First Data 2008 Annual Report Download - page 139

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
were rated "AAA" or the equivalent and all had collateral substantially guaranteed by the U.S. government and continued to pay interest in accordance
with their respective security agreements. The Company has the ability and intent to hold these securities for an extended time period until the securities
recover in value at least to a certain minimum threshold. The Company recognized an other than temporary impairment loss of $48.0 million in 2008.
Refer to Note 20 for additional detail on these securities.
The following table presents maturity information for the Company's debt securities at December 31, 2008 (in millions):
Fair Value
Due within one year $ 97.8
Due after one year through five years 240.4
Due after five years through 10 years 59.0
Due after 10 years 433.3
Total Debt Securities $ 830.5
The following table presents the gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be
other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss
position at December 31, 2008 (in millions):
December 31, 2008 Less than 12 months
More than 12
months
Total
Fair Value
Total
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Student loan auction rate securities $ 492.2 $ (13.3) $ — $ — $ 492.2 $ (13.3)
Corporate Bonds $ 337.7 $ (4.4) $ — $ — $ 337.7 $ (4.4)
As of December 31, 2008 the Company's unrealized losses related to the following:
Student loan auction rate securities—The unrealized losses resulted from student loan auction rate securities ("SLARS") for which the auction
mechanism has failed. The Company believes that these investments will recover substantially all of their principal value by their maturity date; however, the
Company currently cannot assert that it has the intent to hold these securities until they fully recover their par value as it may be willing to sell the securities at
a loss if the price exceeds a certain minimum threshold. The Company has the ability and intent to hold these securities for an extended time period until the
securities recover in value at least to the specified minimum threshold.
Corporate bonds—The unrealized losses on the Company's investments in corporate bonds resulted from the weakening of the global economy and
credit markets during the second half of 2008. The unrealized losses were deemed to be not other-than-temporary because the Company has the ability and
intent to hold these investments until a recovery of fair value occurs which may be upon maturity. Maturities will occur between third quarter of 2009 and first
quarter of 2010.
Note 8: Nonderivative and Derivative Financial Instruments
Concentration of credit risk
FDC maintains cash and cash equivalents, investment securities and certain hedging instruments (for specified purposes) with various financial
institutions. The Company limits its concentration of these financial
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