REDEMPTION SETTLEMENT ASSETS Sample Clauses

REDEMPTION SETTLEMENT ASSETS. Redemption settlement assets consist of cash and cash equivalents and securities available-for-sale and are designated for settling redemptions by collectors of the AIR MILES Reward Program in Canada under certain contractual relationships with sponsors of the AIR MILES Reward Program. These assets are primarily denominated in Canadian dollars. Realized gains and losses from the sale of investment securities were not material. The principal components of redemption settlement assets, which are carried at fair value, are as follows: Cash and cash equivalents $ 54,604 $ — $ — $ 54,604 $ 21,583 $ — $ — $ 21,583 Government bonds 63,674 93 (169 ) 63,598 53,017 109 (159 ) 52,967 Corporate bonds 200,120 402 (1,671 ) 198,851 186,262 767 (622 ) 186,407 Total $ 318,398 $ 495 $ (1,840 ) $ 317,053 $ 260,862 $ 876 $ (781 ) $ 260,957 In accordance with FASB Staff Position FAS 115-1 and FAS 124-1, The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments, the following table shows the gross unrealized losses and fair value for those investments that were in an unrealized loss position as of December 31, 2007 and 2006, aggregated by investment category and the length of time that individual securities have been in a continuous loss position: Government bonds $ 19,884 $ (92 ) $ 23,717 $ (77 ) $ 43,601 $ (169 ) Corporate bonds 62,360 (881 ) 100,398 (790 ) 162,758 (1,671 ) Total $ 82,244 $ (973 ) $ 124,115 $ (867 ) $ 206,359 $ (1,840 ) Government bonds $ 3,465 $ (13 ) $ 23,582 $ (146 ) $ 27,047 $ (159 ) Corporate bonds 39,942 (151 ) 78,298 (471 ) 118,240 (622 ) Total $ 43,407 $ (164 ) $ 101,880 $ (617 ) $ 145,287 $ (781 ) Market values were determined for each individual security in the investment portfolio. When evaluating the investments for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the Issuer, and the Company’s ability and intent to hold the investment for a period of time, which may be sufficient for anticipated recovery in market value. The unrealized losses on the Company’s investments during 2007 in government and corporate bond securities were caused primarily by changes in interest rates. The Company typically invests in highly-rated securities with low probabilities of default. The Company also has the ability to hold the investments until maturity. As of December 31, 2007, the Company does not consider t...