American Home Shield 2011 Annual Report Download - page 108

Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 13. Cash and Marketable Securities (Continued)
(In thousands) Amortized Cost
Gross Unrealized
Gains
Gross Unrealized
Losses Fair Value
Available-for-sale and trading securities,
December 31, 2010:
Debt securities $ 96,594 $ 4,622 $ (283)$100,933
Equity securities 36,363 4,999 (1,712) 39,650
Total securities $ 132,957 $ 9,621 $ (1,995)$140,583
The portion of unrealized losses which had been in a loss position for more than one year was $1.7 million and $0.1 million as of December 31, 2011 and
2010, respectively. The aggregate fair value of the investments with unrealized losses was $13.6 million and $18.5 million as of December 31, 2011 and 2010,
respectively.
As of December 31, 2011 and 2010, $226.2 million and $242.2 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. Such amounts are identified as being potentially unavailable to
be paid to the Company by its subsidiaries. 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 the issuer competes.
The table below summarizes proceeds, 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) 2011 2010 2009
Proceeds from sales of securities $ 45,065 $ 20,071 $ 35,141
Gross realized gains, pre-tax 6,065 2,326 3,882
Gross realized gains, net of tax 3,714 1,418 2,385
Gross realized losses, pre-tax (249) (207) (1,492)
Gross realized losses, net of tax (153) (126) (917)
Impairment charges, pre-tax (195) (174) (5,854)
Impairment charges, net of tax (119) (106) (3,596)
Note 14. Receivable Sales
The Company has an accounts receivable securitization arrangement under which TruGreen 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
104