First Data 2009 Annual Report Download - page 127

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 6: Investment Securities
The principal components of the Company’s investment securities are as follows (in millions):
December 31, 2009 Cost (1)
Gross
Unrealized
Gain
Gross
Unrealized
(Loss) excluding
OTTI (2)
OTTI
Recognized in
OCI (2)(3)
Fair
Value (4)
Student loan auction rate securities ............. $494.4 — $(29.8) $(14.9) $449.7
Corporate bonds ............................ 270.7 $ 0.7 — — 271.4
Other securities:
Cost-based investments .................. 25.1 — — — 25.1
Other ................................ 15.8 0.2 — — 16.0
Total other ........................ 40.9 0.2 — — 41.1
Totals ........................ $806.0 $ 0.9 $(29.8) $(14.9) $762.2
December 31, 2008 Cost (1)
Gross
Unrealized
Gain
Gross
Unrealized
(Loss) excluding
OTTI (2)
OTTI
Recognized in
OCI (2) (3)
Fair
Value (4)
Student loan auction rate securities ............. $505.5 — $(13.3) — $492.2
Corporate bonds ............................ 342.1 — (4.4) — 337.7
Other securities:
Cost-based investments .................. 26.9 — — — 26.9
Other ................................ 37.6 — — — 37.6
Total other ........................ 64.5 — — — 64.5
Totals ........................ $912.1 — $(17.7) — $894.4
(1) Represents amortized cost for debt securities.
(2) “OTTI” refers to other-than-temporary-impairments.
(3) Represents the fair value adjustment for debt securities excluding that attributable to credit losses.
(4) Represents cost for cost-based investments.
Investment securities are a component of the Company’s settlement assets and represent the investment of
funds received by FDC from the sale of payment instruments (official checks and financial institution money
orders) by authorized agents. The investment securities included in current settlement assets include primarily
money market funds, discounted commercial paper and corporate bonds. The Company’s long-term settlement
assets are comprised primarily of SLARS and corporate bonds. The Company received proceeds from the sale of
long-term investment securities of $46.8 million, $0.5 billion, $0.7 billion and $10.9 billion for the years ended
December 31, 2009 and 2008, the successor period from September 25, 2007 through December 31, 2007 and the
predecessor period from January 1, 2007 through September 24, 2007, respectively. Sales of these investments
resulted in $0.6 million of gross realized pretax losses and $0.1 million of gross realized pretax gains for the year
ended December 31, 2009, $0.6 million of gross realized pretax losses and no gross realized pretax gains for the
year ended December 31, 2008, $1.5 million of gross realized pretax losses and $0.3 million of gross realized
pretax gains for the successor period from September 25, 2007 through December 31, 2007 and $12.4 million of
gross realized pretax losses and $16.8 million of gross realized pretax gains for the predecessor period from
January 1, 2007 through September 24, 2007 reclassified out of OCI into the “Investment income, net” line item
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