American Home Shield 2010 Annual Report Download - page 98

Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 13. Cash and Marketable Securities (Continued)
The aggregate market value of the Company's short- and long-term investments in debt and equity securities was $140.6 million and $132.2 million, and
the aggregate cost basis was $133.0 million and $126.7 million at December 31, 2010 and 2009, respectively.
As of December 31, 2010 and 2009, $240.1 million and $256.5 million, respectively, of the cash and short- and long-term marketable securities balance
are associated with regulatory requirements at American Home Shield and for other purposes. American Home Shield's investment portfolio has been
invested in a combination of high quality, short duration fixed income securities and equities.
Gains and losses on sales of investments, as determined on a specific identification basis, are included in investment income in the period they are
realized. The Company periodically reviews its portfolio of investments to determine whether there has been an other than temporary decline in the value of
the investments from factors such as deterioration in the financial condition of the issuer or the market(s) in which it competes. The table below summarizes
gross realized gains and gross realized losses, each resulting from sales of available-for-sale securities and impairment charges due to other than temporary
declines in the value of certain investments.
Year Ended Dec. 31,
(In thousands) 2010 2009 2008
Gross realized gains, pre-tax $ 2,326 $ 3,882 $ 13,191
Gross realized gains, net of tax 1,418 2,385 10,038
Gross realized losses, pre-tax (207) (1,492) (10,896)
Gross realized losses, net of tax (126) (917) (8,292)
Impairment charges, pre-tax (174) (5,854) (16,478)
Impairment charges, net of tax (106) (3,596) (12,540)
The table below summarizes unrealized gains and losses in the investment portfolio
As of December 31,
(In thousands) 2010 2009
Unrealized gains $ 9,621 $ 7,674
Unrealized losses (1,995) (2,226)
Portion of unrealized losses which had been in a loss position for more than
one year (109) (739)
Aggregate fair value of the investments with unrealized losses 18,535 26,837
Note 14. Receivable Sales
The Company has entered into an accounts receivable securitization arrangement under which TruGreen LawnCare and Terminix may sell certain
eligible trade accounts receivable to Funding, the Company's wholly owned, bankruptcy-remote subsidiary, which is consolidated for financial reporting
purposes. Funding, in turn, may transfer, on a revolving basis, an undivided percentage ownership interest of up to $50.0 million in the pool of accounts
receivable to the Purchasers. The amount of the eligible receivables varies during the year based on seasonality of the businesses and could, at times, limit the
amount available to the Company from the sale of these interests. As of December 31, 2010, the amount of eligible receivables was approximately
$31.5 million.
During the years ended December 31, 2010 and 2009, there were no transfers of interests in the pool of trade accounts receivables to Purchasers under
this arrangement. During the third
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