Clearwire 2009 Annual Report Download - page 104

4. In
ves
tm
e
nt
s
I
nvestments as o
f
Decem
b
er 31, 2009 an
d
2008 cons
i
st o
f
t
h
e
f
o
ll
ow
i
ng (
i
nt
h
ousan
d
s):
C
ost
G
ains Losses Fair Value
C
ost
G
ains Losses Fair Value
G
ross
U
nrealized
G
ross
U
nrealize
d
December
31, 2009
December
31, 2008
S
hort-ter
m
U.S. Government and
Agency Issues . . . . $2,106,584 $ 231 $(154) $2,106,661 $1,899,529 $2,220 $— $1,901,749
L
on
g
-ter
m
U.S. Government and
Agency Issues . . . . 74,670 — (1
5
4) 74,
5
16 — — — —
O
ther debt securities . . . 8,959 4,212 — 13,171 18,974 — — 18,974
Tota
ll
ong-ter
m
.
.....
.
8
3,629 4,212
(
1
5
4
)
87,687 18,974 — — 18,974
T
o
t
a
lin
ves
tm
e
nt
s
.....
$
2,190,213
$
4,443
$
(308)
$
2,194,348
$
1,918,503
$
2,220
$
—
$
1,920,723
For the years ended December 31, 2009 and 2008, we recorded an other-than-temporary impairment loss o
f
$
10.0 million and
$
17.0 million, respectivel
y
, related to our other debt securities
.
At Decem
b
er 31, 2009, U.S. Government an
d
Agency Issues secur
i
t
i
es w
i
t
h
an amort
i
ze
d
cost
b
as
i
so
f
$929.9 million had unrealized losses of approximatel
y
$308,000. All of these securities have been in an unrealized
l
oss pos
i
t
i
on
f
or
l
ess t
h
an two mont
h
san
d
t
h
e unrea
li
ze
dl
osses resu
l
te
df
rom c
h
anges
i
n
i
nterest rates.
O
ther debt securities include investments in collateralized debt obligations, which we refer to as CDOs
,
s
upporte
dby
pre
f
erre
d
equ
i
t
y
secur
i
t
i
es o
fi
nsurance compan
i
es an
dfi
nanc
i
a
li
nst
i
tut
i
ons w
i
t
h
state
dfi
na
l
matur
i
t
y
d
ates
i
n 2033 an
d
2034. T
h
ese are var
i
a
bl
e rate
d
e
b
t
i
nstruments w
h
ose
i
nterest rates are norma
lly
rese
t
approximately every 30 or 90 days through an auction process. As of December 31, 2009, the total fair value
and cost of our security interests in CDOs was
$
13.2 million and
$
9.0 million, respectively. The total fair value and
c
ost of our securit
y
interests in CDOs as of December 31, 2008 was $12.9 million. We also own Auction Market
P
referred securities issued b
y
a monoline insurance compan
y
and these securities are perpetual and do not have a
fi
na
l
state
d
matur
i
ty. In Ju
l
y 2009, t
h
e
i
ssuer’s cre
di
t rat
i
ng was
d
owngra
d
e
d
to CC an
d
Caa2
b
y Stan
d
ar
d
& Poor’s
and Mood
y
’s ratin
g
services, respectivel
y
and the total fair value and cost of our Auction Market Preferre
d
s
ecurities was written down to $0. The total fair value and cost of our Auction Market Preferred securities as of
D
ecember 31
,
2008 was
$
6.1 million. Current market conditions do not allow us to estimate when the auctions for
our ot
h
er
d
e
b
t secur
i
t
i
es w
ill
resume,
if
ever, or
if
a secon
d
ar
y
mar
k
et w
ill d
eve
l
op
f
or t
h
ese secur
i
t
i
es. As a resu
l
t
,
our other debt securities are classified as lon
g
-term investments
.
T
he cost and fair value of investments at December 31, 2009, b
y
contractual
y
ears-to-maturit
y
, are presente
d
b
elow (in thousands):
C
ost Fair Valu
e
D
ue within one yea
r
.
....................................... $2
,
106
,
584 $2
,
106
,
66
1
D
ue between one and five
y
ear
s
...............................
74,670 74,
5
1
6
D
ue in ten
y
ears or
g
reate
r
...................................
8,9
5
9 13,171
T
ota
l
...................................................
$
2
,
190
,
213
$
2
,
194
,
348
94
CLEARWIRE CORPORATION AND
S
UB
S
IDIARIE
S
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)