losses and other-than-temporary impairments related to these available-for-sale investment securities are reported in the “
Net
securities gains” line in the Consolidated Statements of Operations while unrealized gains and losses related to available-for-
sale securities are
recorded in "Accumulated other comprehensive loss" in the stockholders’
deficit section of the Consolidated Balance Sheets. There were no
other-than-temporary impairments during the years of December 31, 2013 and 2012 .
Assets and liabilities that are disclosed at fair value
— Debt and interest-
bearing investments (substantially restricted) are carried at amortized
cost; however, the Company estimates the fair value of debt for disclosure purposes. The fair value of debt is estimated using market quotations,
where available, credit ratings, observable market indices and other market data (Level 2). The following table is a summary of the fair value and
carrying value of the debt as of December 31 :
The carrying amounts for the Company's cash and cash equivalents (substantially restricted) and the interest-
bearing investments (substantially
restricted) approximate fair value as of December 31, 2013 and 2012 .
Assets and liabilities measured at fair value on a non
-recurring basis — Assets and liabilities that are measured at fair value on a non-
recurring
basis relate primarily to the Company’s tangible fixed assets, goodwill and other intangible assets, which are re-
measured only in the event of an
impairment. No impairments of fixed assets, goodwill and other intangible assets were recorded during the years ended December 31, 2013
and
2012 .
Fair value re-
measurements are normally based on significant unobservable inputs (Level 3). Tangible and intangible fixed asset fair values are
normally derived using a discounted cash flow model based on expected future cash flows discounted using a weighted-
average cost of capital
rate. If it is determined an impairment has occurred, the carrying value of the asset is reduced to fair value with a corresponding charge to the
"Other expense" line in the Consolidated Statements of Operations.
The Company also records the investments in its defined benefit pension plan, or the Pension Plan, trust at fair value. The majority of the
Pension Plan’s investments are common collective trusts held by the Pension Plan’
s trustee. The fair values of the Pension Plan's investments 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 Pension Plan.
Note 5 — Investment Portfolio
The Company’s portfolio is invested in cash and cash equivalents, interest-bearing investments and available-for-
sale investments, all of which
are substantially restricted as described in Note 2 — Summary of Significant Accounting Policies
. The following table is a summary of the
components of the investment portfolio as of December 31 :
Cash and Cash Equivalents (substantially restricted) — Cash and cash equivalents consist of interest-bearing deposit accounts, non-
interest
bearing transaction accounts and money market securities. The Company’s money market securities are invested in four
funds, all of which are
AAA rated and consist of U.S. 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.
Interest
-bearing Investments (substantially restricted) — Interest-
bearing investments consist of time deposits and certificates of deposit with
original maturities of up to 24 months , and are issued from financial institutions rated A- or better as of December 31, 2013 .
F-20
Fair Value
Carrying Value
(Amounts in millions) 2013
2012
2013
2012
Senior secured credit facility and incremental term loan
$
849.2
$
487.1
$
842.9
$
484.9
Second lien notes
—
337.6
—
325.0
(Amounts in millions) 2013
2012
Cash
$
2,204.5
$
2,112.1
Money markets
24.0
571.1
Cash and cash equivalents (substantially restricted)
2,228.5
2,683.2
Interest-bearing investments (substantially restricted)
1,011.6
450.1
Available-for-sale investments (substantially restricted)
48.1
63.5
Total investment portfolio
$
3,288.2
$
3,196.8